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Ireland 0% VAT on solar panels

Ministry of Finance confirms terms of zero-rating for domestic solar panel installations – previous rate was 23%

Ireland has joined the growing number of EU states that has taken advantage of new reduced EU VAT freedoms to zero Value Added Tax on the sale and installation of solar panels for private dwellings.

The reduction from 23% to 0% came into effect from 1 May 2023. The cut was first announced in the 2023 Finance Bill. The tax cut will cost and estimated €19 million per annum based on the reduction from the current standard rate of 23%.

Northern Ireland solar panel VAT was reduced to 0% on the same date as part of the post-Brexit Windsor Framework agreement.

The Department of the Environment, Climate and Communications has estimated that if a zero rate of VAT was passed on to consumers, it would reduce the average cost of the supply and installation solar panels for consumers from €9,000 to €8,000 and would thus help support households reducing their electricity bills.


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