VAT on solar panels is to be scrapped under plans going to Government this week.
The move will bring down the cost of installing solar panels by around a thousand euro.
Minister Eamon Ryan will seek approval this week to scrap the VAT on solar panel installation for both private and public buildings.
It’s expected to reduce the average cost of installation from nine thousand to eight thousand euro. When coupled with a maximum SEAI grant of 2,400 euro it means the cost on an average project will be down to about 5,400 euro.
It also reduces the payback period - meaning the time it takes for the savings from solar panels to have paid for themselves - from 7 to 6.2 years based on a 4.5kw installation
The changes will be introduced in the Spring Finance Bill.
