VAT: 23% since 1 July 2025
The 2022 State Budget put solar panels and their installation on the reduced 6% rate (verba 2.37 of List I of the VAT Code), and the 2024 budget extended it to heat pumps and air conditioning. That rate ended on 30 June 2025. Since 1 July 2025 the standard 23% applies.
A proposal to bring back the 6% rate permanently was tabled for the 2026 budget in November 2025. We have not found it in force. Check the VAT rate printed on any quote you receive.
What exists in 2026
| Measure | What it is | Who decides |
|---|---|---|
| IRS on surplus sales | Income from selling the surplus of a self consumption unit up to 1 MW is outside IRS up to €1,000 a year (CIRS article 12) | The law; applies to whoever declares the income |
| IMI reduction | Up to 25% off IMI for five years for homes rated energy class A or better, or improved by two classes after works (EBF article 44.º-B) | Each municipality, by vote of its assembly |
| Voucher for small kits | Announced in January 2026 for small self consumption kits, modelled on E-Lar, with no sale of surplus. Not open at our last check | Fundo Ambiental |
What does not exist
- An IRS deduction for installing solar panels. There is none in 2026, as Goldenergy's April 2026 summary notes. Older articles still describe benefits that have ended.
- A grant for ordinary home systems. The programmes of earlier years closed. Watch Fundo Ambiental for the voucher's opening.
So does solar still pay?
Usually yes, on savings rather than support. What decides it is how much of the production you use yourself, because each kWh you use saves the full price on your bill while surplus sells for around €0.05. Use our savings calculator for a first estimate, then ask for quotes and compare them on the four numbers.
- Is VAT on solar panels 6% or 23% in 2026?
- 23%, since 1 July 2025. The 6% rate applied from July 2022 to 30 June 2025. A proposal to restore it was tabled for the 2026 budget; we have not found it in force.
- Can I deduct the installation in my IRS?
- No. There is no specific IRS deduction for a home solar installation in 2026.
- How do I get the IMI reduction?
- Ask your câmara municipal whether it applies the reduction in article 44.º-B of the EBF. It depends on the energy certificate, not on solar alone.
Sources
- Proposal to amend the 2026 State Budget (PS, 7 November 2025): history of the 6% VAT rate, verba 2.37
- Doutor Finanças, solar panels may cost more from July (end of the 6% rate)
- Goldenergy, tax benefits for solar panels in 2026, 3 April 2026
- Portal das Finanças, CIRS article 12 (surplus sale income up to €1,000)
- Estatuto dos Benefícios Fiscais, article 44.º-B (IMI reduction for energy efficient buildings)
- Goldenergy, Fundo Ambiental and solar panels: support expected in 2026, 1 February 2026
- Fundo Ambiental