What tax benefits are there for solar energy systems?
September 7, 2022 | 50,00 EUR | answered by Anna Richter
Dear Tax Lawyer,
My name is Lukas Peters and I am the owner of a solar energy system on the roof of my house. I am aware that solar energy is an environmentally friendly and sustainable energy source, but I am wondering if there are also tax benefits that I can take advantage of.
Currently, I am using a portion of my electricity from my solar system and selling the excess electricity to my energy provider. I am wondering if I can claim tax breaks or deductions for this.
Furthermore, I have invested in the installation and operation of my solar energy system and I am wondering if I can claim tax depreciation for this. Are there any specific regulations or incentives that would allow me to deduct the costs of purchasing and installing my solar energy system from my taxes?
I am concerned that I may be overlooking tax advantages that I may be entitled to when using solar energy. Therefore, it would be very helpful for me if you could provide me with an overview of the various tax benefits for solar energy systems and suggest possible solutions to maximize these benefits.
Thank you in advance for your support and advice.
Sincerely,
Lukas Peters
Dear Mr. Peters,
Thank you for your inquiry regarding tax benefits related to your solar energy system. It is commendable that you have chosen an environmentally friendly and sustainable energy source. Indeed, there are various tax advantages and deductions that you can take advantage of.
First of all, you can deduct the income from selling excess electricity to your energy provider for tax purposes. This income is generally to be reported as business income and is subject to income tax. However, you can also deduct certain expenses related to your solar energy system, such as maintenance and repair costs, insurance premiums, or depreciation.
Consult your tax advisor about the possibility of claiming the acquisition and installation costs of your solar energy system through the so-called declining balance depreciation (AfA) for tax purposes. The AfA allows you to deduct the acquisition costs as operating expenses over a certain period of time and thus reduce your tax burden.
Furthermore, there are special funding programs and tax incentives for the use of renewable energies, such as the Renewable Energy Sources Act (EEG) or the Kreditanstalt für Wiederaufbau (KfW). These programs offer you the opportunity to receive grants or low-interest loans for the acquisition and installation of your solar energy system.
It is important that you inform yourself in a timely manner about all tax benefits and, if necessary, submit corresponding applications to fully utilize them. Your tax advisor can support you in this and help you not to overlook any potential tax advantages.
I hope that I could help you with this information and I am available for further questions. Thank you for your interest in tax benefits related to solar energy systems.
Best regards,
Anna Richter
Tax Lawyer
