Romania: Association proposes 0% VAT for photovoltaic systems

The Association of Prosumers and Energy Communities (APCE) has submitted a proposal to the Romanian Parliament to introduce a 0% Value Added Tax (VAT) for photovoltaic systems. This initiative aims to lower the initial costs of solar panel installation and encourage citizens to become prosumers, who both consume and produce energy.

Currently, photovoltaic systems in Romania are subject to a 19% VAT, which the APCE identifies as a significant financial barrier for households and small businesses. The association estimates that eliminating this tax could reduce the average price of solar installations by up to 19% or 20%, making renewable energy more accessible.

The proposal is intended to support Romania in meeting European Union objectives regarding carbon emission reductions and the expansion of renewable energy capacity within the national energy mix.