In some exciting news for solar energy enthusiasts, the European Union has abolished the value-added tax (VAT) on solar panels. As a result, the installation costs of solar panels are expected to drop by around €1,000. This has been hailed as a major boost to the renewable energy sector, as it will make it much more affordable for households and businesses to switch to solar power. In this article, we will explore how this change in VAT rates is likely to impact the installation of solar panels throughout Europe, and what it could mean for the future of renewable energy.
The VAT on initial costs for households installing solar panels in Ireland will be completely abolished, resulting in an extra saving of €1,000. Green Party leader Eamon Ryan aims to encourage more people to switch to renewable energy by reducing the VAT to 0% on the supply and installation of solar panels on homes and public buildings. The government is expected to sign off on this move soon, reducing the installation cost from an average of €9,000 to €8,000. Together with the SEAI solar grant, the total average home solar installation cost will drop to approximately €5,600. Ryan said that the VAT change would give people cheaper renewable energy and reduce their payback period by nearly a year. The government also plans to place solar panels on all schools by 2025. Ryan aims to reach 5GW of solar energy by 2025 and 8GW by 2030, which is enough to power 750,000 homes. The VAT change will be introduced in the Spring Finance Bill after an amendment to the EC VAT Directive. There are almost 50,000 Irish homes with installed solar panels, and this number is expected to continue growing as the technology becomes mainstream.
In conclusion, the abolishment of the VAT rate on solar panel installations is great news for homeowners and businesses alike who have been considering making the switch to renewable energy sources. With the expected drop in installation costs by €1,000, it is likely that more people will be inclined to invest in solar energy and we can only hope that this will encourage further progression towards a more sustainable future. As governments around the world are now actively pursuing measures to reduce carbon emissions, this latest development in Ireland is a testament to the growing importance of renewable energy in the fight against climate change.
