What is the difference between a ‘commercial activity’ and an ‘amateur activity’ in relation to my solar panel installation?

If the intention to make a profit is established, the activity is commercial: income from the sale of electricity and the green incentive are taxable; any capital grant reduces the purchase price; and all expenses, including depreciation, are tax-deductible.

If no profit motive is established, it is considered a hobby: income and state grants are not taxable, and operating costs are classified as non-deductible private expenses.

Updated on: 10/07/2026