VAT Changes on Solar to Accelerate ‘Rooftop Revolution’

Proposed changes in the VAT rates levied on solar panels will help ‘accelerate our Rooftop Revolution’, according to Green Party TD, Marc Ó Cathasaigh. Measures being brought to cabinet next week ahead of the Finance Bill could save households up to €1000 on installation costs, with proposals to cut VAT rates on solar panels to zero percent.

Dep. Ó Cathasaigh has been pushing for this change since it was made possible by an EU Council Directive in Dec. 2021.

‘The taxation toolkit passed by the EU Council allows for the zero VAT rating of some goods with the potential to help our in our fight against Climate Change. To me, it makes sense to drive down the cost of this investment for households in any way we can, especially at a time of high energy prices. If we can help people make the change from expensive imported fossil fuels to electricity generated on their own rooftop, that’s good both for our economy and our environment.’

The move is the latest in a series of changes aimed at making solar easier to afford and easier to install, according to the Tramore-based TD.

‘Since entering Government, the Green Party have been working hard to put solar solutions in place for homes, small businesses and even schools. We’ve removed planning restrictions for rooftop solar panels on homes and introduced a feed-in tariff so people get paid for extra energy they produce. There are grants for householders, but also businesses, community buildings and farmers to get involved. And we’ve funded a programme that will see solar panels installed on every school in the country.’

‘What we’re seeing is a Rooftop Revolution, where more and more people are taking the opportunity to generate electricity domestically, something that’s good for our pockets, good for energy security and good for the wider environment.’