*1.4. Financial Support Mechanism*

Many support mechanisms have been employed in France, Germany, Greece, Italy and the UK to help increase the uptake of solar PV systems such as capital subsidies, VAT reduction, tax credits, renewable portfolio standards, net-metering, FiT etc. In 2012 the most popular support mechanism in terms of market share were FiTs (60%), capital subsidies and tax rebates (20%), self-consumption (12%), renewable portfolio standards (4%) and net-metering (2%). The electricity compensation schemes (self-consumption and net-metering) have increased their uptake in the last decade, rising from a 4% historical value to 14% in 2012. The reduction in PV costs has resulted in the reduction or elimination of the FiT mechanism instead introducing self-consumption rules [25].

In Ireland several initiatives have been taken to improve uptake of solar PV systems with limited success. The primary support mechanisms for installation of renewable electricity infrastructure are the Renewable Energy Feed-in Tariff (REFIT) schemes which provides a minimum price for each unit of electricity exported to the grid over a 15-year period giving certainty to renewable electricity generators. Currently solar PV systems are not supported under the REFIT scheme [26] however, the new Renewable Electricity Support Scheme (RESS) will provide opportunities for incorporating solar PV, bioenergy and wind within a cost competitive framework.

To deliver Ireland's renewable electricity ambitions to 2030 including reducing the gap to reach 2020 renewable energy targets and accommodating microgeneration by 2021, the Government of Ireland has indicated the key outcomes in energy sector between the years 2019–2021 will include the increased renewable energy usage in the electricity sector via increased levels of microgeneration. Solar energy has the potential to provide a community dividend while maintaining basic paymen<sup>t</sup> schemes, subject to EU commission approval [27].
