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Did the VAT cut and falling panel prices actually make solar cheaper?

Last reviewed . Guidance only, not financial or engineering advice.

On paper, yes — and in practice, mostly yes, though it's fair to be a bit cynical about whether every cent of the savings reached customers. Two things have pushed prices down: domestic solar PV VAT dropping to 0%, and a global glut of panels (large oversupply from China and a backlog of stock sitting in European warehouses) that pushed panel prices lower. Compared to the 2022 peak — when VAT still applied and supply was constrained — like-for-like systems are noticeably cheaper now.

The scepticism is that a 0% VAT rate only helps the buyer if installers pass it through rather than quietly absorbing it as margin. There's a reasonable suspicion that the VAT removal became extra profit for installers in places rather than a clean price cut, and that wherever a grant or subsidy exists there's a temptation to price up to it. That's exactly why getting multiple quotes and using the rough per-kWp guide as a yardstick matters — it keeps prices in check.

For your own planning: treat older quotes and price references you find online as likely higher than today's market. On AskSolar's published rule, a basic 4 kWp panels-only system comes to about €4,500 after the grant. If today's quote isn't clearly cheaper than 2022-era numbers for the same kit, ask why — the underlying hardware and tax position have both moved in your favour.

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