Solar VAT Reduction from 1st May 2023

Summary: Domestic Solar installations now at 0% VAT

On 1st May 2023, the rate of VAT on solar installations was reduced from 13.5% to 0%.

Savings to you: ~12% cheaper, and ~1 year faster payback

For you, the homeowner, this should equate to a reduction in price of about 12%. It also speeds up the payback period (the amount of time until the solar panels have paid for themselves) by about 1 year for an average solar installation.

We'll be updating our example solar install prices in due course with our own calculations for the new faster payback periods, too.

This really is great news, allowing more people to avail of solar electricity and speeding up Ireland's transition to a green economy.

The amendment was passed on Wednesday, April 5th, by the Irish government as part of the Finance Bill 2023 .

The details - what's included, what is not

0% VAT is for Private Dwellings Only

The new 0% VAT rate on PV solar panel installations applies to private dwellings only. Here's the official list from Revenue of what counts as a private dwelling:

houses (including a domestic residence on a farm)
apartments
duplexes
other types of private dwellings such as caravans and mobile homes that are attached to the ground in a way that effectively makes them immobilised

Please note the panels do not have to physically be on the private dwelling, 0% also applies if you are using a ground mounting system adjacent to your house.

The zero rate does not apply where the building is not a private dwelling such as a:

commercial building
industrial building
public building
retail shop
farm building
hotel
B&Bs*
guest houses used for short term-accommodation*
holiday home used for short term-accommodation*

Ancillary items also at 0% VAT

It's not just the solar panels that are zero rated, the whole PV solar system is included at 0% VAT, including ancillary items such as controllers, batteries, wiring, labour and alike.

EV chargers not included

The only exception is EV chargers, which remain at 13.5% VAT when supplied and installed (generally, as always with VAT there are some exceptions, but this is almost always the case to be at 13.5%)

*Mixed use buildings

Heads up there's a little complication where it comes to mixed use buildings.

If, for example, you use half your house as a B&B, and you live in the other half, then you can get half the installation at 0% VAT (assuming the electricity is used across both halves of the building).

Please just let us know when enquiring if you fall into this mixed use category and we can let you know the exact details for your circumstance.

Source of the full official details

You can find the full, official details from revenue here:

Revenue official guidance on Supplier and Installation of Solar Panels (April 2023)

Will this save me money?

I have a quote from before the change, but have not yet got my panels installed. Can I avail of this reduction?

Yes! If your quote is from before the VAT rate change, and was including the old VAT rate of 13.5%, then please just get in touch if and we will give you a new quote at the new 0% rate. That should give you a significant saving on the upfront cost of solar.

I already have solar panels installed

If you've already got your solar panels installed, then I'm afraid there are no VAT refunds, sorry. There's nothing in this new bill about back-dating. It only applies for installations that took place from 1st May 2023 onwards.