How long will the VAT measure be reduced to renewable energy in force?

by Andrea
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How long will the VAT measure be reduced to renewable energy in force?

Consumer / Deco’s office

How long will the VAT measure be reduced to renewable energy in force?

A Deco Informa …

The Deco, expresses strong concern with the end of the reduced VAT rate (6%) applied to the purchase, delivery and installation of renewable energy equipment, as it is only in force until June 30, 2025. From July 1, consumers will pay 23% VAT, a 17 percentage point with direct effects and penalizers in the family budget, especially the middle class and most vulnerable consumers.

The measure, introduced in the state budget to 2022 (OE/2022), enrolled in the effort to promote energy efficiencya decarbonization and the equitable access to sustainable technologiesincluding heat pumps, thermal and photovoltaic solar panels, wind turbines and other clean energy systems. However, with the state budget (OE) of 2025 not to provide any extension, the regime of money ceases to be effective.

The end of the reduced rate endangers clean energy accessibility and represents a setback in the fight against energy poverty.

Deco warns that this rise from 6% to 23% will have serious social and economic consequences. At a time when families face high burdens with energy, housing and food, the increase in the cost of solutions such as heat pumps or solar panels It represents an additional barrier to the adoption of environmentally responsible behaviors.

The fiscal penalty of these equipment drives consumers from the energy transition, at a time when all incentives are crucial to combating climate crisis and energy poverty.

Os medium-low yield consumers are the most damaged, as they would benefit the most of the replacement of old and inefficient equipment with modern and sustainable alternatives, Process now stared at the tax reversal.

It requires the government to be an urgent adoption of compensatory measures that avoid the negative impact of the end of the reduced VAT rate on renewable energy equipment.

The association advocates the extension of the application of the reduced rate, the reinforcement of incentives and financial support, directly to the installation of these equipment, as well as the creation of specific programs to support families in a situation of energy vulnerability.

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