Italy sets rules for exit from Conto Energia PV incentive scheme, requires EU-made modules for repowering

Italy’s Ministry of Environment and Energy Security (Mase) has set out the rules under which photovoltaic plants supported by the Conto Energia scheme can opt for an early exit from incentives.

Italy introduced its first Conto Energia scheme in 2005, establishing feed-in tariffs for electricity generated by photovoltaic systems. The second Conto Energia followed in 2007, simplifying access and supporting a rapid expansion of installed PV capacity. The third scheme took effect in 2011 but was soon replaced by the fourth Conto Energia, introduced in May of the same year as deployment accelerated. A fifth and final Conto Energia was launched in 2012, with the overall incentive program ending in 2013 after reaching its statutory cost threshold.

Overall, the five Conto Energia schemes supported 550,074 PV plants totaling 17.62 GW.

The decree applies to plants with a capacity of more than 20 kW receiving fixed tariffs or premiums that are not linked to market prices under the first four Conto Energia schemes.

The voluntary exit mechanism will be available from Jan. 1, 2028, for up to 10 GW of total capacity. Participating operators will have to meet a number of requirements, including repowering their projects using European-made modules.

Operators that have opted for the extension of their incentive agreements under the so-called DL Bollette will be able to access the mechanism directly by submitting an expression of interest to the Gestore dei Servizi Energetici (GSE). Operators that did not opt for the extension will have to participate in a competitive procedure organized by the GSE, which must be conducted electronically by June 30, 2027, after submitting an expression of interest.

The capacity available under the competitive procedure will be equal to 10 GW minus the capacity admitted through direct access. In any case, the available capacity must be at least 5% lower than the total capacity for which operators have expressed an interest in exiting the incentive scheme.

Participants will submit bids offering a percentage reduction from a reference value established by the GSE. Bids will be ranked according to the expected benefit to the electricity system until the available capacity is exhausted. In the event of equal benefits, priority will be given to the operator that completed its application first.

To qualify for the early exit mechanism, operators must carry out a full repowering of their plants, with work starting no earlier than Jan. 1, 2028, and the repowered facilities entering operation by Dec. 31, 2030.

The repowering must deliver an increase in energy yield compared with the expected output over the remaining incentive period. The minimum increase is 30% for rooftop plants and ground-mounted systems located on agricultural land, and 100% for all other plants.

Only modules listed in the registers established under Article 12 of Decree-Law 181/2023 and manufactured in the European Union may be used for the repowering projects.

Electricity fed into the grid that is attributable to the plant’s residual capacity, excluding the additional output resulting from the repowering, will have to be sold under long-term contracts. Only the additional capacity resulting from the repowering will be eligible to participate in support mechanisms.

Within 30 days of the decree entering into force, the GSE will publish the implementing rules. Within the following 10 days, it will issue the notice for expressions of interest, which operators must submit within 30 days of the publication of the rules.

The implementing rules will define, among other things, application templates, procedural deadlines, contract types, administrative fees and the methodology for calculating the increase in capacity.