Farmers across Ireland have welcomed the introduction of dedicated funding for solar energy under the latest Targeted Agricultural Modernisation Scheme (TAMS III). Through the updated TAMS solar grants, applicants can receive up to 60% of the eligible cost of installing a solar PV system. But to access this support, it’s essential to understand how the Department of Agriculture calculates those costs.
Rather than relying on installer quotes, the government uses a standardised reference cost formula to determine how much of a system’s value can be funded through the grant. This approach ensures consistency across all applications and allows farmers to plan their investments more effectively.
What are TAMS reference costs and why do they matter?
The reference cost system sets a fixed value for each eligible component of a solar PV installation. These values are used to calculate the maximum amount that can be covered by a grant, regardless of the actual price quoted by the solar provider.
For example, if your installer quotes €20,000 for a system, but the reference cost comes to €17,000, your grant will be calculated based on the €17,000 figure. This means it’s essential to work with a provider that understands how to optimise your system within these guidelines.
Reference costs matter because:
- They establish a funding ceiling for grant calculations
- They prevent price inflation and ensure fairness for all applicants
- They help the Department of Agriculture manage its budget effectively
The reference cost formula for TAMS solar panels
According to the latest guidance reported by the Irish Farmers Journal, the Department of Agriculture has set the reference cost for TAMS-funded solar PV systems under TAMS III as follows:
- €1,441 per kilowatt (kW) of installed solar capacity
- Plus €1,849 to cover the cost of the inverter and controller
This simple formula allows farmers to estimate how much of their system cost will be eligible for grant support. The additional €1,849 accounts for essential components required to operate the system safely and efficiently.
TAMS grants are calculated using this formula, not on a per-project basis. As such, understanding this cost structure is key when planning a solar investment.
Example calculation based on a 10 kW solar system
Let’s say a farmer wants to install a 10 kW system. The reference cost would be calculated as:
- 10 kW × €1,441 = €14,410
- Plus €1,849 for inverter/controller
- Total reference cost = €16,259
If the farmer qualifies for a 60% grant, the Department would provide:
- 60% of €16,259 = €9,755.40
This amount would be paid after installation is completed and verified, making the up-front investment significantly more manageable for many Irish farms.
How the reference cost impacts your solar grant amount
It’s important to note that if your installer’s quote exceeds the reference cost, the grant will still only be applied to the reference value. For example, if the actual cost of a 10 kW system is €18,000, but the reference cost is €16,259, the grant will still be based on the €16,259 figure.
This means that choosing a solar provider who understands TAMS compliance is critical. An experienced provider will help you design a system that stays within reference cost limits while still delivering excellent performance and energy savings.
Other important factors to keep in mind:
- The maximum system size eligible for grant aid is 62 kW
- The system must be installed on a registered farm and used primarily for on-site consumption
- The application must be approved before installation begins to qualify for funding
EnergyServ’s role in TAMS-compliant solar installations
EnergyServ works directly with Irish farmers to deliver solar PV systems that are tailored for the TAMS III grant structure. By understanding the reference cost formula and its limitations, EnergyServ helps clients maximise their funding and avoid unnecessary overspend.
Services include:
- On-site energy assessments to determine optimal system size
- Custom system designs that align with reference cost thresholds
- Complete documentation and application support for TAMS
- Installation using approved components to meet Department standards
By partnering with EnergyServ, farmers can feel confident that their solar investment is eligible, efficient, and delivered by a team with deep experience in grant-funded installations.
TAMS solar grants are a powerful incentive, but success depends on good planning and proper execution.
Knowing the reference cost helps you plan with confidence
For Irish farmers looking to adopt solar energy through TAMS III, understanding the reference cost structure is an essential first step. With the Department of Agriculture offering up to 60% grant support based on a clear formula—€1,441 per kW plus €1,849—it’s easier than ever to estimate funding potential and make an informed decision.
Working with a solar provider like EnergyServ ensures that your system is both compliant and cost-effective. With the right guidance, TAMS-funded solar panels can offer long-term savings, lower emissions, and greater energy independence for farms of all sizes.
