Zero VAT on solar panels

The Club of Deputies of the Democratic Front (DF) submitted to the parliamentary procedure a draft law on the amendment of the Value Added Tax (VAT) Act, which stipulates that for the delivery and installation of photovoltaic systems (solar panels) this tax is paid at a rate of zero percent.

Apart from this, the DF deputy Dejan Djurovic submitted amendments to the Law on Spatial Planning and Construction of Buildings, the adoption of which would speed up administrative procedures, i.e. allow the creation of technical documentation and the installation of solar panels with a power of 30 to 1.000 kilowatts (kW) on existing buildings without issuing urban-technical conditions until the end in 2025.

The reasons for making changes to both laws are, as stated in the explanation of the proponent, the promotion of the use of renewable energy sources as well as the acceleration of the green energy transition.

"In the face of the energy crisis, as well as the enormous increase in electricity prices on the European market, it is necessary to speed up the transition to renewable energy sources, in order to ultimately ensure a safe and high-quality supply of citizens and the economy with electricity, especially in cases of market disturbances and bad hydrological situations. The adoption of these bills would make it easier for citizens and the economy to install photovoltaic systems, improve energy independence, and achieve numerous benefits based on the electricity produced from new, renewable sources. Similar legal solutions have been accepted in the countries of the region, as well as in some member states of the European Union", the explanation of both proposals states.

In the explanation of his proposal, Đurović stated that very large roof areas on existing industrial and commercial buildings represent a significant potential for the production of electricity through the construction of photovoltaic power plants.

"The proposed solution speeds up the administrative procedure of designing and building solar photovoltaic power plants on the roofs of existing buildings, for a certain period of time, through the release of urban planning and technical conditions, while maintaining all other stages of the preparation of technical documentation, its revision and supervision over the construction of the same", stated Đurović.

In his explanation, he emphasized that the proposed solution treats photovoltaic power plants with an installed capacity of up to 1.000 kW, and that the legally prescribed procedure for the construction of larger photovoltaic power plants, which have the status of complex engineering facilities, remains in effect unchanged.

"In addition, this draft foresees the mandatory creation of an analysis and test report on the static stability of the building where the photovoltaic power plant is installed, done by a legally authorized body, and it is guaranteed that the static stability of the existing buildings on which the construction of the solar power plant is realized cannot be brought into question", says Đurović's proposal.

The proposer also stated that the foreseen temporary suspension of the issuance of urban planning and technical conditions for the installation of solar panels cannot in any way lead to the devastation of the space, because the panels are installed on existing (legal) buildings, whereby through the obligation to prepare the prescribed technical documentation, it is guaranteed stability of existing facilities.