Italy solar energy taxation and 2026 incentive guidelines

In Italy, the taxation of income from solar panel installations depends on the system's capacity, purpose, and how energy is sold. For domestic systems up to 20 kW used primarily for self-consumption, certain contributions like 'scambio sul posto' and older 'Conto Energia' incentives remain non-taxable. However, income from selling excess electricity to the grid may be subject to taxation and must be declared. If a system is used for business activities or is primarily intended for energy sales, the revenue is classified as business income.

New regulations coming in 2026 will impact specific categories, including newly established agricultural businesses. For residential users, small-scale photovoltaic kits—such as those for balconies or facades—can offer energy savings. In 2026, these installations may qualify for renovation bonuses, providing a 50% tax deduction for primary residences and 36% for other cases. Additionally, the 'bonus mobili' may offer a 50% deduction on expenses up to 5,000 euros for items related to renewable energy use, provided specific documentation and payment requirements are met.