VAT will no longer be charged for solar panel installations in Ireland
Updated April 10, 2023
According to figures from the Department of the Environment that will bring down the average cost of installing solar panels by €1000. On a typical system that will mean a decrease in price from €9,000 to €8,000.
The “permanent” abolition of VAT, is being done in order to help families and businesses deal with “high energy prices and cost of living challenges”. At current electricity price levels, it means customers installing solar now will earn back their investment in 6 years rather than 7.
Coupled to recent decisions to remove the requirement for planning permission for the installation of solar on private homes, the VAT change is a significant step toward making solar affordable for all.
Minister for the Environment Eamon Ryan took the opportunity of the VAT announcement to draw attention to a third government initiative that is beginning to take hold – the Micro Generation Support Scheme. The Scheme, written into Ireland’s Climate Action Plan, allows individual households to sell excess renewable energy back to the Grid. The initiative, described by the Minister as “very successful”, created a structure under which excess energy generated by things like solar panels could be sold to the consumer’s energy supplier at a fair price.
“With thousands of householders also signing up,” Ryan said last week, “there is now an even greater opportunity for citizens to be part of the energy transition and become active energy consumers, whilst also supporting the electricity grid and strengthening Ireland’s energy security.”
The Government plans to generate 2.5GW of the country’s energy from solar by 2030. The Micro-generation Support Scheme (MSS) aims to deliver 380MW of that total. Depending on panel size, this equates to over 1 million solar panels on approximately 70,000 buildings. If it’s successful that’s good news for both consumers and the environment.
The government’s Clean Export Guarantee (CEG) stipulates that households will receive a competitive market rate when they sell their excess electricity back to the national grid,
To be eligible for payments consumers must first register their system with ESB networks. There’s a form (of course) and it is something your solar energy installer can and should help with.
Once you have notified ESB, you’ll need to discuss how to apply for the Micro-Generation Scheme with your own energy provider, and their competitors. And make sure to ask them what rate they will be paying for any electricity you supply.
Investing in solar PV systems can bring many benefits, including reduced energy bills, increased energy independence, and a reduced carbon footprint. If you are interested in installing a solar PV system, it is worth exploring the different grant options available and seeking professional advice from one of our solar energy advisors.
Feel free to contact us for more information, we’re here to help.