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Home  > Research Focus  >  Europe Renewable Power  >  Italy’s New Scheme Pushes PV Out of Incentive Nest

Italy’s New Scheme Pushes PV Out of Incentive Nest

July 12, 2012

On 6 July 2012, Italy published the Conto Energia V, further limiting the incentives available for solar PV. The new law is effective 45 days after total annual incentive payments for PV reaches €6 billion (currently at €5.9 billion for 14 GW of installed capacity). The decree allocates a final €700 million of new annual incentives, available in the form of feed-in tariffs (FITs) or self-consumption premiums. Thirty days after the cap is reached, the scheme ends, meaning that all PV projects will have to compete without incentives. Key trends in this On Point include:

  • Italian PV market braces for volatile installation activity as incentives phase-out.
  • PV players size up small-scale potential.
  • Vibrant secondary market for savvy investors.

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