Does your home or community of owners have photovoltaic solar panels?…If the answer is affirmative, you can enjoy a deduction in Personal Income Tax (IRPF). This deduction can be from 20% to 60% of the total amount invested in improving the energy efficiency of the house or building. Thus, the installation of solar panels is not only a profitable investment, but it can also be beneficial for your tax return.
At PACI Global we take care of everything so you don’t have to worry about a thing. If you are interested in installing photovoltaic solar panels, request a personalized quote and discover how much you can save on personal income tax. We’ll make sure the process is as easy and convenient as possible…👍!!!
Personal income tax deductions for installing photovoltaic solar panels in Spain: from 20 to 60%
The use of solar energy for self-consumption in Spain does not stop growing, and more and more households are benefiting from all the advantages of having photovoltaic solar panels installed in their homes, including environmental and, of course, economic.
Having a photovoltaic installation not only means energy savings and savings on electricity bills, but also the government offers aid and bonuses to encourage the use of renewable energy, being the deduction in personal income tax for the installation of photovoltaic solar panels one of the most interesting and profitable. Basically we find 3 application cases:
Case 1: Deductions of 20%.
Case 2: Deductions of 40%.
Case 3: Deductions of 60%.
What is the personal income tax deduction to install photovoltaic solar panels?
The personal income tax deduction to install photovoltaic solar panels consists in the fact that, if your home or your community of owners has photovoltaic solar panels, you can deduct between 20% and 60% of Personal Income Tax (IRPF) from the amount total investment made in improving the energy efficiency of the house or building.
In other words, for every 5 euros invested in photovoltaic installations, it can be deducted from your Income Statement, which represents an interesting saving that is added to the rest of the subsidies and aid available and that will considerably reduce the initial cost required to add solar panels. photovoltaics to your home.
Who can claim the deduction for installing photovoltaic solar panels?
The personal income tax deduction for installing photovoltaic solar panels may be requested by all those who have carried out installation work on photovoltaic solar panels in their home before December 31, 2024.
In order to request any of the three deductions that exist, full ownership of the property must be proven, the usufruct or bare ownership not being valid.
It must be taken into account that what is going to be deducted will fall within the % ownership of the property. If you want to qualify for 100% of the deduction, you must be the 100% owner of the property. If you only have 50%, you will be eligible for 50% of the deduction.
The same work does not give the right to more than one deduction, but two different works can give the right to the same deduction as long as each work meets the requirements.
The deduction is only applicable to the full state fee.
How much can you deduct in 2023?
The deduction percentage goes from 20% to 60% and the maximum annual base ranges between 5,000 and 15,000 euros per year depending on which of the following specific cases you want to apply.
Case 1: Deductions of 20%
If you add photovoltaic solar panels to your home, both owned and leased, you can deduct 20% of the amount invested in your installation in personal income tax as long as it meets the following requirements:
- The installation works are carried out before December 31, 2024.
- The reduction in the sum of the heating and cooling demand indicators of the Energy Efficiency Certificate is at least 7% after carrying out the work with respect to the last Certificate prior to the installation of the panels.
- The Energy Efficiency Certificate has been issued before January 1, 2024.
- The dwelling is for habitual use or is rented. Second homes are not included in this case.
Maximum amount to be deducted in Case 1
In this case, you can deduct 20% of a maximum annual base of 5,000 euros per year.
Case 2: Deductions of 40%
By installing photovoltaic solar panels on your property or in your rental home, you can deduct 40% of the total invested as long as you meet the following requirements:
- The installation works are carried out before December 31, 2024.
- The reduction in the consumption of non-renewable primary energy of the Energy Efficiency Certificate is at least 30% after carrying out the work with respect to the last Certificate prior to the installation of the panels. You can also deduct 40% if the energy rating of the home obtains an “A” or “B” energy class. If you go from a “B” to an “A” it is also valid.
- The Energy Efficiency Certificate has been issued before January 1, 2024.
- The dwelling is for habitual use or is rented. Second homes are not included in this case.
Maximum amount to be deducted in Case 2
In this case, you can deduct 40% of a maximum annual base of 7,500 euros per year.
Case 3: Deductions of 60%
All those people who have a home located in a residential building with the installation of photovoltaic solar panels and in which the energy efficiency improvement works affect the entire building or single-family home may benefit from the 60% deduction, provided that when you meet the following requirements:
- The installation works are carried out before December 31, 2024.
- The reduction in the consumption of non-renewable primary energy of the Energy Efficiency Certificate is at least 30% after carrying out the work with respect to the last Certificate prior to the installation of the panels. You can also deduct 40% if the energy rating of the home obtains an “A” or “B” energy class. If you go from a letter “B” to a letter “A” it would also be valid.
- The Energy Efficiency Certificate has been issued before January 1, 2025.
- In this case, parking spaces or storage rooms purchased with the home are also taken into account.
Maximum amount to be deducted in Case 3
In this case you can deduct 60% of a maximum annual base of 5.00 euros per year. Remember that if the amount to be deducted is greater than this maximum of 5,000, you can deduct the rest in the following 4 years with the same annual limit, and the total deducted cannot exceed 15,000 euros.
This would be used above all in a community of neighbors where a spill is made and each neighbor pays an amount per month until the total bill is paid. For this reason, it could be deducted in the following financial year, since the full payment would not be made in a single financial year.
How do you claim the deduction for installing solar panels?
The personal income tax deduction for the acquisition of self-consumption energy facilities is state-owned and works in the same way wherever you live. This bonus is requested through the income statement and it is essential to have the Energy Efficiency Certificate before and after the works to be eligible for it.
At PACI Global we know that the process of obtaining the Certificate can be somewhat complex, so leave it to us! Ask us for a quote and forget about the efforts to get it.
Can it be made compatible with other subsidies for self-consumption?
Yes, the IRPF deduction is perfectly compatible with other subsidies that you can benefit from for installing photovoltaic solar panels in your home, such as ICIO and IBI discounts or Next Generation European aid. Keep in mind that the amount received from these last aids must be deducted from the total investment deductible from personal income tax.
The importance of the energy efficiency certificate
In order to enjoy the personal income tax deduction of between 20% and 60% of the initial investment, as we have mentioned previously, it is essential to be in possession of an Energy Efficiency Certificate that indicates that the heating demand indicators and cooling of your home or the consumption of non-renewable primary energy have been reduced compared to before being in possession of a photovoltaic panel installation.
This certificate will be issued by a qualified technician who will evaluate and analyze the specific characteristics of the energy consumption of your habitual residence. The rating system goes from A to G, where A corresponds to optimal efficiency and G to the lowest possible efficiency.
It is very important that the Energy Efficiency Certificate prior to the works does not have more than two years from the completion of these.
At PACI Global we want to make it easy for you and we can take care of managing it. Request your personalized budget and discover how much you can deduct from personal income tax with the installation of your photovoltaic solar panels.
