Italian Revenue Agency Clarifies: PV Storage Systems Eligible For 50% And 36% Tax Credits

 

 

 

Italian Revenue Agency Clarifies: PV Storage Systems Eligible for 50% and 36% Tax Credits, Included in Renovation Subsidy Scheme

 

 

 

On March 25, the Italian Revenue Agency clarified that energy storage systems installed alongside photovoltaic (PV) systems are eligible for inclusion within the scope of tax credits under the renovation subsidy scheme. This clarification confirms that expenses related to storage systems integrated with PV systems qualify for tax deductions; specifically, batteries are subject to the same tax regime as the PV systems themselves and do not require separate or independent incentive mechanisms.

The classification for renovation subsidies remains unchanged: primary residences are eligible for a 50% tax credit, while other properties qualify for a 36% credit. In both instances, the maximum deduction cap per property unit is €96,000, and the tax credit is amortized over a recovery period of 10 years. As an integral part of the overall system, expenses incurred for batteries are counted toward this aggregate spending limit.

The system in question must serve a residential property unit; eligibility for benefits is determined by the system's functional purpose rather than its physical location. An energy storage system qualifies for the incentive based on its functional interconnection with the PV system and its contribution to the building's energy efficiency. Eligible expenses include costs for PV systems designed for self-consumption, energy storage systems, inverters and energy management systems, electrical engineering works, and associated construction interventions. Existing requirements remain in force-such as making payments via bank transfer, retaining technical and tax documentation, and transmitting data to ENEA (the Italian National Agency for New Technologies, Energy and Sustainable Economic Development) within 90 days of project completion. Regarding energy storage systems specifically, this reporting obligation applies to projects completed on or after January 1, 2019.

In addition to these tax credits, further benefits are planned for 2026: renovation projects that include the installation of PV systems equipped with energy storage are eligible for a reduced VAT rate of 10%, replacing the standard rate of 22%. Certain regions or municipalities may offer additional grants or local renewable energy tenders; these incentives can serve as supplements to the national tax credits. Batteries may also qualify for tax deductions under the "Superbonus" scheme; however, the scope of this incentive has been significantly curtailed. It now applies exclusively to interventions carried out in municipalities located within the areas affected by the earthquakes of April 6, 2009 (in the Abruzzo, Lazio, Marche, and Umbria regions) and those areas declared to be in a state of emergency as of August 24, 2016. Furthermore, eligibility is strictly limited to expenses incurred in 2026 for the purposes of reconstruction and seismic risk reduction. This subsidy allows for a tax deduction of up to 70% on costs incurred for installing photovoltaic systems integrated with battery storage, provided that the installation constitutes part of broader energy efficiency measures.