VAT rate on new solar panels cut to zero saving households €1,000 on installation

Mr Ryan said the VAT change will give people cheaper renewable energy and reduce their payback period by nearly a year, from seven years to 6.2 years, based on an average 4.5KW installation for homes. Picture Dan Linehan

Households installing solar panels are to save an extra €1,000 as the VAT on initial costs is to be completely abolished.

In a bid to encourage more people to opt for renewable energy, Green Party leader Eamon Ryan is slashing VAT to 0% on the supply and installation of solar panels on homes and public buildings.