In August 2005 the long-awaited and much anticipated Italian feed-in tariff was launched.

Within only a few days more than 3 600 application had been submitted; 78 % of them – corresponding to 88 MW – were accepted for tariff-support. The rush of applications did not stop then; between October and December a further 7 500 applications were received corresponding to a total power of about 190 MW.

This enormous demand prompted a new decree in February 2006 which has increased the target capacity eligible for the feed-in tariff from 500 MW to 1 000 MW by 2015.

The preferential tariff applies to the total electric energy produced by the PV plant. The incentives, which are open to individuals, companies, condominia and public bodies, are fixed for a period of 20 years. The initial tariff ranges from 0,445 EUR/kWh to 0,490 EUR/kWh, dependent on the nominal capacity of the system. From 2007, the tariffs will be revised annually, reducing by 5 % per year, corrected for inflation.

For plants larger than 50 kW, the tariff is subject to a tender mechanism, with preference given to systems that require a lower tariff.

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