Italy

In 2023, the PNIEC was revised to enhance the targets for 2030, aligning with the new objectives set forth by the Fit for 55% initiative and the REPowerEU strategy, which allocates 39% of the available funds (as opposed to the original 37.5%) to support climate-related goals. The primary objective for 2030 is to achieve a 30% share of renewable energy sources (RES) in gross final energy consumption, necessitating the installation of new photovoltaic (PV) systems to attain a cumulative capacity of 80 GW and an annual production of 100 TWh. While the trajectory of PV installations appears to be progressing in accordance with the required advancements in photovoltaic deployment, challenges persist in securing the necessary permits for installation, despite the costs being competitive enough to enable market parity for PV plant installations.

In 2024 in Italy has been added 6.79 GW of PV capacity, reaching 37.1 GW of cumulative capacity (+29% compared to 2023) (see Figure 5).

a) Economic support

• The tax relief mechanism for the installation of residential systems (up to 200 kWdc) reimbursing 50% of the photovoltaic installation costs up to a maximum cost of 96,000.
• A feed-in tariff mechanism, provided by Ministerial Decree, is in place for supporting less “mature” RES (biomass, offshore winds and so on).
• A premium tariff for shared and self-consumed energy in the Renewable Energy Communities (CER), thanks to the recent decree that increased the single plant power limit to 1 MW and enlarged perimeter to primary electric station.
• A PNRR investment promoting advanced Agri PV (with certain requirements in terms of height from ground and monitoring systems) developed by agricultural companies (or temporary associations between investor and agricultural companies), composed of an incentive tariff granted for 20 years and capital contributions up to 40% of the investment costs (competitive auctions are foreseen)
• PNRR investment of 2,5 billion euro for industrial transformation, development of strategic supply chains in the transition towards a zero-emission economy (solar photovoltaic, wind, batteries, heat pumps, electrolysers and technologies for the capture, storage and use of carbon dioxide), energy efficiency and sustainability of production processes.
• A feed-in tariff mechanism, provided by Ministerial Decree, has been defined for supporting “mature” RES (PV plants, on shore wind and so on), adopted and entered into force in early 2025.

b) Structural reforms for an easier market penetration.

• Simplification and rationalisation of environmental regulations concerning permitting procedures have been enacted through a new regulation adopted in late 2024 (TU FER), which aims to streamline and expedite the authorization processes for renewable energy facilities.
• The law has established fast-track authorization procedures for sites designated as suitable special areas for renewable energy systems (RES), including but not limited to abandoned industrial zones, degraded and marginal lands, and former quarries and mines. The criteria for identifying regional “Suitable Areas” (“Aree Idonee”) have been delineated in a Ministerial Decree, which is currently under judicial review, and the respective Regions are in the process of implementing the necessary regulations. Further clarity is anticipated upon the resolution of the ongoing legal proceedings concerning the Ministerial Decree.

These efforts are also aimed at providing new competitive growth opportunities for the national industry within this sector, while simultaneously enhancing the benefits for end-users of the electricity system, both in economic terms (through reductions in electricity bills) and in terms of environmental sustainability.

It is therefore deemed a priority that research activities within the photovoltaic sector focus on enhancing the generation efficiency of photovoltaic modules and minimizing the spatial requirements for the installation of photovoltaic systems, while maintaining equivalent installed capacity. Such initiatives are expected to yield short- to medium-term effects.

A key priority associated with renewable energy sources (RES), particularly photovoltaics, is to foster the development of competitive supply chains within Italy. This initiative aims to diminish reliance on imported technologies and to bolster research and development in the most innovative domains, including photovoltaics, electrolysers, and batteries.

In this context, the Research Fund for the Italian Electrical System (RdS), financed by the Ministry of the Environment and Energy Security (MASE) and the PNRR, provides substantial support for research, development, and demonstration activities pertaining to new photovoltaic technologies, in which various research institutes and photovoltaic operators are actively engaged.

Among them, ENEA is focused on high efficiency solar cells based on perovskite/c-Si tandem structure, on the development of module ecodesign, on the advancement PV systems digitalisation and on original conceptualisation and promotion, of the “Sustainable Agrivoltaics”, also through the realisation of demonstrators.

