VAT on solar and photovoltaic water heaters will drop to 6% in spring 2023. The Greek government is taking this step as part of a program to support households that have decided to take a step towards energy autonomy and use renewable energy sources to cover their personal needs. Also, the reduction of the tax burden is a necessary measure in the framework of the development of the energy independence of the country and the entire European Union.
A radical reduction in the VAT rate - from 24% to 6% - was initiated by Directive (EU) 2022/542. The mentioned directive will affect the tax rate for citizens of 27 member countries of the European Union and generally make renewable energy more accessible. In parallel with how green energy will become cheaper, preferential treatment for environmentally harmful sources of heat and light will be gradually curtailed.
From next year, new buildings in Greece will be built immediately with photovoltaic panels. The national climate law requires developers building semi-residential buildings to cover at least 30% of the roof surface with solar energy storage devices. They are not required to do this only on churches and tourist buildings. From 2026, green energy systems will be required on all new buildings with an area of 250 sq. m, and from 2029 - on all residential buildings without exception, infrastructure and receivers for photovoltaics will have to be installed and connected.
Despite the fact that Greece is already encouraging citizens in every possible way to switch from energy carriers to renewable energy sources, there are still many obstacles on the way to self-sufficiency and environmental friendliness. For example, at the end of 2022, almost 70 thousand applications from businesses and private consumers were submitted for the installation of solar power plants in the country, but it is difficult to predict the timing of their execution: there is a shortage of equipment in the Republic.