The extension of this tax incentive could prove to be a major boost to residential storage uptake in Italy. The existing scheme has been very successful in developing the Italian residential solar market and including energy storage is a big step forward in incentivising the adoption of storage technologies. The Italian market already represents around 20% of of total European residential storage demand and this now looks set to grow. Germany is setting the bar having recently reached 100,000 residential energy storage installations, so Italy has a way to go to compete but with the huge PV base and this positive news it certainly put them in a great position.
According to a recent document from the Italian Revenue Agency, the personal income tax (Irpef) deduction equal to maximum 50% of expenses incurred, up to a maximum amount of €96,000, can be also applied to the purchase of a storage system, if this is installed simultaneously or after the PV system is deployed. If installed under these conditions, the agency stressed, the storage system is configured as “an element functionally connected to the plant and able to improve its potential.”