Solar Incentives in Italy

The Superbonus was introduced in 2020 at 110% to encourage major building energy renovations. It has been progressively reduced: 90% in 2023, 70% in 2024, and 65% for 2025–2026. For 2026, the 65% deduction applies to qualifying interventions including solar PV installation when combined with a primary energy efficiency measure (e.g., insulation, heat pump). The deduction is spread over 10 annual installments. Important note: the option to transfer the tax credit (cessione del credito) or apply a direct invoice discount (sconto in fattura) has been largely discontinued for new contracts — the deduction must be claimed directly by the taxpayer on their annual IRPEF/IRES return. The Superbonus at 65% is significantly less advantageous than the original 110% scheme. The deduction applies to expenses incurred on buildings, not stand-alone solar ground-mount systems.

Scambio sul posto is Italy's virtual net metering mechanism, managed by GSE (Gestore dei Servizi Energetici). It allows producers to virtually 'exchange' energy injected into the grid with energy withdrawn at a different time. The annual settlement compares the value of energy injected with the value of energy consumed, with GSE paying a contribution (contributo in conto scambio) that accounts for the economic value of the exchange. Systems up to 200 kW are eligible, including residential, commercial, and small industrial users. Note: Italy is transitioning toward Comunità Energetiche Rinnovabili (CER — Renewable Energy Communities) as an alternative framework, which may offer higher incentive rates for shared self-consumption in apartment buildings and neighborhoods. New system registrations should evaluate whether CER membership is more advantageous than traditional Scambio sul posto.

Conto Termico 2.0 (D.M. 16 February 2016, as updated) is a GSE-managed incentive program primarily targeting small-scale renewable heat and high-efficiency systems in residential and public sector buildings. Solar PV is eligible under the scheme for small systems, particularly when combined with heat pump or thermal storage measures. The incentive covers up to 65% of eligible installation costs for public administration and up to 40% for private residential customers, paid in annual tranches. The program has an annual budget cap — when exhausted, new applications enter a waiting list. Applications are submitted through the GSE's IT portal (Portale Informatico). Conto Termico is particularly useful for applications where the Superbonus is not available or has been exhausted.

Solar PV installation on residential buildings qualifies for the reduced IVA (Imposta sul Valore Aggiunto) rate of 10% under Italian tax law (D.P.R. 633/1972, Table A, Part III). The standard Italian IVA rate is 22%, making this a 12-percentage-point saving. On a €15,000 system, this represents €1,800 in savings. The reduced rate applies to the installation service and associated materials when performed on existing residential buildings. New construction may be subject to different rates. The installer's invoice must correctly identify the work as maintenance or renovation of a residential property to apply the 10% rate. Battery storage systems installed as part of the solar system are also covered at the reduced rate.