Tax benefits of a photovoltaic system

Photovoltaic systems, or solar panels, are becoming increasingly popular. This is due to ecological reasons, but also financial and tax perspectives. Particularly with the energy shortage, more and more households are inquiring about the clean alternative on the roof. 

Tax Implications

Although having a photovoltaic system on the roof is almost always a value-enhancing investment, it can be fully deductible in almost all cantons in the tax declaration. Thanks to legal regulations, support measures for renewable energy sources are considered maintenance, not investment. Only the canton of Lucerne does not accept this regulation.

Investments, which are considered as maintenance, cannot be deducted from the property gain tax, however.

Using the Photovoltaic System to Counter Tax Progression

Thus, the tax benefits are enormously large, as purchasing a photovoltaic system can counteract tax progression. Since the tax rate is progressive and not linear, a photovoltaic system can have significant effects on the tax bill, especially for households with high taxable income.

Conclusion

Solar panels make sense not only in times of energy shortage. The tax benefits practically have no downsides. As long as the financial resources for an investment are available, one can save a lot of money in the long run and do something good for the environment at the same time.