Thinking about going green and investing in solar panels or energy-efficient equipment? Wondering what is Accelerated Capital Allowance for Solar and how it can benefit your business? You're in the right place! Whether you're a sole trader, limited company, or farmer, ACA makes it easier—and more affordable—to go green.
In this blog, we’ll dive into how the ACA works, who can benefit from it, and how it can help your business save money while improving energy efficiency.
What Is the Accelerated Capital Allowance (ACA)?
It’s a scheme that lets businesses claim the full cost of approved energy-saving equipment, like solar panels, against their taxable profits in the same year you make the purchase. Unlike standard capital allowances, which spread your tax relief over 8 years, ACA lets you enjoy the full benefit upfront.
This is a smart way to reduce your environmental impact while boosting your bottom line. Plus, it helps you make a long-term investment in sustainability that can bring you savings for years to come.
Who Can Benefit from the ACA?
The great news is that the ACA is available to all businesses in Ireland that pay corporation tax or income tax on trading or professional income. This includes:
1. Companies
From small startups to large corporations, any registered Irish business can take advantage of ACA. It’s a great way to cut your tax bill while investing in energy-efficient solutions.
2. Sole Traders
If you run your own business, you can claim ACA for equipment like solar panels used directly in your trade.
3. Farmers
Agricultural businesses can also benefit, especially when investing in renewable energy technologies like solar panels or biomass boilers.
Are You Eligible for ACA?
To qualify for ACA, make sure the following apply:
- The equipment is new and unused.
- It is owned outright by your business (not leased).
- It’s listed on the SEAI’s Triple E Product Register.
- The equipment is used directly in your trade or business activities.
By meeting these criteria, you can make the most of the ACA and start saving money right away.
How Does the ACA Support Solar Investments?
Now, let’s answer the big question: How does the Accelerated Capital Allowance for Solar work in practice?
Solar panels are listed under the "Heating and Electricity Provision" category on the SEAI’s approved list. This means that you can claim 100% tax relief on solar-related equipment in the year it’s installed.
Eligible equipment includes:
- Photovoltaic (PV) solar systems
- Solar thermal collectors
- Inverters
Minimum spend:
€1,000 – Even smaller systems may qualify, so it’s worth exploring your options.
What Are the Benefits of the ACA?
So, why should you consider taking advantage of the ACA for Solar? Here’s how it can benefit your business:
1. Immediate Tax Relief
You can claim the full cost of eligible equipment in the same year. No need to wait years for the full benefit.
2. Lower Taxable Profits
By reducing your taxable profits, you’ll pay less in taxes, freeing up cash for reinvestment into your business.
3. Encourages Green Investment
The ACA helps you reduce your energy costs and environmental impact while showing your commitment to sustainability.
What Types of Equipment Qualify for ACA?
The ACA covers a wide range of energy-efficient equipment, including but not limited to:
- Energy-efficient machinery – Heating, ventilation, and industrial systems that meet strict energy standards.
- Building upgrades – Insulation, LED lighting, and high-performance windows.
- Renewable energy technologies – Solar panels, heat pumps, and biomass systems.
- EVs and charging points – Electric vehicles and charging infrastructure.
- ICT equipment – Energy-efficient servers, routers, and data center upgrades.
Always verify eligibility by checking the SEAI’s official register before purchasing.
How to Claim the Accelerated Capital Allowance (ACA)?
Claiming ACA is easy. Just follow these steps:
1. Choose your equipment
Identify the energy-efficient solution your business needs.
2. Check eligibility
Make sure the equipment is listed on the SEAI’s Triple E Product Register.
3. Make the purchase
Buy the approved equipment and keep your purchase records.
4. File your tax return
Use your company’s tax return form (CT1) to claim ACA.
Important to remember
- The equipment must be new and used directly in your business.
- It must be listed on the SEAI register at the time of first use.
- The ACA applies to the same accounting period the equipment is used.
Why Choose ACA Over Standard Capital Allowances?
With traditional wear-and-tear allowances, tax relief is spread over eight years. But with ACA, you get 100% tax relief in Year 1, offering:
- Faster financial return – You get the benefit right away, instead of waiting years.
- Improved cash flow – Your business has more money to reinvest into other areas.
- Immediate reward for sustainable investment – Take action now and see results quickly.
Conclusion
Now that you know what is Accelerated Capital Allowance for Solar and how it can benefit your business, it’s time to start planning your investment in renewable energy. By claiming the full cost of your solar setup upfront, you’ll get immediate tax savings, reduce your energy costs, and move toward a greener, more sustainable operation.
At Going Solar, we’re here to guide you through every step of the process—from selecting the right solar solution to navigating the ACA. Let us help you save money, go green, and take control of your energy future.
Need Assistance Navigating ACA?
Navigating the Accelerated Capital Allowance (ACA) process can seem a bit daunting, but you don’t have to do it alone. Contact Going Solar today, and let's start your solar journey together.
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