Ireland to abolish value-added tax on the supply and installation of solar panels
The Irish government is expected to sign and approve this measure this week.
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.
The Irish government will sign this measure this week, which means saving about 1000 euros and reducing the average installation cost from 9000 euros to 8000 euros.
Combined with a maximum SEAI solar subsidy of 2400 euros, this means that the total average household solar installation cost will further decrease to approximately 5600 euros.
Ruian stated that this move will provide people with cheaper renewable energy and shorten the investment payback period from 7 years to 6.2 years (based on an average installation of 4.5KW), shortening it by nearly a year.
He stated that this is another step for Ireland towards cleaner, cheaper, and renewable energy.
This is achieved on the basis of our planned energy-saving renovation projects and micro power generation plans. Currently, thousands of households have signed agreements to sell their excess renewable energy back to the grid, "he said.
The Irish government has set a target of reaching 5 gigawatts of solar energy by 2025 and increasing it to 8 gigawatts by 2030.
In addition, it plans to install solar panels in all schools across the country by 2025.
Just one gigawatt is enough to power approximately 750000 households. The solar rooftop revolution is happening, and the government can now help people transition more affordably to efficient and cheaper solar energy, "added Ryan.
After the recent revision of the EU value-added tax directive, changes to value-added tax will be introduced in the spring fiscal bill.
Conall Bolger, CEO of the Irish Solar Energy Association (ISEA), welcomed this statement and stated that investing in solar energy is one of the most proactive and proactive measures for individuals or households to respond to the climate crisis.
He said, "Before canceling the value-added tax on household solar energy, some measures were introduced last year to eliminate the need for planning permits and allow households to sell excess electricity back to the grid
The combination of these measures means that adopting solar energy has never been so easy, nor has it been so cost-effective. This will make it easier for struggling consumers to participate in the solar revolution. Customers can reduce carbon emissions and achieve permanent savings in energy bills
Ireland's current goal is to achieve 5 gigawatts of solar energy by 2025, an ambitious goal that will require households across the country to 'use solar energy'
Nearly 50000 Irish households have installed solar panels, and as technology becomes cheaper and more mainstream, the growth rate of this number is expected to accelerate.
Since October last year, the installation of solar panels in houses and certain non residential buildings does not require planning permission.
However, Federal President of Micro Renewable Energy, Pat Smith, recently stated that due to systemic challenges in applying for solar panel subsidies, some businesses and farmers have encountered difficulties in the application process.
He stated that Ireland needs a "simple and easily accessible subsidy support system that enables people to make positive decisions now and choose to use renewable energy instead of at some point in the future".
