- Ireland is planning to abolish VAT on new solar panels installed by households
- The decision, once made formal by the government, will help households save €1,000
- Including SEAI grant of €2,400, it will also bring down the total payback time for solar systems
Ireland has decided to abolish Value Added Tax (VAT) on new solar panels and their installation for households which is estimated to save them €1,000, announced the country’s Minister of Environment Eamon Ryan on his social media account.
According to local media reports, the current VAT rate is 23% and will be lowered to 0% once the government discusses it in the Spring Finance Bill and signs on the rule. It is estimated to bring down the average cost of installation from €9,000 to €8,000.
Ryan added that with the addition of the Sustainable Energy Authority of Ireland (SEAI) solar grant of up to €2,400, total cost of solar panels and their installation should go down further to about €5,600.
According to the Irish Solar Energy Association (ISEA), that welcomed the move’, this will bring down payback period of solar systems. “Clean energy hits the rooftops of every building in Ireland every day. Now with this announcement more of this energy can captured and converted into useable electricity. This announcement is a very positive development. We look forward to continuing our work with government to deliver more sensible climate solutions,” said ISEA CEO Conall Bolger.
Ireland aims to install 5 GW of total solar energy capacity by 2025. According to the International Renewable Energy Agency (IRENA), till the end of 2022 Ireland’s total installed solar PV capacity was only 135 MW.
Before Ireland, Romania enacted a law in January 2023 to bring down VAT on solar panels and their installation to 5% from 19% towing the line that the European Council set in December 2021.
Earlier Montenegro too brought down VAT on solar panels from 21% to 7%.
Source from Taiyang News
The information set forth above is provided by Taiyang News independently of Alibaba.com. Alibaba.com makes no representation and warranties as to the quality and reliability of the seller and products.