Tax deductions for photovoltaics

Estimated reading time: 4 minutes, 50 seconds

Tax deductions for photovoltaics are state aid which, combined with the rapid fall in prices in the sector, awareness of one’s consumption style and the fight against energy waste, makes the installation of solar panels even more convenient and attractive especially with a view to participating in the Energy Communities.

The Italian state has long been attentive to the production of sustainable energy to meet the national objectives of the United Nations 2030 Agenda. For this reason, it has provided for an incentive for photovoltaics which is configured as a tax advantage that helps citizens to amortize and reduce the cost of installing a photovoltaic system and is a proactive stimulus in the choice of switching to energy from RES (Sources of Renewable Energy) for domestic consumption.

This fiscal aid in fact supports the purchase of a photovoltaic system, an investment that pays for itself over time both economically and in terms of the carbon footprint of your home, thanks to its life cycle superior to any other product of human ingenuity. . Specifically, the installation of a photovoltaic system with storage is a fundamental action to achieve energy independence from fossil fuel sources, especially when combined with participation in an energy community for the collective self-consumption of energy.

But accessing tax deductions is only the last step to save thanks to photovoltaics. To maximize the return on your investment, you must first be aware of your consumption habits and therefore your needs and then proceed with the installation of the most suitable system for you at a sustainable cost. Regalgrid can be your faithful ally in every part of this journey, first of all by allowing you to know your consumption in detail thanks to its SNOCU, and later, after installation, even enabling you as members of a digital energy community.

Only at this point can you act as conscious actors in the world of digital energy and request the tax deductions you are entitled to.


Budget Law 2020: deductions for photovoltaics confirmed

The 2020 Budget Law of 30/12/2019 extends Home Bonuses active already during 2019 in the field of energy efficiency until 31 December 2020.

Among these we find the Restructuring Bonus, the tax deduction identified by the DPR 917/86 art. 16.bis, intended for restoration, conservative rehabilitation and renovation of one’s home, including interventions for energy saving and the use of renewable energy sources. For the installation of photovoltaic solar systems in the home, the tax benefits provided for by the legislation consist of a 50% personal income tax deduction, which also include any energy storage device.


The conditions of the tax deductions for photovoltaics

Anyone who possesses the requirements will be able to obtain tax relief for photovoltaics by 31 December 2020: before applying for them, it is better to know the requirements and conditions. In fact, there is a maximum allowable spending limit of 96,000 euros for each real estate unit (the single property plus all its appurtenances) for work undertaken at home. Furthermore, the personal income tax refund will take place in 10 years. This means that the Revenue Agency will return you half of the amount you spent, through an annual tax reduction.

How much is the annual repayment? Divide the amount spent in half and then divide it by 10; or more simply:

Annual tax deduction = investment / 20

Added to this is also the reduced 10% VAT on the works carried out for the photovoltaic system.

But let’s see the characteristics necessary to access this state subsidy.


Who can apply for the 2020 Restructuring Bonus for photovoltaics

In the field of renewable sources, anyone who has installed starting from 1 January 2020 is entitled to tax incentives:

a domestic installation of photovoltaic panels of less than 20 kW or expanded an existing system;
the storage system, at the service of a domestic system not incentivized by the Energy Account.
The facility is aimed at individuals who have incurred these restructuring costs and who are subject to IRPEF, the personal income tax.

To apply, the applicant must meet one of the following conditions:

Being the owner of the residential property on which the intervention was carried out
Be the holder of a lease or loan for use
Being a family member of the owner or tenant
Being a cohabitant more uxorio of the owner / tenant.
It is essential to underline that members of an energy community can access the Restructuring Bonus for their photovoltaic system and / or for the storage system.


Expenses deductible with the Restructuring Bonus for photovoltaics

The deductible expenses are all those that allow you to have a “turnkey” photovoltaic system:

  • Purchase of components
  • Cost of labor for installation
  • Design expenses
  • Costs of appraisals, inspections and authorizations
  • VAT


How to get the IRPEF deduction for photovoltaics

To obtain the deductions of the House Bonus defined for the installation of the photovoltaic system, it is necessary to notify ENEA (National Agency for New Technologies, Energy and Sustainable Economic Development) within 90 days from the date of completion of the works.

How? By registering on the portal to request concessions for building renovations, entering your data, property data (location, cadastral data, property …) and data on the type of intervention carried out. Here is a short guide from ENEA that will explain how to do it.

Subsequently, in the tax return you will have to deliver:

  • Receipts of payments (made by bank transfer)
  • Invoices for the purchase of goods and materials for the plant
  • Municipal authorizations
  • Owner Consent Statement


Is photovoltaic part of the Ecobonus?

The answer is unequivocal: no. The Ecobonus is applied to solar thermal panels (called collectors) for the production of heat or if you decide to connect a heat pump to your photovoltaic system. In that case, only the heat pump will enjoy the 65% tax advantage and will allow you to reduce your air conditioning and heating costs.

If you want to know more and have clear ideas, at this link you can find a poster with all the facilities dedicated to your home for 2020.

Being aware of your rights and the possibilities related to photovoltaics will make you active members of the world of energy and digital energy communities, independent but involved.


The current tax deductions implemented by the Italian State follow the direct incentives sustained in the past thanks to the various editions of the Energy Accounts, no longer active today. These concessions are an important tool to increase the economic advantage and therefore reduce the payback time of those who want to invest in very safe energy devices that allow a commendable choice for greater individual and collective sustainability.

As we told you in our article on the photovoltaic system with storage, the investment is not huge and extremely lower when compared to what you would have sustained even just 8 or 9 years ago – which is why the Conti Energia incentives were necessary. This new accessibility is possible thanks to the great reduction in production costs of these devices which have also improved their energy yield.

But the return on investment can be further improved by joining an Energy Community, a form of aggregation and collective self-consumption in which Regalgrid has believed for years, and for which it has concentrated on the development of all those services necessary to support all users of electricity, from simple consumers, for understanding and improving their energy behavior, to prosumers, up to communities and the various possible forms of aggregation of users who generate, accumulate or consumers of renewable energy.