*1.3. Barriers to Implementation*

Despite the potential of microgeneration technologies to help Ireland meet its energy and emission targets and induce positive shifts in energy consumption, the rate of adoption among homeowners remains low. The reasons include low awareness of microgeneration among homeowners, with intention to install at just over 7% [9] and homeowners' willingness to pay (WTP) falling significantly below market prices. In addition, homeowners purchase, or investment decisions are influenced by factors other than cost–benefit evaluations including the benefits of microgeneration and positive social pressure which can translate into higher uptake [22]. Existing installed microgeneration capacity is very low and a very large increase in installation by 2025 would be required to meet the proposed 5% renewable target. In addition, the network potential to accommodate such an increase in capacity in microgeneration on low voltage network by 2025 not well understood.

Microgeneration policies in other jurisdictions have also encountered issues with growing costs and inadequate incentives i.e., export paymen<sup>t</sup> as the only incentive, may not su fficiently stimulate large scale deployment (for example export tari ff would need to be 27 cents to have same economic impact as SEAI gran<sup>t</sup> for typical 2 kW system with 20% export) [9]. In 2007, the number of microgeneration installations in the UK was estimated at less than 100,000, but between 2009 to 2014 over 730,000 systems were installed, 88% of which are solar PV [8]. The renewable microgeneration technologies adoption has resulted in significant annual savings in energy running cost [23]. The introduction of feed-in tari ff (FiT) support has encouraged greater numbers of installations [24] and the global solar PV market has grown significantly, leading to a reduction in capital costs in the UK between December 2010 and September 2012 of around 50%. Consumer cost reductions are mostly likely to occur through market development with increased number of installations or policies to reduce capital costs such as capital grants and low interest loans which are repaid through FiT payments, potential adopters are also driven by the desire to show others their environmental commitment to reduce GHG emissions and earning or saving money through incentives and reduced fuel bills [24].

The most important barriers to adoption in the UK were the higher capital costs compared to annual energy savings and payback period, the absence of subsidies and the regulatory requirements. Other factors include home ownership, the level of available capital for investment and size of house or the suitability of microgeneration technologies [24]. There is also the loss of utility to households caused by space requirements (e.g., roof top space to install solar PV and/or solar thermal, fuel storage-hot water tanks and gardens dug up to install ground heat pumps etc.). These costs would be reduced by concentrating policy on new houses, where microgeneration technologies could be designed into the house at construction at a lower cost [23].
