Italy

Country/Tariff Roof-Top Ground-Based BIPV Term
Italy
Plants coming on line in the first 6 months of new decree: inclusive tariff

1-3kW = $0.2715

3-20kW = $0.2553

20-200kW = $0.227

200-1MW = $0.1824

1MW-5MW = $0.1621

>5MW = $0.1527

1-3kW = $0.2715

3-20kW = $0.2553

20-200kW = $0.227

200-1MW = $0.1824

1MW-5MW = $0.1621

>5MW = $0.1527

1-3kW = $281

3-20kW = $264

20-200kW = $236

200-1MW = $191

1MW-5MW = $170

>5MW = $160

Plants coming on line in the first 6 months of new decree: energy consumption tariff

1-3kW = $160

3-20kW = $144

20-200kW = $116

200-1MW = $71

1MW-5MW = $51

>5MW = $1

1-3kW = $160

3-20kW = $144

20-200kW = $116

200-1MW = $71

1MW-5MW = $51

>5MW = $41

1-3kW = $170

3-20kW = $229

20-200kW = $125

200-1MW = $81

1MW-5MW = $59

>5MW = $50

Update: March 2013

In line with Italy’s new national energy strategy, the Italian Revenue Agency will introduce tax breaks for off grid PV systems without access to the country’s feed-in tariff.

PV systems installed with a maximum budget of €48,000 from 1 July 2013, will have access to a fiscal break of 50%. This includes systems under the net metering scheme. PV systems installed between 26 and 30 June 2013 with a maximum budget of €96,000 will have access to a tax break of 36%.
Gifi said it welcomed the decision of the Italian Revenue Agency.

Update: March 2013

The Italian Ministry of Industry and Economy has published the final version of the country’s new national energy strategy to support PV without incentives. The document says that even without incentives, 1GW of solar PV will be added each year in Italy.

Update: January 2013

The Italian government announced on 7 January 2013 its net metering scheme will be limited to PV systems no greater than 200kW from 1 January 2013. Net metering is used as an alternative to the feed-in tariff.

Earlier, in November 2012, Italian solar manufacturer association Comitato Industrie Fotovoltaiche Italiane sent a statement to the government warning against the detrimental effects of Conto Energia V, which severely scaled back the support available for renewables in Italy.

Update: October 2012

A study from Frost & Sullivan, on 25 October 2012 has estimated that diminishing government subsidies means a decrease up to €6.57 billion (US$8.85billion) in overall revenues in the European PV solar market by 2015.

Italy has made cuts to its feed-in tariffs and have to replace its FiTs with other forms of incentive schemes.

The Italian Ministry of Economy and Industry has opened a public consultation on its recently approved new National Energy Strategy,. However, it is clear the Government’s intentions to stop PV subsidies completely when the Conto Energia V programme hits its cap. For instance, the Italian government allocated €242 million (US$326) out of the €6.7 billion (US$9 billion) budget to the incentive programme

Update: July 2012

The Gestore dei Servici Energetici (GSE) has notified the Autorità per l‘energia elettrica e il gas (AEEG) that the Italian solar PV industry has reached the US$8.1 billion benchmark. This equates to 14,300MW of installed capacity, equivalent to over 400 thousand PV systems annually.

The new Bill has allocated US$675 million annuallyr to renewables with US$270 set aside for PV. Conto Energia V is favourable to roof-top arrays, especially those replacing asbestos roofs and contain material produced in Europe.

The revised Italian feed-in tariff programme Conto Energia V has made the registration of all PV systems compulsory. EuPD Research claims this will induce an artificial limitation to the market as well as incur a supplementary cost of US$3.9/kWh.

IMS Research has revealed an additional annual budget of US$923m (€700m) and is due to end when the total annual cost reached US$ 8.8 billion (€6.7 billion).

Update: June 2012

European Union energy commissioner Günter Oettinger reportedly sent a sternly-worded letter to the Italian government criticizing its new Energy Bill, lifting the spirits of the Italian solar industry. According to Il Mundo, the letter, obtained by TMNews, expressed its concern that the Conto Energia V has the aptitude to “make it difficult, if not impossible, for independent manufacturers to gain any access to funding.”

Update: April 2012

The Italian Ministry of Economic Development and Regional affairs has released details of the final draft of its Conto Energia V. It introduces a six-month register for PV plants over 12kW and two new taxes.

Energy agency Gestore dei Servizi Energetici SpA (GSE) would charge PV installation owners between US$2.6 and US$6.7 kW, depending on its size upon registration. The second tax requires imminent and current owners to pay $0.0014 per kWh produced.

Update: April 2012

A draft of Conto Energia V has now been submitted to the state region conference and the Italian Authority for Gas and Energy. The opinion of these parties is compulsory but not binding. The new subsidy will take effect from either July 1, or 30 days after the US$8.1 billion cap from Conto Energia IV has been reached.

