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Solar Industry welcomes elimination of VAT on domestic solar installations

Irish Solar Energy Association

2 Apr 2023

The Irish Solar Energy Association (ISEA) is delighted by the announcement by Minister Eamon Ryan that government are set to introduce a 0% VAT rate for the installation of domestic solar panels. ISEA, who had campaigned for the removal of VAT, has said it will help more households invest in their own clean energy future.

Welcoming the decision, Conall Bolger, CEO of ISEA said “Investing in solar is among the most positive and proactive steps any individual or household can take to combat the climate crisis. The removal of VAT on domestic solar follows measures introduced last year to remove the need for planning permission and to allow households sell excess electricity back to the grid. This series of measures combine to mean that it has never been easier or more cost effective to embrace solar. It will make it a bit easier for hard pressed consumers to participate in the solar revolution. Customers can decarbonise and see a permanent saving on their energy bill.

“Ireland now has a target to deliver 5,000MW of solar by 2025, this ambitious goal will require households across the country ‘going solar’. There is already strong demand, with ESB Networks reporting 300 applications per week for microgeneration connections. Installing rooftop solar panels will pay for itself over time and with this announcement reducing the cost of a 4.5kW household system by up to €1,000, the payback period will be shorter. Best of all this will enable more households to consider investing in their own clean green energy.”

Concluding Bolger once again welcomed the decision: “Clean energy hits the rooftops of every building in Ireland every day. Now with this announcement more of this energy can captured and converted into useable electricity. This announcement is a very positive development. We look forward to continuing our work with government to deliver more sensible climate solutions.”

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