Update: Domestic Solar installations now VAT-exempt as of May 1st, 2023, the VAT rate on solar installations has been reduced from 23% to 0%, making them VAT-exempt.
Benefit to homeowners: Approx. 12% cost reduction and faster payback As a homeowner, this means you can expect a price reduction of around 12% on solar installations, and it accelerates the payback period by approximately 1 year for an average installation.
We will soon update our example solar installation prices to reflect the new, faster payback periods based on our own calculations.
This development is excellent news, making solar electricity more accessible and expediting Ireland’s transition towards a sustainable economy.
The amendment was officially passed by the Irish government on Wednesday, April 5th, as part of the Finance Bill 2023.
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The details – what’s included, what is not
The new 0% VAT rate for PV solar panel installations applies exclusively to private dwellings, including houses, apartments, duplexes, and immobilised caravans or mobile homes.
It is not necessary for the panels to be physically placed on the dwelling itself; a ground mounting system adjacent to the house also qualifies. However, commercial buildings, industrial buildings, public buildings, retail shops, farm buildings, hotels, B&Bs, guest houses used for short-term accommodation, and holiday homes used for short-term accommodation are not eligible for the zero VAT rate. Ancillary items related to the solar installation also fall under the 0% VAT rate.
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Other important information
The entire PV solar system, including ancillary items like controllers, batteries, wiring, and labor, is subject to a 0% VAT rate. However, EV chargers remain at a 13.5% VAT rate when supplied and installed. For mixed-use buildings, where part of the property is used as a B&B or for other purposes, the VAT rate depends on the electricity usage across both halves of the building. For specific information regarding your circumstances, please inform us when making an inquiry.
The official details can be found on the Revenue website.
Can I save money?
If you have received a quote before the VAT rate change and have not yet installed your panels, you can definitely benefit from the reduction. Simply reach out to us, and we will provide you with a new quote reflecting the new 0% VAT rate. This adjustment will result in significant savings on the upfront cost of your solar installation.
I already have solar panels installed Unfortunately, if your solar panels have already been installed, there are no VAT refunds available. The new VAT rate only applies to installations carried out from May 1st, 2023 onwards, and there are no provisions for retroactive adjustments in the new legislation.
The provided guide prices cover both equipment and installation for PV solar systems. Additionally, incorporating a standard-sized solar storage battery (5.1kWh) would incur an additional cost of approximately €3,600 – €4,000, which includes the necessary hybrid inverter for battery compatibility.
It’s important to note that these prices serve as a general guide to help you determine your interest in discussing solar panel installation for your specific property.
As each property is unique, a personalized and complimentary quote would be provided after a site visit. This enables an accurate system design and precise calculations tailored to your requirements.
The numbers presented reflect realistic figures for average residential solar panel installations in Ireland in 2023.
Prices have not been rounded down, and production numbers have not been inflated. They represent average installations for household solar PV systems. We hope this information aids your decision-making process regarding the potential addition of solar panels to your home.
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Typical solar costs and performance
Here are the solar costs and performance numbers for a typical two-bedroom mid-terrace house in the midlands of Ireland. We’ve assumed a property like this can fit a 3.28 kWp (kilowatts peak) system on its roof.
| Cost to Homeowner: €4,237 That’s made up of a solar PV system price of €6,421, less the SEAI grant of €2,184 |
Solar Array size: 3.28 kWp That’s 8 x 410w panels, totaling 16.96 m2, which covers the majority of the south facing roof. |
| Generation: 2856 kWh / year The units of electricity generated per year. |
Rate of Return on Investment: 34.6% |
| CO2 saved: 994 kg / year That’s the same as 191 trees being planted, or 1 flight from Dublin to New York per year. |
Typical solar costs and performance
Here are the solar costs and performance numbers for a typical three-bedroom semi-detached / end-of-terrace house in the midlands of Ireland. We’ve assumed a property like this can fit a 4.25 kWp (kilowatts peak) system on its roof.t
| Cost to Homeowner: €5,617 That’s made up of a solar PV system price of €8,017, less the SEAI grant of €2,400 |
Solar Array size: 4.25 kWp That’s 10 x 425w panels, totaling 19.6 m2, which covers the majority of the south facing roof. |
| Generation: 3,724 kWh / year The units of electricity generated per year. |
Rate of Return on Investment: 34.6% |
| CO2 saved: 1,285 kg / year That’s the same as 9,885 trees being planted, or 1.5 flight from Dublin to New York per year. |
Typical solar costs and performance
Here are the solar costs and performance numbers for a typical three-bedroom semi-detached / end-of-terrace house in the midlands of Ireland. We’ve assumed a property like this can fit a 4.25 kWp (kilowatts peak) system on its roof.t
| Cost to Homeowner: €6,011 That’s made up of a solar PV system price of €8,411, less the SEAI grant of €2,400 |
Solar Array size: 5.1 kWp That’s 12 x 425w panels, totaling 23.5 m2, which covers the majority of the south-facing roof. |
| Generation: 4,715 kWh / year The units of electricity generated per year. |
Payback period: 4 years 9 months |
| CO2 saved: 1,627 kg / year That’s the same as 12,515 trees being planted, or 2 flight from Dublin to New York. |
Typical solar costs and performance
Here are the solar costs and performance numbers for a typical three-bedroom semi-detached / end-of-terrace house in the midlands of Ireland. We’ve assumed a property like this can fit a 4.25 kWp (kilowatts peak) system on its roof.t
| Cost to Homeowner: €6,789 That’s made up of a solar PV system price of €9,189, less the SEAI grant of €2,400 |
Solar Array size: 6.8 kWp That’s 16 x 425w panels, totaling 31.4 m2, which covers the majority of the south-facing roof. |
| Generation: 5,915 kWh / year The units of electricity generated per year. |
Payback period: 4 years 4 months |
| CO2 saved: 2,041 kg / year That’s the same as 15,700 trees being planted, or 2.5 flight from Dublin to New York. |
About the batteries
The headline figures provided assume the absence of a storage battery. However, as adding a battery is a popular choice, we have conducted comprehensive assessments for each property, considering both scenarios – with and without a storage battery.
What does a Solar Storage Battery Cost?
In a typical PV solar panel installation, adding a solar storage battery with a capacity of 5.1kWh will increase the cost by approximately €3,600 – €4,000. We provide quotes for installations both with and without a battery, showcasing their impact on factors like payback and power usage.
A storage battery is beneficial for those often away from home during the day, as it stores excess power for later use. However, if a home is regularly occupied during daytime hours, storage becomes less of a priority.
Storage batteries help stabilize power demand fluctuations and alternative options include diverting excess power to hot water systems, EV charging, or selling it back to the grid through a feed-in tariff.
Recent changes, such as feed-in tariffs, can affect the cost-effectiveness of storage batteries. For individuals frequently away from home on weekdays, a storage battery can still provide a return on investment over the system’s lifespan.
Refer to our comprehensive guide, “Guide To Solar Storage Batteries in Ireland – Everything you need to know,” for more information.
