Ireland cuts supply and installation of solar panels VAT to 0%
Recently, the Irish government has announced the abolition of the VAT rate on the supply and installation of solar panels as of May 1.
Ireland’s Environment Minister Eamonn Ryan has announced that the VAT levied on the supply and installation of solar panels on homes and public buildings will be removed. 23% of the VAT rate will be reduced to 0%, which is expected to save households an extra €1,000 and shorten the payback period by almost a year. It is reported that the average consumer expenditure for installing solar panels in Ireland is currently around €9,000.
According to estimates by the Department of Finance, this tax exemption will cost the government 19 million euros per year. However, Finance Minister Michael McGrath said he believes the removal of VAT on solar panel installations will encourage more households and businesses to take up such products.