Romania Lowers Value Added Tax On Solar PV Panels

• Romania has enacted a law to reduce VAT on solar panels from 19% to 5%
• It will increase the number of prosumers in the country to enable increased energy production locally
• Till the end of September 2022, the country had over 250 MW installed solar with 27,000 prosumers, stated MP Cristina Prună

Romania has enacted the law to bring down value added tax (VAT) on solar PV panels and their installation to 5% from the previous limit of 19% in a bid to accelerate solar power deployment to deal with European energy crisis.

Announcing the same, a Member of the Parliament and Vice President, Committee for Industries and Services in Romania, Cristina Prună said on her LinkedIn account, "This law will lead to an increase in the number of prosumers at a time when Romania desperately needs an increase in energy production. Some put taxes on the sun, we reduce taxes, like VAT."

Prună along with another Member of Parliament, Adrian Wiener had been promoting the cause of VAT reduction for solar panels to enable more people to generate their own electricity, reduce their electricity bills, thus contribute to the country's decarbonization efforts.

"Private money has managed to install hundreds of MW and the number of prosumers has grown to 27,000 at the end of September 2022 with over 250 MW installed," said Prună in December 2022. "The reduction of VAT to 5% for photovoltaic panels, heat pumps and solar panels will lead to an increase in the pace of investments both in the production of energy for self-consumption and in the energy efficiency of homes. Only through investments can we cross this energy crisis."

Back in December 2021, the European Council proposed to bring down VAT for products and services considered beneficial for the environment, including solar PV for homes and public buildings (see Solar PV Panels May Get Cheaper In EU).