From a market loss and spot price perspective, larger ground systems will be the biggest losers in Conto Energia V, but favourable towards small rooftop systems up to 10kW, uncapped and with no restrictions. It is important to note that the vast majority of systems in Germany are small installations. The report also states that this will encourage self-consumption, with PPAs becoming the norm.

The fifth solar law allows for an additional US$675million over 2.5 years, equating to US$243 million per year of additional subsidy of which US$27 million is for building integrated systems (BIPV).

Update: March 2012

Ministers have announced the Quinto Conto Energia will come into force in July 2012.

Update: November 2011

Consultations and deliberations are now over as the Italian Council of Ministers signed on a new Conto Energia IV, effective on June 1, 2011. Since a review was announced the Italian market has effectively been frozen, especially for commercial and utility-scale projects, causing the PV supply chain to balloon with module inventory some market researchers have put at between 2 - 3GW. The situation was exacerbated by the slow start in PV installations in Germany this year.

In a recent presentation by GIFI (Gruppo Imprese Fotovoltaiche Italiane) trade association Board member, Averaldo Farri at the Photon Conference in Berlin, delays in creating a new FiT had put 10,000 jobs at risk with US$10.7 billion of orders blocked and a claimed US$27 billion of PV contracts on hold.

Key changes incorporated into the Conto Energia IV include a monthly degression of the tariff system and a funding cap for large systems. Interestingly, the new Conto Energia provides a 5% tariff bonus to system operators should 60% of the investment cost (modules and inverters), rather than installations costs be sourced from companies making such products actually in the EU. Importantly, existing permitted projects under previous tariff would be allowed to continue through August 31, overlapping with the new FiT.

Fears had been circulating that a total cap on installations would be imposed but the funding cap enables continued expansion and support for PV in Italy. According to the new rules there has been a cap (US$783 million) imposed for large systems through 2012, which according to EuPD Research would enable an installed capacity of 2.69GW, based on current prices.

Further funding from 2013 to 2016 has been limited to US$1,838 billion, which according to EuPD Research would allow for 9.77GW of installed capacity under current pricing conditions.

A half-year degression of tariffs will take place from 2012, but in 2013 an increase of between 5 and 10 cents is planned.

However, all other forms of funding such as tax breaks and investment subsidies are to be abolished. Funding is then to be adjusted on a half year basis as of the second half of 2013. Degression will rise to the same extent as installed capacity rose in the period previously under review.

2007

Back in 2007 the Italian Ministry for Industry passed a law for a new FiT for PV installations that guarantees a feed-in tariff for installations larger than 1kW. This gives the owner the current PV rate that can be seen in the table above.

According to the new Conto Energia III, Italy will begin reducing its funding for solar electricity in three phases starting from 2011. The cuts come in line with the current market conditions, which are forcing countries all over Europe to follow suit.

Under the new legislation, feed-in tariffs for solar electricity generated by open-space systems with a capacity up to 5MW are to be cut by 9.3% on average during the first four months of 2011, while incentives for solar projects with a capacity of 5MW and more will be decreased by 14.2%.

The cuts for rooftop solar systems are expected to be between 4.75% and 13.28%, depending on the size of the system. All tariffs are then to be decreased every four months during 2011.

EuPD summarizes the main points of the new Conto Energia III:
• In future a distinction is only to be made between two types of solar systems namely 'rooftop' and 'other systems';
• The tariffs for small solar rooftop ranging from 1 to 3kW will be US$0.5431/kWh, and US$0.4499/kWh for solar rooftop projects over 5MW. The aforementioned are valid for the first four months of 2011;
• Systems not installed on a building are classified under the term 'other systems'. The smallest of which will be entitled to US$0.4891/kWh and the largest US$0.4012/kWh during the first four month of 2011;
• The revisions applicable for BIPV systems are quite moderate and will be determined once for the whole year. Of greater relevance here is the new classification of sizes. Systems between 1 and 3kW are now to be grouped with the next category which is systems of up to 20kW;
• A further annual degression of 6% is intended for all non-integrated solar projects for the years 2012 and 2013. BIPV systems are to be subject to a degression rate of only 2%; and
• The magnitude of the market will initially be limited to 3GW for non-integrated solar and 200MW for BIPV. Experience has shown this to be sufficient. Similar to the Conto Energia II, a 14 month transition phase has also been granted in which funding will continue even after the maximum market volume has been reached.

The research company continues to say that by capping capacity at 3GW (+200MW BIPV) and guaranteeing tariffs for an initial period of two years (2012 and 2013) sufficient scope for the controlled further development of the solar market has been provided.

Looking ahead, Italy has put in place mandatory targets to reach in terms of renewable energy sources; the main target set is a 17% share of RES on the final consumption of energy in 2020. In terms of electricity the target set is for a 25% share of RES on gross electricity consumption by 2010.

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