Italian Government considers solar subsidy cap

Facebook
Twitter
LinkedIn
Reddit
Email

The Italian Government is considering introducing an installed capacity cap for solar subsidies as part of its new renewable energy legislation, reports Reuters. If confirmed, this latest twist in the subsidy saga will be a major blow to the industry and comes just six weeks after reports circulated that the government had dismissed plans to introduce an industry-wide 8GW cap.

“We have spoken to the [Industry] ministry and the feeling is it might introduce a cap on installed capacity, though the decree has not been finalised,” a source at one of Italy's energy associations said.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The mixed messages about the government’s stance towards solar sent out by such reports are likely to create further uncertainty among investors and undermine Italy’s rapidly-expanding PV industry. Reuters also revealed that, despite reports to contrary, the much-anticipated bill, which will come into force on June 1, is unlikely to be signed off until at least next week.

Before being passed, the decree needs to not only be ratified by the Industry and Environment ministries but also be given the green light by a committee of representatives from regional governments and industry bodies; the committee is due to meet on April 20.

Further clues to the outcome of the decree emerged on Sunday, when Italian newspaper La Repubblica reported that the latest version of the draft decree would include a cap on installed capacity of 1.55-1.8GW for 2011 and up to 2.8GW in 2012. The article also claimed that solar power generation in 2011 would be cut by 25% immediately with a further 8% cut in 2012.

Read Next

October 8, 2025
The NSW Independent Planning Commission has granted planning approval for Potentia Energy's 500MW Tallawang solar-plus-storage project.
October 8, 2025
US solar module prices jumped in Q3 2025 as developers scrambled to meet the 2 September 2025 safe harbour deadline for Investment Tax Credit (ITC) qualification, according to supply chain platform Anza.
October 8, 2025
Despite policy headwinds on the federal level, there is optimism for the future of the US solar and storage sector.
Premium
October 8, 2025
PV Talk: Smart Energy Council's Nigel Morris reflects on how Australia has become a global testbed for distributed solar and storage innovation.
October 8, 2025
Officials from Norway and Egypt have agreed provisional terms for the financing of the Dandara solar park in Egypt, which is being built and operated by Norwegian IPP Scatec.
October 8, 2025
University of Sydney scientists have created the largest and most efficient triple-junction perovskite-perovskite-silicon solar cell on record.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK