High levels of sunlight, high electricity prices and attractive subsidies: these favourable framework conditions characterise the photovoltaic market in Italy. The industry had been anxiously awaiting the new regulation on feed-in tariffs. The government in Rome has now adopted the revised funding instrument and the Conto Energia IV comes into force on 1 June, replacing its predecessor Conto Energia III.
Business Location Su?dtirol (BLS), South Tyrols agency for location, provides comprehensive advice and explains key details to companies investing in Italys solar electricity market.
The legal basis for the Conto Energia IV is the government decree of 5 May. The decision came after installed capacity in Italy in 2010 had almost reached its specified upper limit of 8,000 MW. The updated Conto Energia raises this cap and now provides for a new expansion target of 23,000 MW by the end of 2016.
Through the Conto Energia IV, Italys photovoltaic market continues to offer great investment opportunities. The tariff paid is still one of the most attractive in Europe, comments Petra Seppi, an expert in the sector and a network partner of BLS.
Highest funding rates for roof-top systems
The Conto Energia IV regulates the feed-in tariff up until 31 December 2016. During this period, the funding rates decline moderately, initially with a monthly degression followed by half-yearly degression as of 2013. For the period up to December 2012, the Conto Energia IV follows on from the rules in the preceding regulations: the level of funding depends on the size of the system as well as on whether the photovoltaic modules are installed on buildings or are ground-mounted.
The highest subsidies apply to small as well as roof-top systems. The
tariffs are paid for 20 years and remain constant during this time. System operators receive the tariff in addition to the revenue from the sale of the electricity. The present split into sale of electricity and feed-in tariff will not be lifted by a new tariff model until 2013. Here the updated Conto Energia offers the prospect
of a new standard tariff.
Energy-saving renovations a funding priority
The Conto Energia IV sets targeted funding priorities with a series of special
premiums. PV plant installed as part of comprehensive energy-saving building
renovation measures receive premiums of up to 30 per cent. The tariff increases
by five cents per kilowatt hour for roof-top installations that replace asbestos.
The Italian government is also increasing the subsidy rate by 10 percent if at least 60 per cent of the investment costs are attributable to plant components produced in Europe. Manufacturers in Germany could benefit from this provision in particular.
Business Location Su?dtirol as a partner for entry into the market
To date, the development of the solar industry in Italy has been closely linked with the Conto Energia. Coupled with the high levels of sunlight and high electricity prices compared with other EU countries, the funding instrument has led to a sharp rise in installed capacity in Italy within just a few years.
German companies are also benefiting from this market expansion. Many successfully enter the market by starting in South Tyrol as a business location. BLS offers investors comprehensive advice on the Italian feed-in tariffs under the Conto Energia IV, as for example, in the German-Italian Solar Energy Forum starting at 10 a.m. on 8 June as part of the Intersolar trade fair in Munich (see separate press release).
The business location agency can provide further tailored support services for companies setting up in South Tyrol on request.
