Customers and providers must not lose out from abolished VAT rate on solar panels says Louth TD

Customers and providers must not lose out on savings from the proposed plan to abolish VAT on the supply and installation of solar panels in homes, according to Louth Fine Gael TD Fergus O’Dowd.

Deputy O’Dowd said the Government decision to slash the Vat rate to 0% on the supply and installation of solar panels on homes and public buildings must be retrospective on orders that have already been made.

Deputy O’Dowd said:

“Reducing VAT to zero on solar panels is expected to save householders an additional €1,000 and reduce the payback period by nearly a year, which is extremely welcome news for households.

“When this is combined with the SEAI solar grant of up to €2,400, this means that the total average home solar installation could fall to about €5,600.

“However, I have been contacted by a number of solar panel companies this week who are extremely concerned as they have received countless cancellations on orders as people are understandably waiting to avail of the welcome reduction in cost.

“In many cases they are now contemplating staff lay-offs as their order sheets have been decimated.

“I would strongly recommend that if the proposal is agreed by Cabinet that orders can progress and retrospective rebate for the VAT can be applied for.

“If the change could be backdated to the start of this month, this would ensure both providers and householders would not lose out on the proposed saving.

“This will allow solar panel suppliers and fitters to continue their important work and offset a build-up of orders which in my opinion will only cause inflated prices and delays to installations.

“I have expressed this view to Minister Ryan in the hope that this can form part of the decision making process when this reduced VAT rate is implemented as part of the Spring Finance Bill,” Deputy O’Dowd concluded.