Solar Panels in Ireland: Tax Benefits & Grants

Solar panels are no longer a niche upgrade in Ireland. Electricity costs, grid uncertainty, and long-term climate policy have made solar PV a serious consideration for homeowners, landlords, and small businesses.

But just like electric vehicles, the real cost and benefit of solar isn’t only the upfront price. VAT treatment, grants, export credits, and (for landlords) how Revenue treats retrofit spending can materially change the final outcome.

As we move into 2026, some supports are well established, but others are frequently misunderstood or applied incorrectly. Getting the tax side right can save money — and prevent nasty surprises later.

VAT on solar panels: one of the biggest “tax wins” (if invoiced correctly)

One of the most significant supports for home solar is the 0% VAT rate — but it’s important to understand how it actually applies.

What applies now

Revenue guidance confirms that from 1 May 2023, a zero rate of VAT applies to the supply and installation of solar panels on or adjacent to private dwellings.

That means:

• If your installer provides the panels and installs them under a single supply-and-install contract, the invoice can be 0% VAT.
• Revenue also confirms the zero rate can include ancillary equipment supplied and installed with the panels — which can include items like inverters and (in many cases) batteries when included as part of the same supply-and-install job.

The key limitation (where people go wrong)

If a company only supplies panels (no installation), Revenue’s examples show this can fall back to standard VAT.

Tax takeaway: The 0% VAT benefit is “baked into” the price only when the installation and invoicing meet Revenue’s rules.

SEAI Solar PV Grant: helpful — but not the same as a tax relief

The SEAI Solar PV Grant reduces the upfront cost of installing solar panels in a private home.

What’s confirmed (including 2026)

SEAI sets the grant structure and confirms that the maximum grant will remain €1,800 in 2026.

Citizens Information also reflects the same cap for 2026 and summarises how the grant works.

Important distinction: A grant is not a “tax deduction.”
You don’t claim it through Revenue as a personal tax relief — it reduces the installation cost upfront.

Selling electricity back to the grid: is it taxable?

This is one of the most common questions and one of the easiest places to accidentally misstate the rules.

How export payments work

Under Ireland’s microgeneration framework, households exporting excess electricity typically receive payment/credit from their supplier (commonly referred to as the Clean Export Guarantee (CEG)).

The tax rule you should state clearly

Budget 2026 confirms the €400 income tax disregard for household microgeneration income (from selling electricity back to the grid) is extended to 31 December 2028.

What that means in plain English

• Export income is not “automatically tax-free forever”
• But households benefit from a €400 per-year disregard
• If household export income exceeds that, the excess may become taxable and should be reviewed

Practical example

• A household receives €250–€400 in export credits in a year → typically covered by the disregard.
• A high exporter (large system + low usage) receives €650 → the amount above the disregard may need attention.

Solar panels and income tax: what “tax-efficient” really means

Solar is often described as “tax-efficient,” but that doesn’t mean you get an income tax refund just for installing panels.

For homeowners

For most homeowners:

• There’s no general income tax relief for buying solar panels
• The financial benefit usually comes from:
• 0% VAT (if done correctly)
• SEAI grant support
• lower bills + export credits (with the €400 disregard)

For landlords: there is a specific Revenue relief to know

Revenue provides a deduction for retrofitting expenditure for landlords of rented residential premises, where:

• the landlord has received an approved SEAI retrofitting grant
• works are carried out between 1 January 2023 and 31 December 2028

Revenue also sets:

• a deduction cap (generally the lesser of €10,000 or the qualifying expenditure amount after grants)
• and limits based on number of premises (Revenue’s current guidance references a maximum of two premises on the “how much relief” page, so don’t claim “three” unless you’re quoting an updated Revenue page that explicitly says so).

🚩 Common mistake:
Landlords either (a) assume solar is automatically deductible like a repair, or (b) miss the specific retrofit deduction entirely.

Common solar tax mistakes we see

• Assuming solar panels are “tax deductible” for homeowners
• Confusing SEAI grants with tax reliefs
• Saying export payments are tax-free in all cases (they’re subject to rules; €400 disregard applies)
• Landlords claiming the cost incorrectly (or missing the retrofit deduction entirely)
• Invoicing mistakes that risk losing the 0% VAT treatment

What’s changing for 2026 (and what isn’t)

Confirmed / ongoing into 2026

• 0% VAT for supply + install of solar panels for private dwellings (since 1 May 2023)
• SEAI grant maximum remains €1,800 in 2026
• Budget 2026 extends the €400 microgeneration income tax disregard to end-2028
• Landlord retrofitting deduction continues for works carried out up to 31 Dec 2028 (conditions apply)

Not guaranteed / always subject to annual change

• Grant levels beyond current commitments
• Any new personal income tax deduction for solar purchases
• Any new battery-specific tax incentives

How to approach solar from a tax perspective

Before installing

• Confirm the installer is doing a single supply-and-install contract so 0% VAT can apply
• Understand grants vs tax reliefs (they aren’t the same)
• Understand export credits and the €400 disregard
• If you’re a landlord: confirm whether you qualify for the retrofitting expenditure deduction

After installing

• Keep invoices, grant approval docs, and export payment records
• Review your position if your property use changes (owner-occupied → rental, etc.)

Final word

Solar panels in Ireland are financially attractive, but the biggest “tax benefits” are usually indirect: 0% VAT (when done correctly), grant support, and the €400 export-income disregard — not personal income tax relief.

For landlords, there may be additional relief available, but only under specific Revenue rules and typically tied to approved SEAI retrofitting grants.

How Irish Tax Hub can help

We can:

• Explain the real tax impact of installing solar panels
• Review landlord and business solar installations
• Clarify export income and VAT treatment
• Help you avoid common (and costly) mistakes
• Keep you compliant as rules change toward 2026

Thinking about installing solar panels — Talk to Irish Tax Hub today and make sure your solar savings aren’t quietly being lost to tax errors.