In recent years, photovoltaic energy has gained ground as a crucial source of energy production, both domestically and commercially. Its renewable and clean nature makes it attractive to both individuals and businesses, thanks in part to the active tax incentives on the installation of the systems. But what does the installation of a solar panel mean for the pockets of Italians? What are the fees for producing solar energy?

Incentives for the installation of photovoltaic systems

Let's start talking about incentives for the installation of photovoltaic systems: does the Italian state provide subsidies for individuals and companies?

The incentives for the installation of photovoltaic panels, both for private and business customers, offered by the Italian government in 2024 can be divided into two main categories: tax incentives and subsidised financing.

To the first category belong:

1. Photovoltaic Bonus: intended for low-income households and managed by the National Energy Income Fund. These are direct contributions for the installation of solar panels
2. IRPEF deduction: All taxpayers can benefit from tax deductions for the purchase and installation of photovoltaic systems. Deductions can vary depending on the technical characteristics of the system and include the Renovation Bonus (50%), Superbonus (70%) and Ecobonus (65%)
3. Reverse Charge: tax mechanism that allows companies to be exempt from immediate payment of VAT on the purchase of photovoltaic systems
4. New Sabatini: aimed at SMEs, this facility offers subsidised financing for the purchase of new machinery, plant and equipment, including photovoltaic systems
5. RES2 Decree: intended for companies wishing to install photovoltaic systems with an output of between 20 kW and 1 MW, this decree offers incentives based on the amount of energy fed back into the grid
6. Place Exchange/Dedicated Collection: incentive that allows companies to sell excess energy produced and not consumed to the national system. The subsidy is disbursed through the GSE.

Companies have the option of choosing the rental operational for photovoltaic systems, enabling them to face minimal upfront costs and benefit from immediate tax breaks. These incentives encourage both individuals and companies to install photovoltaic systems, contributing significantly to reducing initial costs and promoting clean and sustainable energy production. In addition to tax incentives and subsidised financing, the Italian government is implementing bureaucratic simplifications and providing technical support to further promote the adoption of renewable energy.

Tax treatment of energy produced

Many private individuals and entrepreneurs wonder whether they have to pay taxes on their photovoltaic system.

The photovoltaic systems represent a promising source of clean energy, but they also raise intricate tax issues. Let us be clear: self-consumption is not subject to taxation.

In the past, incentives such as energy accounts did not involve taxation as they were intended to promote the adoption of photovoltaics. However, with the development of on-site exchange, things have changed. Periodic payments from on-site exchange constitute taxable income. Today, the transfer of surplus energy to the national grid is taxable. This treatment varies according to the rated power of the system and the contextual use.

For domestic installations or installations of less than 20 kW, the feed-in tariff contribution is not taxed, as it is considered private use. However, the settlement of surpluses, which involves the sale of excess energy, generates taxable income. Anyone who is not VAT-registered and owns an installation under 20 kW must declare the payments received as “other income”. This means that, depending on income, taxpayers have to pay a varying percentage of their income to the tax authorities. For example, for a taxpayer with an annual income of less than EUR 15,000, the rate is 23%, while for higher incomes it can go up to 43%.

This has a significant economic impact. For example, a 3 kWp system generating 3,800 kWh/year, with a self-consuming 40%, may see a decrease in annual revenue due to taxes. However, there is an advantageous alternative: the on-site exchange with self-consumption. By taking advantage of the 50% tax deduction, consumers can reduce their income tax.

For commercial installations of 20 kW or more, invoices must be issued and VAT and direct taxes paid, as for any other commercial activity. In conclusion, while self-consumption is not taxed, the sale of energy may involve taxation depending on the specific circumstances.

Conclusions

The fiscal framework for solar installations, especially for companies, represents a crucial challenge in promoting the adoption of renewable energy. While tax incentives are crucial to stimulate investment in this sector and foster the transition to a low-carbon economy, it is equally important to ensure a fair and effective taxation system.

The impact of taxation on self-consumption and the sale of excess energy to the grid should not discourage companies from investing in solar installations. A sustainable future depends on a regulatory and fiscal framework that favours the widespread adoption of renewable energy, including solar installations. Targeted fiscal policies can play a key role in achieving this goal by encouraging investment, promoting innovation and contributing to the creation of a sustainable resource-based economy.

Do you want to be part of the change, of an energy transition towards the decarbonisation? Find out about the installation of photovoltaic systems on company roofs and start saving on your utility bills and reducing your impact on the environment.