Solar roofs can be a big asset to energy independence , Source: Daria Nepriakhina / Unsplash

Ireland to drop VAT on solar supply and installation for consumers

Ireland to drop VAT on solar supply and installation for consumers

The move is set to make the average solar installation cheaper by about 1,000 euros

Yesterday, Irish Environment Minister Eamon Ryan announced a new government plan to reduce the cost of solar installations for consumers by as much as 1,000 euros. These savings would come through the government waving VAT on the supply and installation of photovoltaic (PV) systems on homes and public buildings.

As the RTÉ reports, there are around 50,000 homes in the Republic of Ireland which benefit from clean energy through photovoltaics (PV). Apart from lowering energy prices for consumers, renewables help to reduce CO2 emissions by introducing more clean energy into the mix.

Additionally, they contribute to energy independence, as consumers can take control of their own energy production and reduce overall dependence on fossil fuel imports. The proposed change will be brought to Cabinet this week.

Making solar installations even more attractive

According to Minister Ryan, the cost of an average PV installation will drop from 9,000 euros to 8,000 euros. This would, in turn, reduce the payback time on the initial investment from 7 years to 6.2 years. This means that approximately after year six, the installation will start generating money for its owner, turning a profit.

Additionally, he pointed out that the Sustainable Energy Authority Of Ireland already provides grants of up to 2,400 euros for private homes, which can drop the total average of an installation to about 5,600 euros.

At the moment, there are about 50,000 homes in Ireland benefiting from green energy, while authorities hope that this extra reduction would make the concept more mainstream.

Additionally, Minister Ryan explained that this legislation would come on the back of a push to add renewables to all Irish schools by 2025. This initiative is set to start this summer break.



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