Check the technical requirements.
To access the tax credit, you must use photovoltaic modules manufactured within the European Union. This condition ensures compliance with the quality and safety standards set at EU level. In addition, the panels must guarantee a minimum efficiency of 21.5% for the module and 23.5% for the cell. If bifacial silicon heterojunction cells or tandem technology are used, the efficiency must be equal to or greater than 24%. Bifacial cells are designed to capture sunlight from both sides, thus increasing energy production compared with traditional modules. In any case, the technical characteristics are essential for accessing the incentive.
Once suitable panels have been selected, the system must be registered with the competent bodies, such as the Gestore dei Servizi Energetici (GSE), in order to obtain the necessary certifications attesting that the installation meets the required standards.
Plan the timing of the investment.
Investments must be made between 1 January 2024 and 31 December 2025. This period is crucial for securing access to the tax credit. If the credit is not used in full by that date, the remaining amount can be offset in five annual instalments starting in 2026. Carefully planning the timing of the investment is therefore essential to optimise the tax benefits.
Check the efficiency of the investment.
It is important to ensure that installing the photovoltaic panels brings a significant reduction in energy consumption. The legislation requires the investment to lead to a reduction in the production facility’s consumption of more than 10%, or a reduction in the specific consumption of the processes involved of more than 15%. This parameter must be checked carefully, as it is one of the essential requirements for accessing the tax benefit.
Prepare the documentation proving the actual improvements.
Before proceeding with the installation, you must submit a prior notification containing the details of the project and an estimate of the expected energy savings. In support of this notification, you must obtain an ex-ante certification, issued by an independent expert, confirming the potential energy savings arising from the investment.
After the system has been installed, you must obtain an ex-post certification attesting that the previously estimated energy-saving targets have been achieved. This certification is essential to demonstrate the effectiveness of the investment and to avoid penalties or loss of the incentive.
Apply for the tax credit.
Once the installation is complete and all the necessary certifications have been obtained, you can submit the application to the Agenzia delle Entrate within 12 months of the system’s installation, enclosing all the required documentation, including the certificates of conformity and the technical report. It is important to meet this deadline so as not to lose the opportunity to benefit from the tax credit.
Using the 5.0 tax credit.
The tax credit can be used as an offset from the fifth day after the GSE sends the documentation to the Agenzia delle Entrate. The full amount can be used by 31 December 2025. If, however, the credit is not fully offset by that date, the remaining amount can be split into five equal annual instalments starting in 2026.
Monitoring and maintaining compliance.
For as long as the tax credit is being used, you must implement a monitoring system to check the system’s energy output and ensure that the set energy-saving targets are met. It is also essential to keep all the documentation relating to the investment and the results achieved, as the competent bodies may carry out checks to verify the accuracy of the information provided.
Summary of the main stages
Check the technical requirements
Use photovoltaic modules manufactured in the European Union with the required technical characteristics, and register the systems with the competent bodies
Plan the timing of the investment
Schedule the project’s investments for the period between 1 January 2024 and 31 December 2025.
Check the efficiency of the investment
Check that the investment ensures a reduction in the production facility’s energy consumption of more than 10%, or a reduction in the specific consumption of the processes of more than 15%.
Prepare the documentation proving the actual improvements
Submit a prior notification with the details of the project and the estimate of the expected energy savings. Obtain the ex-ante and ex-post certifications confirming that the energy-saving targets have been achieved.
Apply for the tax credit
Submit the application to the Agenzia delle Entrate within 12 months of installation, enclosing all the required documentation, including the certificates of conformity and the technical report.
Using the tax credit
The tax credit can be used as an offset from the fifth day after the GSE sends the documentation to the Agenzia delle Entrate. As a single instalment by 31/12/2025. If not fully used, it can be used in five annual instalments starting in 2026.
Monitoring and maintaining compliance
Implement a monitoring system to check the system’s energy output. Keep all the documentation relating to the investment and the results achieved for any checks by the competent bodies.
Final considerations
The Ministerial Decree of 2 March 2024 sets out the conditions for accessing the 5.0 Tax Credit, including the mandatory use of photovoltaic modules manufactured in the European Union and the minimum required efficiency of the panels. This decree forms part of the Transition 5.0 Plan, linked to the National Recovery and Resilience Plan (PNRR), which promotes sustainable investment to relaunch the Italian economy.
The 5.0 Tax Credit is part of a broader regulatory framework established by the European Union. Regulation (EU) 2021/241 governs the use of funds for post-pandemic economic recovery, with a strong focus on the green transition. In this context, the European Green Deal, adopted in 2019, set the goal of reducing net greenhouse gas emissions to zero by 2050 and of raising the share of renewable energy consumed to 32% by 2030, as provided for by Directive 2018/2001/EU.
Italy’s Integrated National Energy and Climate Plan (PNIEC) is in line with these directives, providing for measures to increase the use of renewables and reduce emissions, thus contributing to the European sustainability goals.
Disclaimer: We recommend that you consult qualified tax advisers and technology companies to develop your company’s energy project.
