Now, solar panels are a more attractive investment for those who want to take advantage of the solar energy.

Aiming for an energy transition push, Portugal approved the VAT reduction for solar panels, from 23% to 6%. Since July 2022, solar panels are a more attractive investment for those who want to take advantage of the solar energy.

The VAT reduction represents a significant decreased on the price for the final consumer. 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. However, solar still has a lot of potential in the Iberian country, being the fourth most productive renewable energy sources. 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

Portugal is one of the most attractive markets to invest on renewable energy, according to the newest “Renewable Energy Country Attractiveness Index”, presented EY. The country is 23rd in the ranking of countries with the best investment opportunities and developments of renewable energy, in front of countries like Finland and Turkey. United States, China, United Kingdom and Germany are ranked in the first positions.

Solar energy in its all forms is one of Universal Kraft’s core specialty. Discover all our solar projects here.

Featured image: Nuno Marques