Installing a solar system at home is becoming increasingly affordable in Greece. Today, there are two important tools that can reduce the financial burden of the investment:
- The tax deduction for home renovation and energy upgrades
- The new program “Upgrade My Home”, which provides interest-free loans from 5.000€ to 25.000€for energy upgrades.
Combining these two can make installing solar panels much easier and more financially viable.
Tax deduction for home energy upgrades
The state provides a tax deduction for home renovation and energy upgrade expenses, which can reach up to: 16.000€ in total
This deduction is spread over 5 years, with a maximum tax reduction of approximately 3.200€ per year.
However, there is an important limitation on how the eligible expense is calculated.
The rule for materials and labor
Tax legislation stipulates that:
Expenses for materials are taken into account up to an amount equal to 1/3 of the expenses for services.
Even if the cost of materials is higher, only this amount is taken into account when calculating the tax deduction.
Example: 10kW solar system with battery
Let’s look at a realistic installation example.
Cost excluding VAT:
- Materials (solar panels, inverter, battery, etc.): 13.640€
- Installation work: 2.800€
Total project cost: 16.440€
Tax deduction calculation
Based on the 1/3 rule. The eligible expense is therefore:
- Services: 2.800€
- Materials: 933€
Total eligible expense: 3.733€
Actual tax reduction
This amount is spread over 5 years. This means the homeowner can reduce their income tax by approximately: 746€ per year for 5 years
Total tax benefit: ≈ 3.733€
The new “Upgrade My Home” program
At the same time, the “Upgrade My Home” program offers financing for energy upgrades through:
- An interest-free loan from 5.000€ to 25.000€
-
A repayment term of up to 7 years
The program can be used for upgrades such as:
- solar systems
- energy storage systems (batteries)
- home energy upgrades
This allows homeowners to install the system without having to pay the full amount upfront.
Combining a tax deduction with an interest-free loan
Combining these two tools can make the investment particularly attractive:
- Financing the installation through an interest-free loan
- A tax reduction in the years ahead
- Lower electricity bills for decades
This means the actual cost of a solar system can be significantly lower than the initial price.
Free assessment for your home
At Solar Home, we help homeowners make the most of all available financing and savings options.
We can calculate for you:
- the right solar system for your home
- the actual cost after tax deductions
- the financing options available through programs
Contact us for a free assessment and discover how much you can save with a modern solar photovoltaic system.
