top of page

Italy's Relaunch Decree enables homeowners to install solar photovoltaic systems for free



Italy has been hit hard by COVID-19 and is attempting to jump-start its economy through the Relaunch Decree, a revitalization package of 55 billion euros ($60 billion) that Prime Minister Giuseppe Conte and his cabinet passed in May. The stimulus includes tax breaks for clean energy projects and renovations; Italian homeowners are offered free rooftop installations of solar photovoltaic (PV) systems through the Relaunch Decree. To help Italy recover from the coronavirus-induced recession, incentives — like tax credits for homeowners pivoting toward energy efficient home improvement projects — are offered. According to Ernst & Young’s Global Tax News, “Individuals can offset 110% of qualified building renovation and energy efficiency costs incurred between 1 July 2020 and 31 December 2021 against their tax liabilities in five equal installments (up to certain thresholds).” Related: First home solar pavement installed on a driveway PV Magazine explained that the bonus is “for building-renovation projects from 65% to 110% and a jump in support for PV installations and storage systems associated with such renovation projects, from 50% of costs to 110%.” Any solar photovoltaic installations for the next year-and-a-half will be subsidized. Only a few weeks ago, Green Tech Media warned that Italy’s subsidy-free solar sector had stalled due to the pandemic, placing many projects on hold. While the solar industry is no stranger to vicissitude cycles, the pandemic added unexpected variables. “For the sector, the Relaunch Decree is certainly a great opportunity for the spread of photovoltaics on the roofs of Italian homes,” said Paolo Rocco Viscontini, president of PV association Italia Solare. Italy’s investment incentives for solar should come as no surprise, since Statista describes Italy as “the leading country worldwide for electricity consumption covered by solar PV.” Since the early 2000s, Italy has been a strong proponent of solar installations. In 2017, it unveiled its National Energy Strategy — a 10-year plan to decarbonize, expand renewable energy and promote energy efficiency and environmental sustainability. As of early 2020, Italy is second only to Germany in the photovoltaic sector, with solar power as the country’s preferred renewable energy source. In 2019, Italy had a 69% increase in solar photovoltaic installations compared to 2018. That growth was deemed “the most substantial recorded in Italy” by PV Europe with a grand total of 56,590 new solar power system installations in 2019, of which 50,653 were residential. While COVID-19 dampened photovoltaic growth for Italy’s first quarter of 2020, many nonetheless hope that the Relaunch Decree’s incentives can support a swift restart of the solar PV sector. Tom Heggarty, principal solar analyst for global energy consultancy Wood Mackenzie, said, “Solar [projects are] pretty quick to develop and construct. So once we start to see restrictions lifted, the industry should, theoretically, be in a good place to bounce back quite quickly.” Via EY Global Tax News, PV Magazine, Green Tech Media, Statista and PV Europe

bottom of page