Montenegro can follow the example of Croatia and cancel the tax value added (VAT) to solar panels as governments in the region increasingly recognize the importance of rooftop solar power plants as a response to the energy crisis.
The Ministry of Economic Development and Tourism of Montenegro has announced that it is preparing a new set of measures to ease the pressure of the energy crisis in the coming months. One of the measures that will be proposed to Finance Minister Alexander Damyanovich will be the abolition of VAT on solar panels.
According to Minister of Economic Development and Tourism Goran Djurovic, the abolition of the VAT on solar energy is aimed at a faster transition to renewable energy sources. It will also improve long-term security of supply and help citizens and the economy in the event of market disruptions and low water levels in hydroelectric reservoirs.
The Croatian government was the first in the region to eliminate VAT on solar panels in order to speed up the energy transition and ensure the supply of electricity. In its statement, the Ministry of Montenegro recalls this step of its neighbors.
In Croatia, the VAT on solar panels is 25 percent, while in Montenegro the VAT rate is 21 percent.