Rooftop solar pays off for companies in tax terms too – the equipment can be depreciated, a VAT payer usually recovers input VAT on the purchase, and grants are available. But Slovakia and Czechia now diverge sharply: from 2026 Slovakia taxes even self-consumed electricity above 50 kW, while Czechia abolished its special 20-year depreciation rule for solar plants from August 2025. The right answer depends on which side of the border you invest.
Does company solar make sense from a tax angle?
Solar for a business is more than a lower electricity bill. The investment enters the tax base through depreciation, cuts exposure to wholesale power prices and, set up well, can be combined with a grant. It also brings obligations worth knowing before you install – and here the two countries differ more than the shared EU framework might suggest.
The starting point is the same on both sides: treat the plant as long-term fixed assets, not a one-off expense. How the investment spreads across the years drives both the profit and the tax. For the wider context of running a company in the two markets, see our overview of Slovak tax advisory for companies.
How is a solar plant depreciated in Slovakia?
In Slovakia a solar installation costing over EUR 1,700 is fixed assets and is depreciated by component, each in a different class under Annex 1 to Act No. 595/2003 Coll.: the panels over 6 years (class 2), the inverter over 8 years (class 3), and the mounting structure fixed to the ground over 20 years (class 5). Fencing and minor structures fall into class 4 over 12 years.
Splitting the plant into components is not a formality – it materially changes how fast the investment reaches your costs. Accelerated depreciation is available for the technology part, so correct classification is worth leaving to an accountant.
How does Czechia now depreciate solar plants?
Until 31 July 2025 Czech law imposed a special regime under Section 30b of the Income Tax Act: solar plants were depreciated evenly over 240 months – exactly 20 years. An amendment to the Energy Act (No. 458/2000 Coll.) abolished Section 30b from 1 August 2025, returning solar to the general depreciation rules under Section 30.
Plants brought into use between 1 July 2024 and 31 July 2025 may choose between the old and the new regime; those acquired from 1 August 2025 must use the general rules, classifying each component into a depreciation group and writing it off evenly or on an accelerated basis. For new Czech investors this shortens and reshapes the depreciation profile compared with the old flat 20-year write-off.
When can a company recover VAT on solar?
In both countries a VAT payer using the plant for taxable supplies can generally recover input VAT on the purchase. Selling surplus electricity to the grid is a taxable supply – at the reduced VAT rate of 19 % in Slovakia and the standard 21 % in Czechia – because electricity counts as goods. Where the output mixes taxable and non-taxable use, the deduction is apportioned by real use, so it pays to document that split from the outset.
What about electricity tax and other duties?
This is where the two systems part ways. From 2026 Slovakia levies excise duty on electricity even for own consumption, at EUR 1.32 per MWh, once installed capacity exceeds 50 kW; below that threshold the electricity is exempt with no obligations. Plants above 50 kW become an “electricity undertaking” and must register with the customs office and file returns.
Czechia also has an electricity tax (Act No. 261/2007 Coll.), but with exemptions for renewables whose exact scope must be checked for the given output. In practice self-consumption from smaller Czech installations is treated more favourably than under the new Slovak rule – a difference that can shift the economics of the same plant across the border.
What grants are available for company solar?
Slovakia runs the Zelená podnikom voucher scheme through the SIEA agency for micro, small and medium enterprises, with vouchers up to EUR 50,000 covering 40–45 % of eligible costs and a contribution to a mandatory energy audit; a new application round is expected in 2026. Czechia supports businesses mainly through the RES+ call of the Modernisation Fund for installations from about 50 kWp to 5 MWp with own consumption, offering up to 30 % of eligible costs, often combinable with battery storage.
In both countries the grant can be combined with depreciation, so the subsidy and the tax shield do not cancel out. Because parameters and deadlines change with each call, confirm the current terms with SIEA or the Czech State Environmental Fund before you commit.
Planning company solar in Slovakia or Czechia and unsure how to depreciate it, claim a grant and avoid a surprise on electricity tax? We will map it out with you.
FAQ
Does a company pay tax on electricity it generates and uses itself?
In Slovakia, from 2026 yes – excise duty of EUR 1.32 per MWh applies to self-consumed electricity once installed capacity exceeds 50 kW; below that the electricity is exempt. Czechia has an electricity tax with exemptions for renewables and treats self-consumption from smaller installations more favourably. The exact position always depends on capacity and output.
How long is a solar plant depreciated in Slovakia and Czechia?
In Slovakia by component: panels over 6 years, the inverter over 8 years and the ground-fixed structure over 20 years. In Czechia the special 20-year regime (Section 30b) was abolished from 1 August 2025, so new plants follow the general rules, classifying each part into a depreciation group. Older Czech plants may keep the former 240-month schedule under transitional rules.
Can grants be combined with depreciation?
Yes, in both countries. Slovakia’s Zelená podnikom voucher (up to EUR 50,000, 40–45 % of eligible costs) can be combined with accelerated depreciation, and the Czech RES+ call (up to 30 %) works alongside the general depreciation regime. Confirm the current call parameters with SIEA or the Czech State Environmental Fund, as they change over time.