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  • Writer's picturePippa Hackett

Time for Solar is Now

I understand that Government is preparing to sign off on a VAT reduction to 0% on the purchase and installation of solar PV panels on homes. I am excited about this VAT reduction to 0% as I believe it will help prospective buyers to make the leap. This is something I and colleagues have been working towards.


I believe many households, my own included, have been considering solar PV but haven't taken the next step for a variety of reasons. I believe this move, to a zero VAT rate on the supply and installation of solar PV, will encourage people to contact suppliers and get the project moving. It is a significant opportunity for homeowners to reduce energy costs and should reduce payback on the project cost to as little as 6 years. From that point all of the electricity generated will be at no cost to the homeowner.

I am aware that many suppliers have a lead time from initial site assessment to fitting the system on the roof and generating power. There is no time like the present to benefit from the longer daylight hours of summer /autumn 2023.


There is also no better time to upskill in the area of renewable energy and retrofit as there so many opportunities in this area and this will continue to be the case for the foreseeable future.


Solar PV, which generates electricity for own use or sale of excess power back to grid, works very well in Ireland. It is daylight and not sunshine that is the significant factor. This change is estimated to represent a saving of €1,000 on the average domestic system. It comes following the removal of the need for planning permission in almost all situations and will contribute savings alongside the SEAI grant for solar PV.


I expect this VAT change to be introduced in the Spring Finance Bill following a recent amendment to the EU VAT Directive. I encourage people to contact SEAI registered contractors as soon as possible to get the ball rolling. Remember, approval for an SEAI grant must be in place before works commence.

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