The Government has announced that the VAT rate for the supply and installation of solar panels will be abolished from 1st May 2023.
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 €1,000, meaning that consumers will pay €8,000 rather than €9,000.
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.
“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”.
This measure comes soon after the Government removed planning permission requirements to install solar panels on residential homes & businesses & the introduction of buy-back for excess renewable electricity.