Electricity will be generated via small-scale technologies such as wind turbines and solar power, with the potential to sell excess power back to suppliers.
Grant support to meet 50% of the initial start up costs will be made available for the installation of microgeneration systems in approximately 50 trials to be conducted nationwide.
Speaking at the annual SEI Energy Show at the RDS, Minister Ryan said: "We are starting to make great strides with large-scale renewable energy, which will impact on power generation on a national level. Today, we focus on small scale generation in commercial sites and domestic dwellings."
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With €2 million being provided in 2008 by the Department of Communications, Energy and Natural Resources, the programme will be administered by Sustainable Energy Ireland in conjunction with key stakeholders, including the Commission for Energy Regulation, ESB Networks and electricity suppliers.
The scheme follows a change in regulations last year allowing people to sell electricity back to the grid. It will provide the groundwork for consideration of a set feed in tariff for electricity produced through microgeneration.
The Minister added: "This scheme will empower electricity users to take action. The change in regulations last year has cleared the way for Irish people to sell electricity back to the national grid. This, along with today's announcement and the roll-out of smart meters will ultimately mean that everyday in every home people can use power in the most efficient manner possible.
"We know from international experience that microgeneration can provide a sustainable, reliable and affordable alternative to the traditional methods of power generation. It is time to provide such an alternative here."
(VB/JM)
