NEWS

Solar installations in Italy increased to 12.5GW in 2011 and subsidies may be cut again

Release time:

2022-01-10

On 20 October 2011, Valerio Natalizia, chairman of industry body GIFI, said that the total installed PV capacity in Italy is expected to increase to 12-12.5GW by the end of 2011, but the growth rate will slow next year. "So far, we have installed well over 11GW, and by the end of the year it could be between 12-12.5GW. Next year, the number of new installations will be smaller, about 2.5-3GW."

Since 2007, when the Italian government introduced a hefty feed-in tariff, the Italian market has become the second largest after Germany. In May, the government cut subsidies to ease the burden of electricity costs on consumers.

The Italian energy services agency GSE also said that the total installed photovoltaic system in Italy has exceeded 11GW, with about 288,000 solar plants in operation, and the total annual subsidy cost is about 4.9 billion euros.

Valerio Natalizia, who in September had expected Italy to add 3-3.5GW of new PV installations in 2012, lowered his estimate mainly because of restrictions on the amount of land required for installation projects and the introduction of a registration mechanism for large power plant projects.

The government has introduced measures to limit subsidies and introduce a registration mechanism for large photovoltaic projects, which it says will limit speculation in the solar market. Operators say the registration mechanism will only complicate project approval.

Valerio Natalizia and another industry official said the government planned more changes to subsidies for solar power, including a new draft law on economic development aimed at slowing the market further.

Claudio Andrea Gemme, president of the Italian Electricians Association ANIE, said that under the draft bill, subsidies paid to solar power producers in the sunless south of Italy would be the same as in the north, meaning that the feed-in tariff in southern Italy would be cut.

"It's not fair, the current subsidy regime has only been in place for a few months and the industry needs stability," Claudio Andrea Gemme said. He worries that the subsidy changes could lead to a loss of confidence among investors and operators in the Italian market, and that it would be difficult for banks to lend to solar projects.

Italy's feed-in tariff, which has just been cut, remains generous and has attracted global PV module makers such as Suntech, Trina and Yingli at home and First Solar and SunPower in the United States.

Valerio Natalizia said that the draft bill had not yet been approved by the government and did not contain any proposals for adjusting subsidy standards, nor did it have a timetable for its introduction. Italy's prime minister, Silvio Berlusconi, said on October 18th that there was not enough money to implement the development bill.