Starting July 1, 2025, systems like solar panels, heat pumps and air conditioning equipment will no longer benefit from the reduced VAT rate of 6% and will be subject to the normal rate of 23%.

This change is provided for in the budget legislation and represents a significant increase in the final cost of energy efficiency projects. The good news is that you still have time to guarantee the lower price — but you need to act now.

What will change?

From July, all systems related to renewable energy production or management (like photovoltaic panels, heat pumps, efficient air conditioning units) will be taxed at 23% VAT.

Until then, these same equipment still benefit from the reduced rate of 6%, provided that:

1. The quotation and adjudication process is completed by June 30, 2025;
2. The installation takes place in a building for residential use and meets the legal requirements.

What is the financial impact?

A system costing €8,000 with 6% VAT has a total cost of €8,480. With 23% VAT, the same system goes to €9,840. 
That is, it can mean an increase of more than €1,300 in the total cost.

How to guarantee the reduced rate?

To benefit from the 6% VAT rate, it's essential to complete the decision process, proposal approval and installation scheduling before June 30, 2025.

At Geoclima, we help you in all stages:

1. Free diagnosis
2. Quick and personalized proposal
3. Guaranteed scheduling within the deadline
4. Complete support in tax documentation

Conclusion

If you're considering investing in solar energy, efficient air conditioning or heat pumps, this is the right time to act. 
Avoid the impact of the VAT increase and guarantee the best return for your investment.

Talk to us: 
https://geoclima.pt/en/contact