Italy: Photovoltaics: Incentives and Bonuses in 2027, What Changes

The 2027 Budget Law introduces new economic measures to support electricity generation through photovoltaics. The legislation allocates 1.2 billion euros to finance the construction of small and medium-scale solar power plants. In addition to these interventions, tax incentives remain available for citizens who decide to install panels on their homes.

The changes concern two distinct instruments: on one hand, public grants for specific energy projects; on the other, tax deductions on renovation expenses. Consequently, the beneficiaries, access conditions, and the timeframes within which resources can be utilized are all subject to change.

New funding for photovoltaics: how much can be obtained

One of the key provisions in the Budget Law concerns the funding of new facilities for solar energy production. The total allocation amounts to 1.2 billion euros, distributed between 2028 and 2030.

The program provides for financial coverage that can reach up to 40% of the eligible costs. This measure will apply to installations with a capacity not exceeding 1 megawatt, in compliance with the conditions set by the relevant regulations.

Management of the program will be entrusted to the Energy Services Operator (GSE), which will be responsible for implementing the provisions and administering the funds.

The total production capacity covered by the program is 3 gigawatts. The resources will be used to support the construction of new photovoltaic structures, reducing a portion of the costs required to initiate investments.

How will the financial support for installations work

Funding will be linked to the FER X mechanism, through which incentives are granted for electricity generated from specific renewable sources.

The new contribution covers the costs required for the installation of the systems, while the FER X system regulates the remuneration of the energy produced.

The possibility of using both forms of support will be governed by specific conditions. In particular, when an initial contribution is granted, the tariff applied to electricity may be reduced in accordance with the established rules.

A decree from the Ministry of Environment and Energy Security, prepared in coordination with the Ministry of Economy, will be required to define all operational aspects.

The decree must be issued within 120 days of the law entering into force and will establish the criteria for identifying eligible projects and the application procedures.

Solar panels on residential properties: which tax deductions will remain in 2027

For citizens interested in installing a residential system, the primary reference remains the system of tax incentives linked to building works.

According to the provisions of the bill, in 2027 a 50% deduction will continue to apply to expenses incurred for eligible works on the primary residence, provided that the required conditions are met.

For properties other than the primary residence, however, the applicable rate will be 36%.

The spending cap on which the benefit is calculated will remain fixed at 96,000 euros per property. This amount covers the total of all interventions eligible for the deduction and does not represent a sum directly disbursed by the State.

In the case of photovoltaic systems, eligible expenses include those for panels, equipment necessary for operation, and installation and connection activities, within the limits established by tax regulations.

The benefit is recovered through income taxes, in accordance with the allocation methods provided by law.

Energy efficiency, resources also for schools and hospitals

The Budget Law includes provisions dedicated to the energy efficiency of buildings used for public services.

These measures may apply to school buildings, university campuses, healthcare facilities, scientific centers, and sports facilities.

The eligible works include the modernization of heating systems and the adoption of energy-efficient equipment, such as heat pumps.

These funds are subject to different rules than the incentives for new solar installations and the building bonuses reserved for private individuals.

When will it be possible to apply for the new incentives

The measures described are part of the 2027 Budget Bill, which was still under parliamentary review as of November 5, 2026.

The final provisions will therefore only be known after the law is approved and any necessary implementing measures are published.

It must also be considered that the new funds for photovoltaics will be distributed from 2028 to 2030, while the building tax deductions already apply to expenses planned for 2027.

Those intending to purchase a solar system must verify which incentive is applicable to their specific situation, distinguishing between grants intended for energy investments and deductions recognized for work on residential properties.