Dáil Éireann Debate, Tuesday - 18 April 2023
197. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he will provide an update on the forthcoming introduction of a 0% VAT rate on the supply and installation of solar panels; and how the VAT will be treated with respect to the current grant offering. [17316/23]
View answerThere are a wide range of capital supports funded by my Department and administered by the Sustainable Energy Authority of Ireland (SEAI). The Micro-generation Support Scheme (MSS) provides capital grants through the SEAI for both domestic and non-domestic applicants (under the Domestic and Non-Domestic Solar PV schemes respectively) for Solar PV installations up to 6.0kW, primarily for self-consumption. Grant amounts are €900/kW up to 2kW and an additional €300/kW between 2kW and 4kW; which brings total grant levels up to a maximum of €2,400.
The grant awards are based on the size of the installation, not on the costs. Moreover, the grants are applied for by the applicant and are paid directly to the applicant. As such, the recent announcement of a 0% VAT rate on the supply and installation of solar panels does not impact on the current grant offering.
However, it is expected that the new 0% VAT rate will be of significant benefit to homeowners, as it will reduce the average cost of a domestic solar PV installation by approximately €1000. This is a permanent change that will come into effect from 1 May 2023. 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.
