Italy Solar Energy Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Italy Solar Energy Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Italian solar energy market is expected to register a CAGR of more than 7% during the forecast period of 2022-2027. The Italian solar market was relatively unaffected by the COVID-19 pandemic as the market witnessed growth during 2020. For instance, as per the International Energy Agency (IEA), despite the COVID‑19 pandemic, solar photovoltaic capacity additions in Italy in H1 2020 were higher than in the same period in 2019. Factors such as supportive government policies and efforts to meet power demand from renewable energy sources are expected to drive the market studied over the coming years. However, the high initial investments for installing solar panels and the continuing COVID-19 pandemic are expected to restrain the growth of solar energy.

· The installation of solar photovoltaic panels is expected to grow in comparison to other solar power harnessing technologies like Concentrated Solar Power (CSP) during the forecast period.

· Offshore areas for solar installation are expected to provide ample opportunities for market players in the near future.

· Upcoming projects and government policies will drive the market during the forecast period.

· Photovoltaics (PVs) are arrays of cells containing a solar photovoltaic material that converts radiation or energy from the sun into direct current electricity. They consist of various semiconductors, usually silicon, and highly conductive wire, to reduce any current loss, making them expensive. However, the operational cost is so low that costs are expected to further decline over the coming years.

· According to a report by SolarPower Europe, in Italy, solar PV cumulative capacity reached 21.340 MW in 2020. Also, the country plans to add another 6.3 GW by the end of 2024, which will drive the segment's growth over the coming years.

· In May 2020, the Italian government introduced a new 110% tax rebate for residential PV systems installed together with building energy efficiency modernizations as part of the COVID‑19 pandemic-related economic relief package, which is expected to support PV deployment further in the country.

· Moreover, due to a decrease in prices of residential photovoltaic systems from EUR 3.6 per watt in 2011 to EUR 1.33 per watt in 2020, the demand for PV systems has increased in Italian households, driving the solar market further.

· Thus, with ongoing developments and capacity additions, the solar PV segment is expected to dominate in the forecast period.

· The Italian government plans to increase the share of renewables to 55% of its power generation by 2030 and reach a solar capacity of 52 GW. If achieved, it will increase solar’s share in renewable energy significantly.

· Solar power installed capacity in Italy increased to 21.6 GW in 2020 from 20.8 GW in 2019. With upcoming projects, the solar power installed capacity is expected to grow significantly during the forecast period.

· In 2021, to speed up solar deployment, the Italian government announced a Simplification Decree that removes permit bottlenecks while national grid operator Terna will invest USD 21.5 billion over the next ten years to improve transmission links.

· In line with the ongoing project developments in solar panels, the market for solar panels is expected to grow significantly during the forecast period. For instance, in May 2020, Spanish utility-scale solar plants developer Powertis unveiled its plans to develop a 500 MW solar photovoltaic (PV) portfolio in Italy.

· There are several auctions expected in the period of 2020-2024 for different renewable projects. The government is trying to remove market risks by ensuring a unitary tariff, which is a for larger plants to have a reference price closer to the market price than under previous incentive plans.

· In line with the Italian government's future policies and new projects, the solar market is expected to record a significant rate over the coming years.

The Italian solar energy market is fragmented. Some of the major companies include Gruppo STG SRL, Sonnedix Power Holdings Ltd, EF Solare Italia SpA, SunPower Corporation, and Enel SpA, among others.

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