Romania slashes rooftop solar module VAT rate to boost domestic uptake

Facebook
Twitter
LinkedIn
Reddit
Email
The VAT cut was brought into law by the Romanian parliament this week. Image: PJ Gal-Szabo via Unsplash.

Romania has announced a reduction in value-added tax (VAT) for solar PV modules to 5% from 19% as of this week to boost self-consumption and solar uptake across the country.

The tax reduction also applies to solar thermal panels and low-emission heat pumps. It is extended to both residential systems and installations on buildings owned or managed by state or local authorities. Buildings owned by commercial companies under the management of local or state authorities are excepted from the tax cut.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Romanian member of parliament and vice president of the committee for industries and services, Cristina Pruna, said that investment was the key driver in tackling the ongoing energy crisis and that measures such as this one targeting ‘prosumers’ – individuals who act as both consumers and producers – would increase solar deployment and uptake.

The Romanian Photovoltaic Industry Association praised the reduction in tax rates, having previously warned that unpredictable legislative framework had the potential to threaten the growth of solar PV in the country.

Recently Romania has been highlighted as one of the most promising solar PV markets in Europe. A PV Tech Premium feature from late last year explored how the country is on the precipice of a ‘renewables wave’ as government-backed schemes like the contract for difference programme set to begin this year are set to accelerate the market.  

Microinverter supplier Enphase said last September that it was experiencing greatly increased demand for residential and self-consumption solar solutions across Europe in light of the continent’s energy crisis. The company partnered with manufacturer Flex to establish a manufacturing base in Romania earlier in 2022.  

Read Next

October 8, 2025
US solar module prices jumped in Q3 2025 as developers scrambled to meet the 2 September 2025 safe harbour deadline for Investment Tax Credit (ITC) qualification, according to supply chain platform Anza.
October 8, 2025
University of Sydney scientists have created the largest and most efficient triple-junction perovskite-perovskite-silicon solar cell on record.
October 8, 2025
Saatvik Green Energy has secured new solar PV module orders worth more than INR7 billion (US$84 million), to be delivered in this financial year.
October 8, 2025
Australia's NEM achieved a new minimum operational demand record of 9,666MW, marking a 4% decrease from the previous record.
October 7, 2025
Econergy will acquire 100% stake in the 155MW Ratesti solar project in Romania, further expanding its European renewable energy portfolio.
October 7, 2025
Juniper Green Energy through its subsidiary Juniper Green Sigma Eight has signed a 70MW power purchase agreement with renewable energy giant Tata Power. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK