June’s good weather did more than lift the spirits of the nation; it also marked a record month for solar power, which provided 8.2 per cent of electricity generated during the month, according to EirGrid. This was up from 5.3 per cent in June 2025. Though still significantly smaller than wind as a source of electricity, solar is experiencing rapid growth.
According to the industry group Solar Ireland, total connected solar capacity had reached 2.7GW by the end of May, an increase of almost 300 per cent since 2023, marking one of the most significant periods of renewable energy deployment in the State’s history.
While utility-scale solar continues to account for the largest share of connected capacity, rooftop and distributed generation are also expanding rapidly across homes, farms, schools, commercial buildings and industrial sites throughout the State. This is contributing to a more decentralised electricity system, where generation is increasingly taking place closer to where energy is consumed, the organisation says.
Large-scale solar farms are now supplying growing volumes of renewable electricity directly to the grid, helping diversify the Republic’s generation mix and reduce reliance on imported fossil fuels. At the same time, distributed generation is broadening participation in the energy transition across households, businesses and communities.
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Looking ahead, the Government’s Climate Action Plan targets 8GW of installed solar capacity by 2030, around three times current levels. That level is achievable if we double down and focus on solar at every level, from large scale solar projects through to commercial, industrial, agriculture, communities, public buildings and residential applications, says Maylon Mahon, consulting partner at EY Ireland.
“Solar is truly accessible at all levels and therein lies its potential. We have space and an ample building stock that could accommodate solar panels, and when partnered with a battery, the potential is amplified and challenges are mitigated. Solar and batteries will form a fundamental pillar of the future electricity system,” she says.
The good news for tapping this potential is the sharp decline in the cost of both solar and battery technology, with costs continuing to fall as deployment increases, she adds.
“Crucially with advances in solar/battery technology, it means that even in places like Ireland that have solid daylight and not necessarily ample sunshine year-round, solar can and will be a credible and important part of the electricity mix. If there is any doubt about its potential, we can simply look across the EU, where despite our recent growth we still sit well behind the EU average, and leaders such as the Netherlands, Germany and Belgium.”
Consumers as well as businesses are recognising the possibilities of solar and are doing the cost-benefit calculations.
Mahon cites research from MaREI, the Research Ireland centre for energy, climate and marine research, that suggests that a typical Dublin household with a 2.4kW solar PV system could generate more than one third of its electricity needs, with a solar installation currently paying for itself in around seven years, when grants are factored in.
“More and more homeowners are recognising that solar is one of the smartest investments they can make in their homes. Ireland’s electricity prices are the highest in Europe – and rising – but solar enables homeowners to generate their own power, reduce their reliance on the grid, and build a secure energy future, making solar not just an environmental choice, but a sound financial one,” says Conor Foley, chief executive of Ohk Energy, which provides solar installations.
Foley says providers are also seeing growing demand for smarter energy-management systems, such as solar-plus battery systems that help homeowners maximise the value of the energy they generate and store by optimising when and how it’s used. “It’s a reflection of how the market is evolving beyond solar generation alone towards smarter, more connected home-energy systems,” he says.
The maximum grant under the domestic solar PV system is currently capped at €1,800 but this is set to be steadily reduced as solar installation costs drop in the years ahead.
While Ireland has made excellent progress in supporting the transition to renewable energy, there is an opportunity to go further, Foley feels. “Increased investment in the SEAI solar grant scheme would make solar more accessible to a wider range of households, particularly those who may struggle with the upfront cost despite the long-term savings. A removal of the income tax on the Microgeneration Support Scheme would be also a huge step towards alleviating the pressure on household budgets.”
Mahon adds that continued grid investment and steamlining of the planning and permitting process are required, as policy stability will encourage investment from households, businesses and developers.
