Why are solar panels fiscally attractive for entrepreneurs?

November 10, 2023

Why are solar panels fiscally attractive for entrepreneurs?

The government aims to encourage as many sustainable investments as possible, and solar panels are included in this category. Read here why solar panels are fiscally attractive and what steps you need to take as an entrepreneur when purchasing solar panels.

What fiscal benefits do you have when you purchase solar panels?
As an entrepreneur, there are fiscal benefits when buying solar panels. The VAT on the solar panels themselves and their installation is refundable from the tax authorities. When you reclaim this VAT, you are also required to pay VAT on the surplus energy generated by the solar panels, known as feed-in. Feed-in is the sale of the solar energy from your panels that you do not use. In essence, you become an energy supplier, and therefore, you must pay VAT to the tax authorities.
Additionally, when acquiring solar panels, you can also take advantage of the following attractive tax deductions: KIA (Small Project Investment Credit), Energy Investment Allowance, MIA (Environmental Investment Allowance), and/or VAMIL (Random Depreciation of Environmental Investments). Of course, you need to meet the conditions for these deductions.

How can I reclaim the VAT on the solar panels?
You can reclaim the VAT on the purchase and installation of your solar panels through the regular VAT return process. To do this, you need to add the due VAT and pre-tax to the VAT from your business activities.

How does it work with VAT if I also use the solar panels privately?
For this regulation, it doesn't matter whether you use the solar energy only for business purposes or also privately. The regulation applies in both situations.

With solar panels, you ultimately get back much more VAT than you have to pay. You can also take advantage of deductions such as the MIA. If you invest in solar panels, be sure to include them in your administration!