Zero VAT on Solar Panels

Zero VAT on Solar Panels

TD believes VAT reduction will bring the Rooftop Revolution to Waterford, with householders across the Southeast set to benefit from ‘our solar potential’.

Green Party TD for Waterford Marc Ó Cathasaigh believes a VAT reduction will bring the Rooftop Revolution to Waterford, with householders across the Southeast set to benefit from ‘our solar potential’. He was speaking after the abolition of VAT on solar panels which came into effect on May 1st . The change, which was secured at Cabinet by the Green Party will save householders approximately €1,000 upfront and allow the cost of the panels to be paid back within six years instead of seven.

It will now be easier and more cost effective for individuals and families in Waterford to make the change to solar power and experience the benefits of cheaper and cleaner electricity generated from the sun. The VAT change will cost an estimated €19 million but will bring energy security, environmental benefits and cost savings to households throughout the country. It will see an end to VAT “on the supply and installation of solar panels for homes and public buildings” according to Deputy Ó Cathasaigh.

“The Green Party has been campaigning for a number of years to make it easier for people to put solar panels on their roofs, so I’m delighted that cabinet has approved this latest step which will see Waterford householders benefit from our solar potential here in the South East. Solar power, on individual rooftops and on a larger scale on school, farm and commercial buildings, has huge potential in supplying our energy needs and helping to achieve the targets in our Climate Action Plan”.

“Here in Waterford, in the Sunny South East, we have an excellent solar resource and this change makes it more cost effective for Waterford householders to benefit from this natural energy source. The Green Party has removed the need for planning permission for the installation of solar panels, we are providing free solar panels for all schools and this latest step with the removal of VAT will make it easier and more cost effective for householders to take this step.”

The Tramore based TD went on to say that “When combined with the SEAI solar grant of up to €2,400, the total average cost of home solar installation will be reduced to approximately €5,600 from €9,000. More than 50,000 homes in Ireland currently get some of their hot water or energy from the sun with 17,000 solar installations taking place just last year alone. Making solar energy more accessible to everyone has been a long held Green Party policy and in Government, we have consistently placed solar energy at the centre of Government plans to increase the amount of renewable energy generated in Ireland. Electricity generated from the sun or the wind is cleaner, cheaper and it reduces pollution while bolstering our energy security.”

“An added benefit to Waterford homeowners and businesses installing solar panels is the ability to sell excess electricity generated back to the national grid through the Micro-Generation scheme which is already seeing thousands of householders signing up to receive payments from their energy providers. The abolition of VAT on solar panels comes as we plan our rollout of solar panels on schools which starts this summer which will see them producing energy year round and selling it back to the grid during the summer months when most energy will be produced but school buildings are empty.”

“To meet our climate targets, we want to be leaders with the Solar Rooftop Revolution and making if more affordable for people to make the switch to effective and cheaper solar power is an important part of that plan.”