Homeowners with solar panels could earn up to €400 a year under a new government initiative.

A proposal under its climate action plan would allow for excess electricity generated to be sold to the national grid.

The exact level of earnings would depend on the tariff set by government, with the proposal going to cabinet this month.

According to the Sunday Times, the move would help Ireland reach a 2030 climate target of 70 percent electricity production from sustainable sources.