Furthermore, RSE, a research company on the energy system, is carrying out activities on 1) multi-junction PV cells, 2) studies on thin film deposition on Si for tandem cells, 3) advanced PV plant O&M strategies to contribute to their optimal production (through anomaly detection and fault recognition techniques, also making use of a specially developed public fault-data-repository) and 4) Life Cycle Assessment (LCA) of most promising innovative PV technologies. Other major research organisations are: CNR, a public research institution, active in the evaluation of innovative low-cost processes for thin film on SI cells and EURAC Research, a private research organisation, working on the improvement of PV plant performance and reliability and on BIPV (Building Integrated Photovoltaics). Additional contributions are supplied by numerous university labs among which the CHOSE Centre of the University of Rome Tor Vergata, the University of Milano Bicocca and the University of Turin and by PV operators, covering the entire PV value chain (mainly PV cells and modules, inverters and sun tracking systems).

It should be also mentioned the network ReteIFV “Italian Network for Research, Development and Innovation in Photovoltaics”, with the aim of sharing initiatives of photovoltaic projects and research infrastructures throughout the country and which sees an active collaboration of the research institutes mentioned above, other research institutes and numerous manufacturers of PV components and plants.

The trend of photovoltaic (PV) installations in Italy is on track to meet the national decarbonization goals. Promising new applications include agrivoltaics, energy communities, and floating photovoltaics. However, challenges remain, particularly in the permitting process for PV installations. Streamlining these procedures is essential to fully harness Italy’s renewable energy potential and support the growth of solar projects. Collaboration among stakeholders will be key to overcoming these obstacles.

In 2024, according to data provided by TERNA and RSE, the total increase in renewable capacity in 2024 amounted to 7 480 MW, exceeding the 2023 figure by 1 685 MW (+29%). As of December 2024, Italy’s installed renewable capacity totalled 76.6 GW, including 37.1 GW of solar and 13 GW of wind power. The 2021-2024 installation target set by the DM Aree Idonee (June 21, 2024) was surpassed by 1 609 MW. From January to December 2024, nominal storage capacity increased by 2 113 MW. Italy now has approximately 730 000 storage installations, corresponding to around 12 942 MWh of capacity and 5 565 MW of nominal power, of which 1 065 MW is utility-scale. On the supply side, 2024 saw significant growth in renewable generation (+13.4%) and a slight decline in net foreign exchange (-0.5%), driven by a sharp increase in exports (+47.9% compared to 2023) and a modest rise in imports (+2.4%). In December, for the first time, Italian electricity exports surpassed 4 000 MW during certain hours, highlighting the critical role of interconnections in importing cost-effective energy and, increasingly in the future, in providing a flexible mechanism to share generation and storage resources in response to the growing variability of renewable generation More specifically, Italy’s electricity demand in 2024 was met 83.7% by domestic production and 16.3% by net imports. domestic net production (264 billion kWh) increased by 2.7% compared to 2023.

On the fronts of economic support and structural reforms the government has made further efforts to promote the photovoltaic objectives indicated above.

The region with the greatest increase is Lazio with +1 256 MW, followed by Lombardy (+766 MW) and Sicily (+505 MW).

Among the initiatives of PV producers, FuturaSun (Photo 20) FENICE project has been funded through Innovation Fund. It will introduce the production of PV modules based on advanced technologies liken-type and xBC (Back Contact) The new factory will produce over 7.6 GW of high-efficiency PV modules within its first 10 years of operation.

Agrivoltaics is generating significant interest among agricultural and photovoltaic operators, with a considerable amount of GW currently in the permitting process. These systems enable the dual use of land for both energy production and agriculture, addressing concerns about land use and landscape preservation. The Italian Association for Sustainable Agrivoltaics (AIAS), established in November 2022 and chaired by ENEA, has grown to over 100 members from various sectors, including energy, technology, agriculture and research. To facilitate the permitting process and distinguish agrivoltaics from traditional ground-mounted PV systems, several guidelines and technical specifications have been published at both national and regional levels. Key documents include:

• UNI/PdR 148:2023: Guidelines for integrating agricultural activities with photovoltaic systems.
• CEI PAS 82-93 ed. 2 (2024-01): a Public Available Specification on agrivoltaic systems developed by the Italian Electrotechnical Committee, involving input from experts in both fields.
• Ministerial Decree on Agrivoltaics (February 24): this decree defines “advanced agrivoltaics” and includes an incentive tariff for 20 years, along with capital contributions of up to 40% of investment costs, with competitive auctions planned.

This work has been financed by the Research Fund for the Italian Electrical System under the Three-Year Research Plan 2022-2024, funded by the Ministry of the Environment and Energy Security (MASE).