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Three factors for success in the Irish solar market

Ireland’s solar energy sector is rapidly evolving, with strong government support, favorable policies, and increasing awareness driving the shift toward renewable energy. Despite lagging behind other European nations in solar adoption, Ireland is now on a path to significant solar growth. To succeed in this market, businesses, investors, and policymakers must consider three crucial factors: project size, strategic location, and timing.

Size Matters: Optimizing Project Scale for Cost Efficiency

Larger solar projects tend to benefit from economies of scale, reducing overall costs by spreading fixed expenses over a greater number of megawatts. However, in Ireland, there’s a unique advantage for smaller projects due to the way “use of system” charges are structured:

No grid fees for the first 5 MW – Smaller solar farms (≤5 MW) are exempt from costly grid maintenance fees, providing a financial advantage over larger projects.
Lower capital investment – Smaller sites require less upfront capital and can secure funding more easily than massive utility-scale farms.
Portfolio approach – Companies developing multiple small projects can still achieve bulk cost savings when negotiating construction and operation contracts.

Location, Location, Location: Strategic Site Selection

Ireland’s geographical position means that solar irradiance levels are lower than in southern Europe, but proper site selection can maximize efficiency.

Southern Ireland has better solar potential – Locations along the southern coast receive the highest levels of solar radiation (>1,000 kWh/m² annually).
Lower grid congestion in the south – Compared to the northwest, where onshore wind projects dominate, the south offers fewer curtailment risks.
Proximity to population centers – Locating solar farms closer to urban areas minimizes transmission losses and improves efficiency.

Timing is Everything: Capitalizing on Auction Opportunities

With the Renewable Electricity Support Scheme (RESS) auctions offering financial support to renewable energy projects, timing plays a crucial role in success.

Shorter construction timelines – Solar projects can be built faster than wind farms, allowing them to meet auction deadlines more easily.
Early contract awards matter – Projects that secure RESS auction contracts early will benefit from stable, long-term financial backing.
Future auctions favor solar – As Ireland diversifies its energy mix, upcoming auctions are expected to allocate more capacity to solar, reducing reliance on wind power.

The Future of Solar in Ireland: A Bright Outlook

Despite Ireland’s late entry into the solar revolution, the sector is poised for rapid expansion. With continued cost reductions, government incentives, and advancing technology, solar power will play a significant role in meeting Ireland’s goal of 70% renewable energy by 2030.

Whether you’re an investor, developer, or homeowner, now is the perfect time to embrace solar energy and be part of Ireland’s clean energy transition! 🌍⚡🔋

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