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Microgeneration Tax Exemption (increase to €400) on FIT earnings

  • 04-03-2024 01:56PM
    #1
    Registered Users, Registered Users 2 Posts: 36


    Appears that the Government has upped the exemption limit from €200 to €400 starting from 1 Jan 2024

    They also clarify that anything in excess of the limit must be declared and will be subject to income tax, USC and PRSI in the usual manner.

    There is some text (3.1.1) concerning deductible expenses that exclude capital expenses, but do allow for incidental costs associated with the generation of the microgeneration of electricity profits - I might be completely wrong, but potentially this might include any servicing costs or panel cleaning to keep the system in good working order (and to adhere to terms of various panel guarantees/etc).

    The document also makes it clear that the exemption is a applicable to every one named on the home electricity bill.

    Interestingly there is a comment about the "extension of the scheme" until the end of 2025 - not sure what happens after that date...






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Comments

  • Registered Users, Registered Users 2 Posts: 89 ✭✭AntonP


    Thank ian123, good to know.

    All this tax thing is a bit of BS for individuals at home with small generators.

    "Eleanor did not incur any incidental costs in generating this electricity".

    Also, do they expect people to declare and pay 52% (fifty two percent) of whatever goes over 400€ a year in credits (minus "incidental costs")?

    Well, what about including the cost of cleaning my panels on my own time? or what about the time invested in researching and setting up automations ? All that has a cost. Revenue should leave some things alone and not attempt to push people away of going solar and eco for a few coins. Disgusted.



  • Registered Users, Registered Users 2 Posts: 583 ✭✭✭SodiumCooled


    Realistically how much are people exporting? Talking to suppliers you can expect significant credit going into the winter which (if true) would mean to me anyway a good few hundred euro. Are people really declaring over 200 already - I hadn't realised until now there was any tax implication I thought it was just written off against the bill as an in kind payment as such.



  • Registered Users, Registered Users 2 Posts: 12,821 ✭✭✭✭the_amazing_raisin


    Where an individual is already required to file an income tax return, the exempt

    profits do not need to be included on the return. However, where the calculated

    annual profit is in excess of the exempt amount earned from micro-generated

    electricity, that excess must be declared and will be subject to income tax, USC and

    PRSI in the usual manner

    At least they cleated that up, wasn't actually sure whether it needed to be declared

    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



  • Registered Users, Registered Users 2 Posts: 901 ✭✭✭ColemanY2K


    I've already clocked up €73 since 1st February (7 or so weeks). Two of us on the bill so I fully expect to hit the €800 tax free threshold at some point in the autumn.

    🌞 7.79kWp PV System. Comprised of 4.92kWp Tilting Ground Mount + 2.87kWp @ 27°, azimuth 180°, West Waterford 🌞



  • Registered Users, Registered Users 2 Posts: 3,480 ✭✭✭randombar


    Stupid question maybe but is it €400 total export or is it €400 remaining after export - import?



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  • Moderators, Home & Garden Moderators Posts: 7,102 Mod ✭✭✭✭graememk


    It's just on the total export/microgen income.

    And its like all tax, it's what is above €400



  • Registered Users, Registered Users 2 Posts: 2,295 ✭✭✭lau1247


    Slap on another name on the bill and you're good to go, no?

    West Dublin, ☀️ 7.83kWp ⚡5.66 kWp South West, ⚡2.18 kWp North East



  • Registered Users, Registered Users 2 Posts: 19,263 ✭✭✭✭ELM327


    Legally, it is 400 total export.

    I am applying it as export-import for my own case. As it stands I don't generate more than 800 per year (I'm not on metered export) but once they change me to a smart meter I'm sure I'll be well over the threshold.



  • Registered Users, Registered Users 2 Posts: 3,480 ✭✭✭randombar


    Ya I've generated €160 so far this year so I'll need to put a few names on it.

    Re adding names, is it just adding them into the name field in Energia?



  • Registered Users, Registered Users 2 Posts: 901 ✭✭✭ColemanY2K


    🌞 7.79kWp PV System. Comprised of 4.92kWp Tilting Ground Mount + 2.87kWp @ 27°, azimuth 180°, West Waterford 🌞



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  • Registered Users, Registered Users 2 Posts: 623 ✭✭✭idc


    You need to ring energia to do it, (I still have to do that myself), the editable field on the website doesn't appear on your bills just the website!



  • Registered Users, Registered Users 2 Posts: 2,024 ✭✭✭k123456


    Can I add a child name to my bill ,or adult only



  • Registered Users, Registered Users 2 Posts: 901 ✭✭✭ColemanY2K


    needs to be someone eligible to pay income tax.

    🌞 7.79kWp PV System. Comprised of 4.92kWp Tilting Ground Mount + 2.87kWp @ 27°, azimuth 180°, West Waterford 🌞



  • Registered Users, Registered Users 2 Posts: 583 ✭✭✭SodiumCooled


    Very interesting about the two names on the bill - I would almost certainly have just put the bill in my own name when the time comes (new build) but now I know to put in joint names. Thanks for the info on this all who mentioned it.



