In the context of the energy transition and the encouragement of using renewable energy sources, the National Agency for Fiscal Administration (ANAF) has issued clarifications regarding the application of the reduced VAT rate for storage batteries used in photovoltaic systems. The new guidelines set the conditions under which this tax benefit can be applied and provide additional direction for taxpayers.

What does the legislation say?

According to the Fiscal Code (art. 291 para. (2) letters n and o), the reduced VAT rate of 9% applies to:

• Photovoltaic panels and installation kits purchased together with them;

• Components purchased separately, if they are intended for residential housing or public administration buildings.

However, when it comes to energy storage batteries, the application of this rate depends on the type of photovoltaic system in which they are used.

How is VAT applied to storage batteries?

The reduced rate of 9% applies only to:
✅ Batteries purchased as part of a complete kit for off-grid photovoltaic systems (not connected to the grid);
✅ Batteries bought separately, but intended exclusively for use in off-grid systems.

The standard VAT rate of 19% applies to:
❌ Batteries intended for on-grid systems (connected to the grid);
❌ Batteries used in hybrid systems (which store surplus energy but are connected to the grid);
❌ Batteries purchased separately, without a clear link to an off-grid photovoltaic system.

If you intend to purchase a storage battery for a photovoltaic system, it is essential to check which category it falls under in order to benefit from the reduced VAT rate. In the case of off-grid systems, the tax advantage is clear, but for on-grid and hybrid systems, VAT remains at the standard rate of 19%.

This clarification helps both prosumers and renewable energy companies better understand the applicable tax regime for photovoltaic equipment and make informed decisions.

The new ANAF guidelines represent an important step in clarifying the tax regime for storage batteries used in photovoltaic systems. Taxpayers interested in this benefit must carefully analyze the imposed conditions and ensure that their documentation complies with the requirements of the tax authorities.