Italy Increases Incentives for EU-Made PV Modules [SMM Analysis]

The Italian government has enhanced incentives for PV projects using EU-manufactured PV modules under the "Transizione 5.0 Tax Credit Program." This program aims to promote the transition of industrial processes to renewable energy.

According to the new regulations, projects using EU-manufactured modules can receive financial credits of up to 35% of the PV module cost, allocated through tenders. For batteries with an efficiency of 23.5%, the tax credit base has been increased from 120% to 140%; for bifacial silicon heterojunction or tandem cell modules with an efficiency of 24% or higher, the credit base has been raised from 140% to 150%. Currently, PV modules with an efficiency of at least 21.5% are eligible for a 130% financial incentive.

The new policy has simplified investment tiers, streamlining them into two levels: up to 10 million euros (approximately $10.2 million) and between 10 million and 50 million euros. However, the new regulations have eliminated the previous additional tax credits of 20% to 25% for projects using EU-manufactured modules that could reduce energy consumption by 6% to 15%.

Additionally, the tax credits can be combined with investment tax credits for Italy's southern economic zones and simplified logistics zones, as well as other EU incentives, provided these incentives do not overlap in cost coverage.