On Wednesday the 5th of April the government accepted a report stage amendment to the Finance Bill 2023 proposed by Minister of Finance Michael McGrath. The Bill gives legislative effect to the taxation measures that the government recently proposed with the aim of continuing to help people and companies deal with the problems of high energy costs and cost of living issues. Recently, a new solar panel-related measure was approved.
With a zero rate of VAT now available to consumers, it is sought to reduce the average cost of the supply and installation of solar panels for customers by €1,000 and would thus help support households reducing their electricity bills, according to the Department of the Environment, Climate and Communications. The Department of Finance has estimated that the measure will cost €19 million annually.
Speaking about the introduction of this VAT amendment, Minister for Finance Michael McGrath stated:
"This measure underlines the government’s commitment to help households to save money on their energy bills and reduce their carbon footprint and contribute positively to our national climate change targets.”
At Activ8, we believe that this is a significant step in the right direction for the solar industry, and it will undoubtedly provide a much-welcomed boost to the adoption of solar energy across the country. Especially at this crucial juncture, with our collective efforts as a nation to meet ambitious solar targets. Targets outlined as part of the most recent Climate Action Plan published by this government. Our CEO Ciaran Marron had this to say about the introduction of the zero VAT rate:
"This is great news for the Irish solar industry as a whole. Having been working hard over the past number of weeks alongside the ISEA and government agencies to get a clearer picture of how this would be rolled out, we are absolutely delighted Irish homeowners are being put in a position to succeed with their own renewable energy targets and generate their own clean, green electricity. This measure reduces the cost of installation and that is a great thing for Activ8 customers and Irish homeowners at large."