Latest Updates: 0% VAT and 6kVa inverters banned for Domestic Solar
In recent weeks, two important updates have been made to Solar PV in Ireland. The discontinuation of 6kVa inverters in single phase, domestic jobs and a 0% VAT rate on supply and install.
Abolition of VAT on Supply and Install of Domestic Solar PV
In a significant move towards sustainability, Ireland has recently implemented a groundbreaking policy by eliminating Value Added Tax (VAT) on solar panels. By dropping the VAT rate to 0% for domestic supply and installation, the government aims to encourage renewable energy adoption, reduce carbon emissions, and foster the development of a greener economy. This proactive measure represents a critical milestone for Ireland’s commitment to combating climate change and transitioning to a more sustainable energy future.
The decision to waive VAT on solar panels reflects Ireland’s dedication to supporting renewable energy sources. By providing financial incentives, the government encourages citizens, businesses, and organizations to embrace clean energy solutions. Solar panels, which convert sunlight into electricity, offer a sustainable and environmentally friendly alternative to traditional energy sources.
The reduction of VAT on solar panels is expected to significantly increase their affordability and accessibility. Cost has often been a barrier for individuals and businesses considering solar panel installations. The elimination of VAT enables potential consumers to invest in solar energy systems without the added financial burden.
The move to drop VAT on solar panels not only benefits the environment but also stimulates economic growth. By incentivizing solar energy projects, Ireland can attract investments, create job opportunities, and foster innovation in the renewable energy sector. The solar industry will experience a surge in demand, leading to the expansion of manufacturing, installation, and maintenance services. This growth will contribute to the overall development of a green economy, which is essential for long-term sustainability and competitiveness.
Reducing carbon emissions and mitigating the impacts of climate change are global priorities. Ireland’s decision to eliminate VAT on domestic Solar PV aligns with the country’s commitment to combat climate change. By facilitating the transition from fossil fuels to renewable energy sources, such as solar power, Ireland takes a significant step towards achieving its climate goals outlined in the Paris Agreement.
Ireland’s initiative in dropping VAT on solar panels sets an example for other nations to follow. As the world collectively seeks sustainable solutions to address climate change, governments must implement policies that support renewable energy adoption. By making solar panels more affordable and accessible, countries can stimulate renewable energy markets, reduce carbon emissions, and transition to a low-carbon economy. As if you needed another reason to switch to solar!
Discontinuation of 6kVa Inverters
Ireland’s renewable energy landscape is continuously evolving, driven by advancements in technology and a growing focus on sustainability. In a significant development, the discontinuation of 6kVa inverters in Ireland has recently been announced.
As Ireland moves towards a greener and more sustainable energy sector, the demand for renewable energy sources, such as solar and wind, is steadily rising. With this surge in demand, it has become necessary to reevaluate the capacity of inverters—the devices that convert direct current (DC) electricity from solar panels into alternating current (AC) for use in homes and businesses.
Inverters play a crucial role in the renewable energy ecosystem, ensuring efficient and reliable conversion of solar-generated electricity. The selection of an appropriate inverter capacity is essential to maximize the energy output from solar panels and optimize the overall performance of the system. In the past, 6kVA inverters were widely used due to their compatibility with smaller residential solar installations.
Notice from ESB Networks:
Information note in relation to Microgeneration units which exceed the defined 25A limit
It has recently come to our attention that some Microgeneration units are being installed which have output currents in excess of the Rated Current (as per Type Test) 25A limit allowable as per the ESB Networks document Conditions Governing the Connection and Operation of Micro-Generation (esbnetworks.ie).
We acknowledge that units may have been inadvertently purchased and installed based on manufacturers model references as opposed to specific data sheet information. In order to address the issue in a reasonable manner and ensure there is absolute clarity, we are now highlighting that we will continue to accept applications for units referenced as 6kVa, but with a Rated Current (as per Type Test) of up to a maximum of 28A single phase, until 31st May 2023, however from that date on any units with a Rated Current (as per Type Test) over 25A will not be eligible for connection under the NC6 Microgeneration connection application route.https://www.esbnetworks.ie/new-connections/generator-connections-group/micro-generators-
The discontinuation of 6kVa inverters in Ireland represents a forward-looking approach to meeting future energy needs. As Ireland continues to prioritize renewable energy and aims to achieve its climate goals, higher capacity inverters will become indispensable. The increased capacity allows for the integration of more solar power, reducing reliance on fossil fuels and promoting a cleaner and sustainable energy sector.