As of 1 January 2025, crucial changes in the taxation of photovoltaic installations were introduced in Poland. The amendment of the property taxation rules affected owners of both home installations and large photovoltaic farms. The nonsubjective of these changes is to address taxation issues related to renewable energy sources and to align the right to a dynamically developing RES sector.
The amendment to the Act on Local Taxes and Fees introduced changes in the definition of ‘buildings’. Under the fresh rules, method devices specified as photovoltaic panels have been included in the construction category, meaning that they are subject to property tax. To date, the explanation of the rules has been ambiguous, leading to differences in taxation according to local taxation authorities. Currently, in order to avoid doubt, photovoltaic panels are clearly considered to be taxable structures.
The work to pay property taxation on photovoltaic panels applies primarily to owners of large installations specified as photovoltaic farms. In their case, the panels are the main component of the infrastructure for commercial energy production. The owners of specified installations must include the value of the panels in the property taxation base.
In the case of natural persons with home photovoltaic installations, the situation is more complex. If the panels are an integral part of a residential building, for example mounted on the roof, they do not increase the property taxation base. On the another hand, if panels are installed on the ground as a separate structure, they can be considered as a structure and subject to taxation. In practice, however, much depends on the explanation of local taxation authorities and the method details of installations.
Real property taxation rates for photovoltaic panels
The rates of property taxation are determined by local governments and may vary according to the municipality. Typically, for buildings connected with business activity, the rate is up to 2% of the building value per year. In the case of photovoltaic panels, this value is calculated on the basis of the first value of the installation, which means that the taxation may be respective 100 PLN per year for the average home installation. However, it is worth consulting the local municipality to get accurate information on the rates in force.
Tax exemptions and exemptions for prosumers
Despite the introduction of taxation on photovoltaic panels, there are mechanisms to support the improvement of renewable energy sources. Natural persons may benefit from a thermo-modernisation allowance which allows deduction from the taxation base of expenditure incurred in purchasing and installing a photovoltaic installation. The deduction limit is PLN 53,000 per person, which can importantly reduce investment costs.
In addition, farmers investing in PV can benefit from an investment allowance in the agricultural tax. This relief allows to deduct 25% of the value of the investment from the agricultural taxation due for a maximum of 15 years. This is an crucial support for the agricultural sector, encouraging investment in renewable energy sources.
Impact of changes on the profitability of investments in PV
The introduction of taxation on photovoltaic panels may affect the cost-effectiveness of investments, especially in the case of large commercial installations. Additional costs related to property taxation may extend the period of return on investment. However, the allowances and subsidies available, specified as the thermomodernisation relief or support schemes for RES, can compensate for these burdens and make the investment inactive viable.
Since 2025, owners of photovoltaic panels in Poland gotta face fresh taxation regulations. The taxing of the installation as a building under the property taxation applies mainly to large PV farms and any home land installations. However, thanks to the taxation incentives and support schemes available, investments in renewable energy sources stay attractive and profitable. Before taking
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