The switchover from fossil fuels to renewable energy sources is one of the great challenges of our time. Much has already been done in Italy to encourage the use of alternative energy sources. Moreover, our country enjoys some objective advantages, in terms of climate and geography, which make the use of clean energies such as solar and wind power particularly advantageous. Incentives for solar panels have been among the most popular large-scale initiatives in this sense. A photovoltaic bonus has also been awarded for 2020, offering substantial rebates on the installation of solar power systems.
Solar incentives in Italy
The Italian photovoltaic bonus has been confirmed for the whole of 2020 and covers the installation of new units, with all the necessary components to put them into operation. This scheme falls within the wider scope of the so-called “refurbishment bonus” and is designed to encourage this branch of the economy and also to push the country towards ever-higher levels of energy optimisation. The installation of solar panels is considered extraordinary maintenance and it is up to the Inland Revenue to refund 50% of the cost over ten years, in the form of tax cuts. The bonus refers to reimbursements on a maximum total expenditure of € 96,000 per building.
Which expenses can be claimed as a deduction from the photovoltaic bonus
The bonus covers all types of expenses that may be faced when installing solar panels, from the actual installation, complete with manpower, to the design of the system with all the necessary professional skills. It also includes expenses related to on-site inspections and technical reports that may be required prior to the installation. A further advantage concerns VAT, which is reduced to 10% in cases where the solar panel system is purchased following the winning of a contract and directly from the company that will then carry out the installation.
Who is not entitled to the photovoltaic bonus?
Clearly, as with all incentives, there are limits to the allocation of the photovoltaic bonus. For example, it is not possible to apply for it for a property that will be built in the future or that is not yet registered at the time of application. Properties for which there are delays or irregularities in the payment of statutory taxes and duties are also excluded.