[SMM Analysis] Italy plans to provide financial subsidies for photovoltaic module manufacturing

The European Commission has authorized Italy to use proceeds from its Recovery and Resilience Fund (RRF) to finance projects to produce equipment needed for the country to transition to a net-zero economy. Related equipment for the production of photovoltaic modules is part of the plan.

On February 10, 2021, the European Parliament approved the RRF, which will provide €672.5 billion in grants and loans to curb the impact of the COVID-19 pandemic. The funding will last for three years and EU governments can request up to 13% of pre-financing for their recovery and recovery plans.

State aid will be provided through direct grants, with a maximum of €150 million available to a single beneficiary. Disadvantaged regions and regions with per capita GDP below or equal to 75% of the EU average can provide up to €350 million in funding.

The Commission considers Italy's plan necessary to accelerate the green transition and boost economic development, saying it is in line with the goals set out in the Green Deal Industrial Plan (GDIP). The grant is available until December 31, 2025.

Italy's solar manufacturing plans are gradually growing, and with the EU issuing a green signal, more photovoltaic companies are planning to expand production capacity or find places to build photovoltaic module production capacity.

Italy aims to increase the share of renewable energy in its electricity consumption to 65% by 2030, according to the latest National Energy and Climate Plan (NECP). In 2023, Italy's newly installed photovoltaic capacity will be 5.23GW, and by the end of 2023, the country's total installed capacity will exceed 30GW. Newly installed photovoltaic capacity in Italy is expected to exceed 6 GW in 2024.