In December, the average base price for a litre of milk reached 36.35c/L, according to the Agriland/ICMSA Milk Price Tracker, representing a fall of 35% from peak prices in June 2025.

With costs of production estimated between 37c-41c/L, base milk prices are now below production costs for many farmers.

Falling milk prices naturally cause dairy farmers to tighten their belts and defer capital expenditure - including on solar PV.

But paradoxically, this is exactly when the case for solar is strongest: when margins are squeezed, every fraction of a cent saved on production costs matters more, not less.

In Ireland, dairy cows consume an average of 350 kilowatt-hours (units) of electricity annually. At current electricity prices - factoring in a mix of day and night rates - this works out at approximately €80 per cow per year.

The majority of electrical energy used on dairy farms is consumed by the vacuum pump, milk cooling, and water heating systems.

Typically, these three operations combined account for almost 80% of the electrical energy used within the dairy unit.

The other 20% is consumed by lights, scrapers, augers, parlour heaters, and other equipment.

On a 100-cow herd, this represents an annual electricity bill of around €8,000.

Dairy farmers with solar installed by ProSolar have seen electricity cost reductions averaging 80%. This saving puts €6,400 back in the farmer's pocket each year - €64 per cow.

An average Irish dairy cow produces 5,500L of milk per year, so the €64 saving per cow equates to 1.16 cent per litre of milk produced.

Teagasc is forecasting a net margin of just 11.5c/L for 2026. Even taking a conservative 1c/L reduction in production costs from solar PV, that represents almost 9% of your entire profit - every year, for 20+ years, regardless of what milk price does.

Put simply: deferring solar to "wait for better times" costs you money every single month you delay.

TAMS

TAMS 3 approval delays have left farmers waiting months for confirmation.

And while the 60% TAMS 3 grant represents an extraordinary opportunity, dairy farmers do not need TAMS to make solar stack up.

Between the SEAI Non-Domestic Grant, VAT reclaim, and Accelerated Capital Allowances, a sole trader farmer can achieve an effective cost reduction of up to 60% without TAMS.

Farms operating as limited companies can still see effective cost reductions of over 40% - either way, you are looking at two-to-three-year paybacks on average.

Do not write off the non-TAMS route - it gets you generating faster, and the numbers still work. As the weather gets brighter, every month you wait costs roughly €500 in electricity you could have been generating yourself.

The ability for a farmer to achieve the savings mentioned above depends on them getting honest technical advice to get the best system designed for their needs.

For example, batteries are essential to future-proof against probable falls in the prices being paid for selling electricity to the grid as was discussed in a previous Agriland piece by ProSolar.

Beyond this, the system will only save you money if it is running and will save you even more money if it is optimised for your electricity bills.

Installation quality is essential as well as being around to answer the phone when you call in a number of years’ time and require some advice or assistance.

ProSolar are your trusted partner with 40+ years of engineering heritage through our family business RVR Energy Technology. This means practical, no-nonsense guidance which is valued by farmers.

With the TAMS 3 deadline looming, if you are exploring solar and want to understand your options, or see how other farmers are making it work, our agri team are ready to talk.

Proudly supporting farmers across Ireland.