  • Registered Users, Registered Users 2 Posts: 2,024 ✭✭✭k123456


    Lets imagine, we buy units from the grid, at 8c a unit for example

    and then we export to the grid at 24


    the net income is 24-8c = 16c , surely we can write off the cost to buy the units ?



  • Registered Users, Registered Users 2 Posts: 9,726 ✭✭✭antoinolachtnai


    Sure but you won’t have the benefit of the microgen exemption for this income.



  • Registered Users, Registered Users 2 Posts: 19,263 ✭✭✭✭ELM327


    I'd be curious as to how the separate non microgen income would be demarcated on the bill.



  • Registered Users, Registered Users 2 Posts: 2,024 ✭✭✭k123456


    Its quite possible, the cost involved to collect this tax , will be greater than the tax collected.


    and while the tax is annoying, we in Ireland , have a generous FIT rate (for the moment)



  • Registered Users, Registered Users 2 Posts: 623 ✭✭✭idc


    I'm sure the taxman thought of that, it the same with people thinking you can claim the cost of your system as an expense and therefore not be liable for this tax. So likewise you paying 8c to then export at 24c doesn't matter. All that matters is you exported x units at 24c (how you paid for those or how you paid for the system to generate those is not applicable) it entirely taxed based on x * 24c and then and a tax credit of 400 (or 400 * number of income tax payers on bill) before you pay on the excess.



  • Moderators, Sports Moderators Posts: 18,289 Mod ✭✭✭✭slave1


    There's no minimum age for Income Tax in Ireland so can be a one day old

    My stuff on Adverts, mostly Tesla Pre Highland Model 3

    Public Profile active ads for slave1



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  • Moderators, Sports Moderators Posts: 18,289 Mod ✭✭✭✭slave1


    There's no cost, Ireland is a self declaration tax system so up to you to declare, I highly doubt they will chase on it, bigger fish to fry

    My stuff on Adverts, mostly Tesla Pre Highland Model 3

    Public Profile active ads for slave1



  • Registered Users, Registered Users 2 Posts: 12,821 ✭✭✭✭the_amazing_raisin


    They seem to be trying to set it up so domestic microgeneration doesn't incur any tax, given they've raised the exemption

    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



  • Registered Users, Registered Users 2 Posts: 12,821 ✭✭✭✭the_amazing_raisin


    As a general rule, try to put your partner's name on the bills as well so they always have a few proofs of address handy if needed

    Also if they need to talk to one of the providers it's a lot easier if they're named on the account

    "The internet never fails to misremember" - Sebastian Ruiz, aka Frost



  • Registered Users, Registered Users 2 Posts: 2,646 ✭✭✭SD_DRACULA


    Damn, I need to chase up a few relatives and add them on the bill 😂



  • Registered Users, Registered Users 2 Posts: 59,758 ✭✭✭✭unkel


    5 people on the bill here since day one I got a smart meter, so €2,000 FIT income exempted from income tax

    Oh and wait, I just paid my daughters €2,000 to clean the panels on my shed. That is deductible now too?



  • Registered Users, Registered Users 2 Posts: 2,646 ✭✭✭SD_DRACULA




  • Registered Users, Registered Users 2 Posts: 59,758 ✭✭✭✭unkel


    They promised they would spend it on schoolbooks and college fees 😂


    But seriously, this goes to show what a total nonsense this is. Some overpaid, overpensioned civil servants thought it was a great idea to dream this taxable status of micro gen up. Imagine the hours they wasted having meetings about this and doing up reports. It will never make any material tax money, just as @k123456 said



  • Moderators, Home & Garden Moderators Posts: 7,102 Mod ✭✭✭✭graememk


    Chasing pennies, can't make too much profit from selling to the grid.

    And the ones that could be making a large "profit" are going to be businesses. And that's counted in the tax calculation for them either by having actual profit or less expenditure on electricity



  • Registered Users, Registered Users 2 Posts: 2,024 ✭✭✭k123456


    I'm guessing the overpaid, overpensioned civil servants , in question are trying to justify their existence


    Separately , I called SSE about adding my child onto the bill, not possible to a child, even though a teenage child could conceivably want to pay bill in part, and is liable for tax.


    However, they did mention, if you want to add an adult to the bill , you have to terminate your contract or contracts if you have dual fuel. They were not 100% sure , but reckon the termination fee might be waved , this could work to your advantage if you want to terminate current contract and move to a new contract with better rates (with SSE)


    Asked where do I see , my a record of my FIT rebate from SSE , not possible to see on a regular basis, as the rebates are twice yearly, they explained , might be available on App EnergiHub



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  • Registered Users, Registered Users 2 Posts: 2,700 ✭✭✭bullit_dodger


    I couldn't agree more. It seems a penny pinching exercise designed to work contradictory to the environmental initiatives. E.g. if I was going to go over €400/year and get taxed, I'd rather not fill my battery up every night and use the solar to fill it, rather than fill it at night rate and export.

    I know that means I lose out, but then I don't get taxed.

    At least have it at €1000 or something - not everyone lives with multiple people in the house.



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