An another Frequently asked question, which still got wrong by many.

“Is my Solar Export Generation is taxable event in Ireland”

 Micro-Generation of Electricity. The initiative which offers an income tax exemption of up to €400 for certain profits arising from the micro generation of electricity, has been extended until 31 December 2028.
The relief applies to individuals who generate energy from renewable, alternative energy sources for their own consumption and who sell surplus electricity to the grid.
Here’s a clear breakdown of what that €400 micro-generation income tax exemption means in practical terms (especially relevant for homeowners and small business owners in Ireland with solar PV):
⚡ Micro-Generation Income Tax Exemption (up to €400)
🔹 What It Is
It’s a personal income tax exemption introduced under the Finance Act 2022 and now extended until 31 December 2028.
It allows individuals who generate renewable electricity (for example, via solar PV panels) and export the surplus back to the grid to earn up to €400 per year tax-free on that exported electricity.

 

🔹 Who Qualifies
You qualify if:
  • You are an individual (not a company).
  • You generate renewable electricity mainly for your own household’s consumption (typically under 50 kW AC export capacity — i.e., standard micro-generation under ESB Networks NC6/NC7).
  • You export surplus energy to the grid and receive payment from your electricity supplier (the Clean Export Guarantee – CEG).
  • The payments are made to you personally (i.e., the electricity meter is in your name).
🔹 What’s Covered
  • The tax exemption applies to the income you earn from your supplier for exported electricity — e.g. Energia, Electric Ireland, Bord Gáis, SSE Airtricity, etc.
  • This is usually shown on your bill or in your supplier account as “Export Payments” or “CEG Credit.”
🔹 The Limit
  • You can earn up to €400 per year tax-free.
  • If you earn more than €400, only the excess is taxable at your normal marginal income tax rate.
  • You don’t need to file a tax return if your export income is below €400 and you have no other untaxed income.
🔹 Example
Scenario
Export Income
Tax Due
Home with 6 kW solar PV, earns €320 in CEG credits
€320
No tax payable
Home earns €550 in export payments
€550
Tax applies only on €150 (the amount above €400)
🔹 Duration
  • Originally applied for 2022–2025.
  • Now extended until 31 December 2028 (confirmed in Budget 2025).
🔹 Key Notes
  • It applies only to individuals — not limited companies or partnerships.
  • It covers electricity exported to the national grid — not private energy sharing.
  • It’s an income tax exemption only — VAT and other business taxes don’t apply unless you’re operating as a commercial generator.
🔹 Where It’s Written
  • Finance Act 2022, Section 216D of the Taxes Consolidation Act 1997.
  • Extended by Budget 2025 (Revenue guidance update pending but confirmed in Budget documents).

“What do I do if I get more than €400 credit? Is tax deducted by the electricity supplier?”

Here’s the official position in Ireland:
⚡ If You Earn More Than €400 in Micro-Generation Export Income
🔹 1. Your supplier does not deduct any tax
  • Electricity suppliers (e.g. Electric Ireland, SSE Airtricity, Energia, Bord Gáis, etc.) do not operate PAYE or withhold any tax on your export payments.
  • They pay you the full amount (either as a credit on your bill or a bank transfer), regardless of whether it’s under or over €400.
🔹 2. You are responsible for declaring the excess yourself
  • If your total export income exceeds €400 in a calendar year, you are legally required to declare the excess on your annual income tax return.
  • Only the amount above €400 is taxable.
🔹 3. How to declare it
  • If you’re not normally filing a tax return (PAYE only):
    • You can use Revenue’s “MyAccount” portal → ‘Declare other income’ → ‘Other income not subject to PAYE’.
    • Enter the export income and specify that it is “microgeneration export income.”
  • If you are a self-assessed taxpayer, include it on your Form 11 under “Other income.”
🔹 4. What tax applies
  • The excess over €400 is taxed at your marginal income tax rate (20% or 40%), plus USC and PRSI if applicable.
  • Example:
    • You receive €600 from your supplier in 2025.
    • €400 is exempt.
    • You pay tax only on €200, at your own rate.

