On 1st May 2023, the rate of VAT on solar installations was reduced from 13.5% to 0%.
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 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:
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:
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.
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%)
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.
You can find the full, official details from revenue here:
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.
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.
Get a quote to see what going solar could save you. It's quick, easy, and free.
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