Solar and battery incentives in Italy (2026)

A practical summary of the incentives for buying solar panels, inverters and batteries in Italy: what applies today, under which conditions, and what is still uncertain. We checked every point against the sources listed at the bottom of the page on the date shown; the rules change often, so check with your accountant before you decide.

Checked on 26 October 2026

10% VAT on goods for a solar PV system

Table A, part III of Italian Presidential Decree 633/1972 sets a 10% VAT rate for solar PV generation plants (item 127-quinquies), for finished goods supplied to build them, excluding raw materials and semi-finished products (item 127-sexies), and for services under the related construction contracts (item 127-septies).

What counts is the actual use: according to the Italian Supreme Court (order no. 11690 of 5 May 2021), the reduced rate applies whatever the buyer's role, provided the components are actually used to build the plant. The Italian Revenue Agency (resolution 269/E/2007) requires the buyer to declare, on their own responsibility, that the goods are intended for building the plant.

It covers panels, inverters and other finished components used to build a new system (or an extension that counts as partial new construction).
It does not cover simple upgrades or replacements on an existing system.
On SolarGear.eu, private customers with delivery in Italy can ask for 10% VAT: tick the option in the quote request and send us the signed self-declaration. Purchases with a VAT number are invoiced at 22%.

Storage batteries and VAT: the October 2026 ruling

In ruling no. 181 of 15 October 2026, the Italian Revenue Agency refused the 10% rate for a battery energy storage system (BESS) bought by a company and added to a PV plant that was already connected and running: standard 22% VAT applies. In the Agency's view the battery is technically separate from generation, the plant works without it, and in the case examined the battery also charged from the grid and took part in market services.

The ruling covers only that case. It does not deal with the typical home battery and says nothing about storage installed together with a new system: the sources that analysed it warn against extending it automatically to other situations.

Battery added to an existing system: after ruling 181/2026 there is a real risk of 22% VAT, especially for businesses.
Battery bought together with a new system: there is no specific recent ruling; ask your accountant before you buy.
Tax deductions are a separate matter from VAT, as the Agency repeated in the same ruling.

2026 renovation tax deduction: 50% or 36%, batteries included

Installing a PV system on an existing home counts as energy-saving work under article 16-bis(1)(h) of the Italian income tax code (TUIR). Law no. 199/2025 (the 2026 budget law) kept the higher rates for 2026: 50% for the main home of the owner or holder of a property right, 36% in the other cases, with a spending cap of €96,000 per housing unit, recovered over 10 annual instalments.

Batteries are not named in the law, but the Revenue Agency clarified (FiscoOggi, 25 March 2026) that a storage system integrated with the PV system is deductible under the same rules as the system itself and falls within the same spending cap.

2026: 50% for the main home, 36% for other homes; cap of €96,000 per unit.
2027 (under current law): 36% for the main home, 30% in other cases.
The system must serve a home, and the energy must be used mainly for self-consumption.
Pay by the dedicated bank transfer for tax deductions ("bonifico parlante") and keep invoices and technical documents.
Notify ENEA within 90 days of completion or commissioning (for storage, for works completed from 1 January 2019).

Net metering has closed: the alternative is the GSE feed-in scheme

Net metering ("scambio sul posto") is no longer available for new systems: the energy services operator GSE accepted the last applications until 26 September 2025, only for systems commissioned by 29 May 2025 (Decree-Law 181/2023 and ARERA resolution 457/2024). Existing contracts continue until they expire and cannot be renewed.

For new systems the alternative is the GSE dedicated withdrawal scheme ("ritiro dedicato", RID): energy fed into the grid is paid for, with no offsetting against consumption, at a guaranteed minimum price or at the hourly zonal price. RID can be combined with energy community incentives.

With net metering gone, self-consumption matters even more: a battery moves to the evening the energy you would otherwise sell at a low price.
If you have no interest in selling energy, consider a zero-export system.

Energy income grant: no 2026 call confirmed

The GSE "reddito energetico" funds PV systems for self-consumption for households with an ISEE (means-test indicator) up to €15,000, or up to €30,000 with at least four dependent children. The 2025 funds, about €103 million, ran out at once: on 13 May 2025 for the South and islands and on 23 May 2025 for the Centre-North.

In June 2026 there were no official dates for a 2026 call, and on the date we checked we found no confirmation that a new window had opened. Check the GSE website before counting on it.

Renewable energy communities (CER)

Under the CACER decree (Ministerial Decree 414/2023), energy communities receive a GSE incentive tariff on shared energy for 20 years; access is currently open until 31 December 2027. The PNRR capital grant of up to 40% of the investment, for systems in municipalities with fewer than 50,000 inhabitants, no longer accepts applications: the window ran from 8 April 2024 to 30 November 2025, and funded works must be completed by 31 December 2027.

In October 2026 trade associations asked the Ministry to extend the incentives to 2030: for now this is only a request, and no decree has changed the deadlines.

A system with a battery can join an energy community and stay in the dedicated withdrawal scheme for the energy fed into the grid.

What we have not checked

Regions and municipalities sometimes publish their own calls for solar and storage, and businesses have dedicated schemes (for example investment tax credits). This page does not cover them: ask your region, your municipality or your trade association.

Please note This is a general summary, not tax advice. Rules and the Revenue Agency's interpretations change often: before you buy, or apply a VAT rate or a deduction, check your case with your accountant.

Sources

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