Tax changes in green energy: VAT on solar panels and heat pumps

Romania's Ministry of Finance recently proposed significant tax changes with a direct impact on the green energy industry. The draft law aims to change the VAT rate for certain products and services. Among the proposed reforms is an increase in the VAT rate for solar panels and heat pumps, from the current 5% to 9%.

The change affects various types of equipment — solar panels, solar thermal panels, heat pumps and other high-efficiency heating systems — bought by private individuals. According to the details set out by the Ministry in the draft law, the change is expected to take effect from 1 January 2024, though the date may change depending on when the decision is approved.

It's worth noting that only at the start of the year, under Law no. 39/2023, VAT had been reduced to 5% for solar panels and heat pumps bought by private individuals.

In this context, those still weighing up their decision could benefit from considerable tax advantages when buying solar panels and heat pumps if they choose to buy before the end of 2023, ahead of the VAT increase. This period offers a unique opportunity to invest in sustainable energy sources at more affordable costs. We're here to guide you through these changes and to keep supporting you in adopting green energy solutions.