Italy to cut solar power incentives in 2011-2013

According to Reuters, following are key points of the decree, which needs a formal approval after a key state body backed it last Thursday:

  • In 2011, cuts in the feed-in tariff (FIT) which guarantees operators steady returns for every kilowatt hour of produced power for 20 years will be spread over three four-months periods.
  • FITs will be slashed by about 30 percent for big photovoltaics (PV) installations with capacity of more than five megawatts (MW), while incentives for smaller PV installations will be gradually cut by up to about 20 percent next year.
  • The FIT will be cut by six percent a year in 2012 and 2013.
  • A 3,000 MW limit is put on the new conventional PV capacity to be covered by incentives; on top of that, 200 MW of concentrated PV capacity and 300 MW of other innovative PV technology, previously not covered by incentives, will get support.
  • A target of 8,000 MW is set for PV capacity.