After nearly a decade of stagnation, Italyssolarphotovoltaicmarket is finally showing signs of revival. In 2022, the country added 2.4GW of new capacity, a figure unimaginable in the first decade of the 21st century. In 2023, this number is expected to double again.

Revival of Italys Solar PV Market
According to data from Paolo Viscontini, President of the Italian Solar Industry Association, Italys installed capacity reached 2.3GW in the first half of 2023, approaching the total for the entire year of 2022. He predicts this figure may reach 4-5GW by year-end, depending on some ongoing large-scale projects.

Looking back, we must recall 2011 when Italy added nearly 10GW of solar capacity, becoming Europes PV powerhouse.

Growth in Residential Solar Projects
In the first half of 2023, nearly 47% of Italys new electricity came from residential projects, largely due to the Superbonus scheme. This program offered a 110% tax credit for solar panel installations and battery storage in the residential market. Viscontini noted that the scheme ended in February but created conditions for residential solar and battery installations.

Although the Superbonus scheme has ended, residential solar remains the main driver of Italys solar PV market. In the first half of 2023, this segment added 1.1GW of new capacity, compared to 1GW for the entire year of 2022.

Growth in Commercial, Industrial, and Utility-Scale Solar Projects
Italys residential and commercial solar markets are concentrated in the northern regions, which are densely populated and industrialized. In the first half of this year, Lombardy led with 429MW of solar capacity, followed by Veneto and Emilia-Romagna.

However, the south is dominated by large-scale ground-mounted projects. Viscontini stated that low electricity prices and insufficient demand in the south make it difficult for large projects to secure higher PPA prices. But with more large-scale projects under construction and more permits expected, the utility-scale market is projected to grow this year.

Future of Agrivoltaic Projects
Last year, the Italian government launched a €1.5 billion program to incentivize agrivoltaic project development. Viscontini believes that despite new regulations potentially increasing investment costs, future growth in agrivoltaics is foreseeable.