The Italian government has raised the so-called eco-bonus for photovoltaic (PV) installations and storage systems from 50% to 110%, effectively enabling homeowners to install PV systems at no cost.
The higher subsidies are part of measures to bolster the country’s economy amid the COVID-19 crisis. Under the new provisions, the eco-bonus will be applied to all expenses incurred between July 1, 2020 and December 31, 2021, according to a report by pv-magazine.
The 110% eco-bonus will apply to three types of renovation projects – building insulation, the replacement of cooling and heating systems in apartment buildings, and the replacement of cooling and heating systems in family homes, according to the report.
PV projects that do not qualify for the 110% eco-bonus will still get the existing 50% tax break
PV projects that are linked to building renovations but do not qualify for the 110% super eco-bonus will still be awarded the existing 50% bonus.
Beneficiaries will have three ways to secure the eco-bonus: through the tax deduction over a period of five years, via the transfer of the tax-deductible allowance for installers and product suppliers, or through invoiced discounts.
The maximum price for PV systems is EUR 2,400 per kW installed
The maximum price set by the Italian government is EUR 2,400 per kW installed for PV systems and EUR 1,000 per kWh for storage systems, meaning that homeowners may have to face additional expenses – especially for storage – for projects that require high-quality components.
Over the past several years, the 50% eco-bonus for PV associated with sustainable-building projects has been one of the main drivers of solar energy development in Italy, according to pv-magazine.