Property owners may apply the self-consumption deduction when installing lithium batteries

The incorporation of energy storage systems, such as lithium batteries, into existing photovoltaic installations raises questions regarding access to the tax incentives provided for in the IRPF Law. The Dirección General de Tributos (DGT) has recently responded to this technical issue.

What the DGT has ruled

The administration has specified the scope of the deductions available for improvements in energy consumption:

• Self-consumption deduction: The sixty-second additional provision allows for the inclusion of storage systems within this deduction. This incentive applies to amounts paid until December 31, 2026.
• Energy efficiency deduction: To access the deduction under the fiftieth additional provision, it is necessary to certify through a certificate the reduction of non-renewable primary energy consumption by at least 30% or the improvement of the energy rating to class 'A' or 'B'.
• Prohibition of duplication: The DGT establishes that it is not possible to apply both deductions to the same installation in the same property.

What this means for you

If you are a homeowner and decide to add lithium batteries to your current photovoltaic system, you have the possibility of benefiting from tax incentives, but you must choose the appropriate route. If the installation of the batteries does not manage to raise the energy rating of the property or reduce primary energy consumption under the required terms, the most viable option will be the self-consumption deduction, which specifically contemplates storage systems.

What you should do

Before making the investment, it is necessary to evaluate the technical impact of the battery on the property. If the improvement allows for reaching class 'A' or 'B' or a 30% reduction in non-renewable primary energy consumption, you could opt for the energy efficiency deduction. However, since the simultaneous application of both deductions to the same installation is not permitted, it is fundamental to have the appropriate technical certification to support the chosen option to avoid contingencies with the Tax Agency.