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Home / News / Is it worth declaring solar energy on your income tax return?

Is it worth declaring solar energy on your income tax return?

Including the system in your income tax return can bring tax advantages by updating the property value; learn more!
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  • Photo by Henrique Hein Henrique Hein
  • March 23, 2026, at 16:10 AM
1 min 28 sec read
Canal Solar - Solar energy reduces tax on the sale of real estate; see how to declare it on your income tax return.
Photo: Rafa Neddermeyer/Agência Brasil

The deadline for filing the 2026 Income Tax return officially began this Monday (23). The program is already available for download and will continue until May 29.

In this context, taxpayers who have solar energy systems installed in their homes can obtain tax advantages by declaring the investment as a property improvement.

This practice does not change the amount of tax paid at the time of filing, but it can generate significant savings in the future, especially in cases of sale of the property. This is because the amount invested in the photovoltaic system can be incorporated into the acquisition cost of the property.

In practice, this update reduces the capital gain realized in a potential sale, which can lower the tax due on the profit from the transaction.

For example, a property acquired for R$ 300 and later sold for R$ 500 would generate a gain of R$ 200. However, by including an investment of R$ 20 in solar energy as an improvement, the acquisition value becomes R$ 320, reducing the taxable profit to R$ 180.

Considering a 15% tax rate on capital gains, the tax due would fall from R$ 30 to R$ 27, generating savings of approximately R$ 3 for the consumer.

To guarantee the benefit, it is essential to keep all investment documentation, such as invoices for equipment and installation services, as proof may be requested by the Internal Revenue Service.

Furthermore, if in doubt, it is recommended to seek guidance from a tax professional to ensure the correct filing of the tax return.

Watch the video below to learn more! 

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.

GD (distributed generation) Real Estate income tax
Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.
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An answer

  1. Antonio Moutinho Filho said:
    26 March 2026 to 11: 28

    Rio, 26/3/26
    Good morning
    How can I use the nearly 10.000 kWh of distributed generation solar credit shown on my Light bill after 5 years of generation?
    Sell, donate, or ???
    What is the way to solve this?
    Thank you for the information and if possible, for your help.

    Antonio Moutinho Filho

    Reply

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