Now, solar panels are a more attractive investment for those who want to take advantage of the solar energy.
In an effort to accelerate the energy transition, Portugal authorized a 23% to 6% VAT cut for solar panels. Since July 2022, solar panels are a more attractive investment for those who want to take advantage of the solar energy.
The price of the finished product has significantly lowered as a result of the VAT reduction. For instance, with a VAT on 23% a solar panel that costed 2.460€ is now on 2.120€, with the 6% tax fee.
Portugal’s solar panels generated energy set a new record
In May, Portugal generated 3,337 GWh of electricity, with solar production accounting for 8.2% of the total, the highest point ever. Nonetheless, as the fourth most productive renewable energy source, solar still has a lot of promise in the Iberian nation. Wind accounts for 25% of total generation, hydro at 13% and biomass 9.8%.
Overall, renewable energy is responsible for 56,3% – 1,902 GWh, of total electricity production, according to APREN. Also according to the Portuguese Association of Renewable Energy, renewables generation saved an estimated €274 million in natural gas imports in May.
An attractive market for renewables
The most recent “Renewable Energy Country Attractiveness Index” released by EY lists Portugal as one of the most desirable countries for renewable energy investments. Compared to nations like Finland and Turkey, the nation ranks 23rd in the world for investment opportunities and advancements in renewable energy. United States, China, United Kingdom and Germany are ranked in the first positions.
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