New 0% VAT rate on solar panels

The VAT rate on the supply and installation of solar panels in private homes has been reduced to zero from 1st May 2023.

This will result in a 13.5% reduction in the cost of installing solar panels for our customers.

This measure is possible due to amendments made to Annex III of the VAT Directive in 2022, which added a number of new categories to which Member States can apply a zero or reduced rate of VAT. One such option is to apply a zero rate within category 10c which is for the ‘Supply and installation of solar panels on and adjacent to public and other buildings used for activities in the public interest, housing and private dwellings’.

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