Energy

McGrath to speed up abolishing Vat rate on solar panels to avoid mass cancellation of orders

The 23 per cent VAT rate will be cut to zero following the EU’s decision last year to allow member states to do this to encourage the growth of renewable energy

The zero Vat rate is expected to bring the average cost of a 4.5 kilowatt solar panel installation with around ten panels down from €9,000 to €8,000. Picture: Getty

Michael McGrath, the Minister for Finance, is going to accelerate the abolition of Vat on solar panels to avoid mass cancellations of customer orders.

The Business Post reported last week about the government’s plans to abolish Vat on solar panels in a move which will reduce the typical cost for homeowners by €1,000.

The 23 per cent VAT rate will be cut to zero following the EU’s decision last year to allow member states to ...