In recent years, solar panel installations have become increasingly popular among environmentally conscious homeowners, as they provide a sustainable and cost-effective source of energy. Now, the news that the Irish government is set to abolish VAT rates on solar panel installations will come as welcome relief for anyone considering making the switch. As a result, the installation costs of solar panels are expected to drop by €1,000, making the investment even more accessible and affordable for homeowners. This move represents a significant step in Ireland’s commitment to reducing carbon emissions and moving towards a more sustainable future.
The Green Party leader Eamon Ryan has decided to eliminate VAT on the installation and supply of solar panels on households and public buildings. This move is anticipated to lead to a reduction in installation costs, bringing the average cost to around €8,000 from €9,000. When combined with the SEAI solar grant of up to €2,400, the average cost is anticipated to be around €5,600. This move is designed to motivate more people to opt for renewable energy. Mr. Ryan has stated that this change will give cheaper renewable energy to people, bringing down their payback period by about a year, from seven to 6.2 years, for an average 4.5KW home installation. The Government intends to introduce solar panels on all schools by 2025, as part of its journey to cleaner and less expensive renewable energy. The VAT change is scheduled to be introduced in the Spring Finance Bill following a recent amendment to the EC VAT Directive. Over 50,000 Irish homes have already installed solar panels, and this number is anticipated to grow. The Irish Government has set a target to achieve 5GW of solar energy by 2025, which will be increased to 8GW by 2030.
In conclusion, the recent announcement of the abolishment of VAT on solar panel installation marks a significant step towards making sustainable energy more affordable and accessible for everyone. With installation costs dropping by €1,000, consumers now have a greater incentive to invest in solar panels and contribute towards a greener future. As we continue to take steps towards renewable energy, it’s important to remember the positive impact it has on both the environment and our wallets. Let’s hope to see more positive changes like this in the near future.
