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Associations call for VAT reduction on solar panels and air conditioning.

Zero – Associação Sistema Terrestre Sustentável, Deco – Associação Portuguesa para a Defesa do Consumidor, and Apirac – Associação Portuguesa das Empresas dos Setores Térmico, Energético, Eletrónico e do Ambiente are urging the government and lawmakers to reinstate the reduced VAT rate for purchasing and installing renewable energy and high-energy efficiency equipment in the discussion and voting process of the State Budget for 2026.

The associations argue in a statement that reinstating this measure would be socially fair, environmentally consistent, and fiscally responsible. It would also signify support for energy transition and efficiency for families and businesses.

The groups point out the inconsistency of the government’s approach: encouraging the replacement of fossil fuel-dependent equipment via programs like E-Lar, while maintaining fiscal policies that increase the cost of clean and efficient solutions. They emphasize the need to make efficient energy solutions more accessible and to support the energy transition.

As of July 1 this year, the VAT rate on renewable energy increased from 6% to 23% after the reduced rate, introduced in 2022 to incentivize the energy transition, was not extended.

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