Montenegro may follow Croatia’s example and abolish the tax on value added (VAT) on solar panels, as governments in the region increasingly recognize the importance of rooftop solar power plants for homes and businesses as a measure to address the energy crisis.
The Ministry of Economic Development and Tourism of Montenegro 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 to be proposed to Finance Minister Aleksandar Damjanović will be the abolition of VAT on solar panels.
According to Minister of Economic Development and Tourism Goran Đurović, the abolition of VAT on solar energy is aimed at a faster transition to renewable energy sources. It will also improve the reliability of supply in the long term and help citizens and the economy in the event of market disruptions and low water levels in hydropower reservoirs.
Croatia was the first in the region to abolish VAT on solar panels in order to speed up the energy transition and ensure electricity supply. In its statement, the Montenegrin ministry recalls this move by its neighbors.
In Croatia, VAT on solar panels is 25 percent, while in Montenegro the VAT rate is 21 percent.