Irish Solar Investment

The Employment and Investment Incentive Scheme (EIIS) is an Irish government initiative that provides income tax relief to individuals who invest in qualifying Irish SMEs (small and medium enterprises). It encourages investment in early-stage and growth companies to support job creation and economic development.

Shares must be held for a minimum of four years to keep the tax relief. For this investment, investors’ capital is modelled to be returned between years four and six, through redemption by the company or a sale of the operating projects. Timing could be earlier or later and is not guaranteed, so treat this as a medium to long-term investment.

The minimum investment is €10,000. Individuals can claim EIIS relief on up to €1,000,000 a year, a limit shared across EII-type reliefs. Your tax adviser can confirm how much relief you can use.

This investment qualifies for 50% EIIS income tax relief, the highest rate available, because the solar project companies are new and have not yet traded. For a higher-rate taxpayer, that means up to €50,000 back for every €100,000 invested. Relief is subject to Revenue rules, a four-year minimum holding period and your having enough income tax liability to use it; standard-rate taxpayers receive less.

The relief reduces your income tax bill, so it can be used against tax due on PAYE earnings, self-employed income, rental income from property held in your own name, deposit interest and ARF distributions.

BVP sources and assesses each project. Technical due diligence is carried out by an independent engineering consultancy, legal advisers review planning, land and grid arrangements, and every investment requires approval by BVP’s Investment Committee before completion.

This is a medium to long-term investment in unquoted companies with no early exit, and you could lose some or all of your money. Solar-specific risks include delays in securing a government-backed revenue contract, planning or grid issues before construction, and construction delays. Most of the expected return comes from the tax relief, which can be lost if a company stops qualifying under EIIS. Repayment of capital depends on the companies’ ability to pay. Do not invest money you cannot afford to lose.

Any Irish taxpayer (PAYE or self-assessed) with an income tax liability can invest, subject to suitability and eligibility checks. To receive the full 50% relief you need to pay income tax at the higher rate and have enough liability to use it. Always take independent tax advice before investing.

After your investment you’ll receive a Statement of Qualification (your EIIS certificate), which you use to claim the relief through Revenue’s online services, ROS or myAccount.

No. Your capital is at risk. Before investing, registered investors receive a full Information Memorandum and subscription documents setting out the investment, its risks and its terms. To be added to the list, register your interest or email hello@bvp.ie.

There are two planned routes. From year four, the companies can redeem investors’ shares, funded from project cash flow and refinancing. Alternatively, the operating projects can be sold to an infrastructure buyer, with EIIS investors paid first from the proceeds. Neither is guaranteed, and if shares are not redeemed they convert to ordinary shares.

It’s a direct investment. You subscribe for shares in the solar project companies through a private placement arranged by the BVP Investor Club. The BVP EIIS Fund may also invest alongside you, and BVP is leading the equity terms.

There is a one-off administration fee of 3%, paid by investors at the outset. Other fees to BVP (a completion fee and an annual monitoring fee) are paid by the project companies and included in the project costs.

The solar farms are targeting government-backed RESS revenue contracts, which set a guaranteed price for the electricity they generate over a long period. That income, together with project refinancing or a sale, funds the return of investors’ capital.

It can apply in a later round, which may delay that project by up to 12 months. Because the investment spans more than one project, a single unsuccessful outcome doesn’t determine the whole investment.