Solar modules sold in the European Union (EU) could be subject to lower value-added tax (VAT) rates after an agreement was reached last week by finance ministers from across the bloc.
The European Council agreed to update the rules on VAT rates to bring the tax’s rules in line with EU priorities such as fighting the climate crisis, while also providing governments with more flexibility on the rates they can apply.
Following consultations between EU member states, they have decided to widen the current list of goods and services that can benefit from reduced VAT rates to include, among other things, solar panels installed on private homes and public buildings.
“This is an early Christmas gift from the Council,” Walburga Hemetsberger, CEO of trade association SolarPower Europe (SPE), said in a statement sent to PV Tech.
