Installing solar panels will become significantly more expensive next year. After the abolition of the Flemish premium, the reduced VAT rate of 6 percent has now also been abolished.
Anyone who wants to enjoy solar panels cheaply should do so this year. Since April 1, 2022, a reduced VAT rate of 6 percent instead of 21 percent has applied to the supply and installation of solar panels, boilers and heat pumps in homes that are less than ten years old.
In the budget agreement early last week, the federal government decided to extend the reduced rate for heat pumps for a year. What remained under the radar is that the favorable rate for solar panels expires at the end of this year.
Anyone who has solar panels or a solar boiler installed in a home that is younger than ten years old will pay 21 percent VAT again from January 1. New-build and recent homes were also eligible for the preferential rate, but it could not be used when purchasing a new-build home off-plan with solar panels. For homes older than ten years, the VAT rate remains 6 percent.
Installation this year
Anyone who still wants to take advantage of the lower VAT rate must have solar panels installed this year. The invoice date is taken into account to determine the VAT rate. The Flemish government previously decided that the premium for those who install solar panels will also disappear from 2024. This premium only applied to homes of ten years and more. Anyone who installs solar panels by December 31 at the latest and has them inspected can apply for a premium of up to 750 euros from Fluvius.
The difference with an average installation is 1,300 euros
At the solar panel installer Go-Solar by D’Ieteren, the average price of an installation is around 8,600 euros, excluding VAT. If you go for an installation this year, 516 euros (6%) VAT will be added, so you pay a total of 9,116 euros. If you do not have that installation installed until next year, the VAT will amount to 1,806 euros (21%) and you will pay a total of 10,406 euros. That is a difference of 1,290 euros.
There is therefore not much time left to benefit from the premium or the reduced VAT rate, although according to installers there is still room to have solar panels installed and inspected this year. You have to hurry then.
The invoice date is decisive for the reduced VAT rate and the inspection date is important for the premium.
“Since we still have sufficient stock, there is certainly still room to have solar panels installed and inspected by the end of this year,” says Dries Dams, director at the installer Sun Eco. “Customers should order as soon as possible, preferably before the end of this month,” says Inge Brusselmans, marketing manager at the installer Go-Solar by D’Ieteren.
“Solar panels that are ordered now will be installed around the end of November,” says Hans den Ouden, manager of the installer EcoFusion. ‘So there is still about a month to order solar panels. After installation, we allow a maximum of two weeks to have the solar panels inspected.’
No stampede yet
Solar panel installers are not yet seeing a rush for solar panels, but they are seeing a slight increase in demand. The hardware store in general is cooling down slightly. “Sales have increased slightly, but not like in previous years,” says Dams. Den Ouden also sees no rush for solar panels. ‘Last year we saw a huge spike in sales when the premium was announced. Now that is absolutely not the case.’
Go-Solar by D’Ieteren also notices that the demand for solar panels is only increasing slightly. “The premium of a maximum of 750 euros was no longer the determining factor for having solar panels installed,” says Vincent Vancaeyzeele, technology and innovation manager at Techlink, the Belgian professional federation of installers. ‘You had to install a large installation to receive the full premium.’
‘Due to the increased lifespan, customers are paying more attention to their expenses and are more likely to postpone the installation of solar panels. The premium of 750 euros does not always convince them to opt for solar panels this year,’ says Brusselmans.