Romania pushes zero VAT for solar as electricity prices soar

The Association of Prosumers and Energy Communities (APCE) has asked the Romanian Parliament to adopt a zero‑VAT rate for photovoltaic systems and battery storage, mirroring a German model that began on 1 January 2023. APCE estimates the measure could lead to the installation of about 96 000 new PV systems (≈768 MW) and 1.54 GWh of storage capacity, attracting roughly €614 million of private investment.

On the wholesale market, Romania’s day‑ahead electricity price (PZU) reached around €178/MWh, placing it among the highest in the EU. The surge is linked to extreme heat, low river levels, reduced hydro and nuclear output, and the shutdown of the Cernavodă Unit 1. The high price is expected to flow through to consumer bills.

Romania also sells cheap daytime solar electricity to Bulgaria while buying back at night at prices up to seven times higher, a gap attributed to Bulgaria’s extensive battery investments. Former Energy Minister Sebastian Burduja highlighted this imbalance, and State Secretary Cristian Bușoi confirmed that expanding domestic storage could resolve it within a year.

A new prosumer law (Law 160/2026) that entered force on 26 July 2026 changes compensation for surplus energy, moving to monthly settlement and allowing surplus value to be used for gas bill payments. These regulatory shifts aim to boost distributed generation and address the storage shortfall that currently hampers Romania’s energy security.