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Government Approves Zero VAT Rate for the Supply and Installation of Solar Panels

THE GOVERNMENT HAS announced that the VAT rate for the supply and installation of solar panels will be abolished from 1 May. 

The Department of the Environment has stated that reducing the rate from 23 to 0% will bring the average cost of installing solar panels down by €1000, meaning that consumers will pay €8000 rather than €9000. 

The Department has stated that this permanent change is being made in order to help families and businesses deal with “high energy prices and cost of living challenges”. 

The change will cost the Government €19m annually, according to estimates from the Department of Finance. 

Minister for Finance Michael McGrath said that he believes that scrapping the VAT rate on solar panel installation will encourage more people to avail of the technology. 

Government’s Commitment to Help Households

“This measure underlines the Government’s commitment to help households to save money on their energy bills and reduce their carbon footprint and contribute positively to our national climate change targets,” he said. 

Minister for the Environment Eamon Ryan said that the announcement is another step towards “cleaner, cheaper, renewable energy”. 

He outlined other measures that the Government has taken to incentivise homeowners and businesses to opt for solar panels: “We have removed planning permission requirements to install solar panels on residential homes. Our Micro-generation Support Scheme is continuing to prove very successful, following record levels of installations supported in 2022 via the Domestic Solar PV Scheme – operated by the Sustainable Energy Authority of Ireland.”

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