Italy has a US$60 billion solar subsidy problem, says Barclays Capital

Facebook
Twitter
LinkedIn
Reddit
Email

Despite the confusion over the GSE’s PV installation figures for 2010, Barclays Capital PV analyst Vishal Shah said in an investors note that no matter what the actual installation figure will be for 2010, it is increasingly likely that the Italian government would have to pay for 6GW worth of subsidies at the 2010 FiT rate. This would mean that subsidy burden would cost Italy €44 billion over the next 20 years. With 4GW of applications pending grid connection, this would result in a US$60 billion incentive burden.

Shah noted that Germany’s subsidy burden is €25 billion, while Spain’s stands at €17 billion. Shah said in the report that they calculated the subsidy burden to Italian consumers would increase from €0.25 c/kWh in 2009 to €1.42 c/kWh in 2010, representing 6% of the electricity bill.

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

In Spain and more recently Germany, as the market for solar installations overheated and concerns over the impact increased electricity prices would have on consumers, governments have made significant cuts to the feed-in tariffs.

According to Shah, there is an increasing risk of a significant subsidy cut in Italy in order to control market growth from the second half of 2011.
 

Read Next

September 9, 2025
The US Solar Energy Industries Association (SEIA) has released a policy blueprint which it claims would “strengthen the reliability of America’s electric grid with solar and storage technologies.”
September 9, 2025
US solar tracker manufacturer Nextracker has acquired Origami Solar, a steel frame technology-focused company, for approximately US$53 million. 
September 9, 2025
China has advanced in the integration of AI and new energy, covering areas such as power forecasting, electricity markets, and O&M.
September 9, 2025
Leading solar industry professionals discussed the importance of US solar PV manufacturing at the RE+ trade show in Las Vegas, US.
September 9, 2025
Australia's National Electricity Market (NEM) broke records yesterday when renewables supplied 76.4% of total electricity demand, with solar power contributing nearly 60% of the record-breaking clean energy mix.
September 9, 2025
The US installed 17.92GW of new capacity in the first half of 2025, with quarterly declines in additions for utility-scale and residential solar.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines