Ireland Cuts Residential Photovoltaic Value-Added Tax to 0%

The Irish government will introduce welfare policies to encourage photovoltaic installation

Irish Environment Minister Emon Ryan has announced that the value-added tax levied on the supply and installation of solar panels for homes and public buildings will be abolished. The 23% value-added tax rate will be reduced to 0%, which is expected to save households an additional 1000 euros and shorten the investment payback period by nearly a year. It is reported that the average cost for Irish consumers to install solar panels is around 9000 euros.

According to the estimation of the Ministry of Finance, this tax exemption measure will result in the government spending 19 million euros annually. But Treasury Secretary Michael McGrath said he believes that canceling the value-added tax on solar panel installation will encourage more households and businesses to adopt such products.

The solar revolution has arrived: No planning, excess electricity is monetized, and expenses are reduced.

According to multiple Irish media reports, lawmakers will discuss this new measure as part of the fiscal bill this week.

The Irish Ministry of Housing, Local Government, and Heritage announced in October a revision of planning regulations to allow homeowners to install solar panels on their roofs without planning permission. The new regulations allow homeowners to use 100% of the roof surface to install photovoltaic systems, compared to only 50% previously.

Ireland supports rooftop photovoltaic facilities operating under its net metering plan through a tax refund plan. The plan aims to deploy approximately 380 MW of solar energy.