 

🟩 Summary Table
Export Income
Supplier Withholding
You Need to File?
Taxable Portion
€350
No
No
None
€420
No
Yes
€20
€700
No
Yes
€300
🔹 5. Practical Tip
Keep a simple record (download statements from your electricity supplier or screenshots of export credits) — Revenue may ask for backup if you’re audited.

“How to declare it If you’re not normally filing a tax return (PAYE only)”

You can use Revenue’s “MyAccount” portal → ‘Declare other income’ → ‘Other income not subject to PAYE’. Enter the export income and specify that it is “microgeneration export income.”

“Do I include the full amount here or the excess amount only?”

Revenue’s own guidance isn’t crystal clear about at first glance.
Here’s the correct and safest approach based on Revenue’s interpretation of Section 216D of the Taxes Consolidation Act 1997 (micro-generation exemption):
✅ You should declare only the taxable excess, not the full amount.
In other words:
  • If your total export income is €600,
  • You enter €200 (the amount above the €400 exemption limit)
    under “Other income not subject to PAYE”, with a note saying “Microgeneration export income – €400 exempt under Section 216D TCA 1997.”
🧾 Reasoning
The €400 is a statutory income tax exemption, meaning:
  • That portion is completely disregarded for tax purposes (it’s not even included as “exempt income” in the return).
  • You are only required to report the taxable balance once the total exceeds €400.
If you enter the full €600, Revenue’s system would treat the entire amount as taxable unless you manually adjust or explain it — which could result in unnecessary tax being assessed.
⚙️ So in practice:
  1. Log into MyAccount → Declare other income → Other income not subject to PAYE
  2. Enter only the portion above €400
  3. Add a note:
    “Micro-generation export income – first €400 exempt under Section 216D TCA 1997.”
That keeps your filing perfectly compliant and transparent.

☀️ How to Declare Micro-Generation Export Income (Over €400)

(For homeowners / PAYE taxpayers who receive Clean Export Guarantee payments)
📅 Applies for:
Tax years 2022 – 2028 (under Section 216D, Taxes Consolidation Act 1997)
✅ Before you start
You’ll need:
  • Your Revenue MyAccount login: https://myaccount.revenue.ie
  • The total amount you were paid by your electricity supplier for exported electricity (e.g. Energia, SSE Airtricity, Electric Ireland).
  • Confirm that your total export income is above €400 in that tax year.

🪜 Step-by-Step Instructions

Step 1. Sign in
Go to https://myaccount.revenue.ie → Click “Sign in” and log in with your PPS number and password.
Step 2. Open “Declare Other Income”
Once logged in, select:
“Manage My Record → Declare Other Income”
Step 3. Choose income type
Select:
“Other income not subject to PAYE”
Step 4. Enter your income details
In the description box, type:
“Micro-generation export income – €400 exempt under Section 216D TCA 1997.”
In the Amount (€) box, enter only the portion above €400.
Example:
  • Total export income = €650
  • Enter → €250
Step 5. Save and submit
Click “Save” and then “Submit” your declaration.
Revenue will automatically include this small taxable amount in your end-of-year balancing statement.
💡 Important Notes
  • The first €400 per year is completely tax-free — no need to declare it.
  • Only amounts above €400 are taxable at your normal income tax, USC and PRSI rates.
  • Suppliers do not deduct tax — you are responsible for declaring any excess.
  • Keep a copy of your export payment statements from your electricity supplier as backup.
📘 Example
Year
Supplier
Export Income
Tax-Free
Taxable
Where to Declare
2025
SSE Airtricity
€360
€360
–
Not required
2025
Energia
€620
€400
€220
MyAccount → Declare Other Income
📞 Need help?

 

 

  • Or call the Revenue PAYE helpline: 01 738 3636