Italy has a new FiT

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

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 €8 billion of orders blocked and a claimed €20 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 (€580 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 €1,361 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.

According to Jeffries International, there are several positive aspects to the new FiT for the PV industry. As small-scale is classified as under 1MW and no cap placed on roof system installations the majority of the Italian market remains intact.

There will also not be a cap on ground systems <200kw. Jeffries International see this as a significant positive as the prior draft would have capped all ground based systems regardless of size.

Farmers are also expected to do well from the new FiT as 200kw systems are uncapped. With permitted systems now eligible for incentives without a cap up to Aug 31, Jeffries estimates this market is worth approximately 2GW in 2011.

However, the investment bank believes that the large-system cap lowers previously estimated installations negatively and that a priority ranking system for large systems is unclear.

The Conto Energia IV does have new provisions for connection to the net, which means that the net operator has 30 days to connect finished systems to the electricity grid, while late connections would result in compensation. 

Overall, Jeffries believes the new FiT system is more positive for the solar industry compared to its prior estimates.

9 December 2021
The Smart Energy Council is hosting Australia’s second Virtual Smart Energy Conference and Exhibition on Thursday, 9 December 2021. This event will show that the industry powers on despite COVID-19 and we are standing together undeterred in spirit. Bringing our global community together using the latest technology.
13 January 2022
Intersolar North America and Energy Storage North America “Come Together” for the first time in Long Beach, CA—connecting installers, developers, utilities, technology providers, policy makers, and key stakeholders from around the world to advance the clean energy future. With best-in-class conference programming, integrated exhibits and pavilions, and the live Solar Games installer competition, #isnaesna21 will showcase the industry trends, innovative solutions, and emerging talent transforming the solar, energy storage, and e-mobility markets. Register today to redeem our exclusive offer for PV Tech readers—free expo hall or 20% off full conference pass.
1 February 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.

Read Next

December 3, 2021
Norwegian module marketplace company Otovo has launched in Germany, with the company expecting 1,000 new customers over the next year
December 3, 2021
Solar investor and asset manager NextEnergy Capital Group (NEC) has secured backing from the UK Infrastructure Bank for a new fund that aims to raise £500 million (US$663 million) to invest in subsidy-free solar power plants in the UK.
December 3, 2021
Indian independent power producer (IPP) ReNew Power has signed an agreement with Indian engineering giant Larsen & Toubro (L&T) to develop green hydrogen facilities, becoming the latest PV developer to do so after a string of recent announcements
December 3, 2021
Koch Engineered Solutions (KES) LLC has acquired US engineering, procurement and construction (EPC) firm DEPCOM, which specialises in utility-scale solar PV projects, for an undisclosed amount
December 3, 2021
Heterojunction cell and module manufacturer Meyer Burger has reduced module output at one of its production plants in Germany as COVID-19 is causing above-average workforce absences due to illness and quarantine orders.
December 3, 2021
Tianjin Zhonghuan Semiconductor (TZS) has become the latest solar wafer manufacturer to cut prices, while also launching a new 218.2mm-size wafer.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal