Italian cabinet decides not to set annual cap for photovoltaic market

As predicted by the industry, the 8 GW annual cap was not set in the solar energy policy signed by the Italian cabinet, but it does set a limit of 1MW for agricultural land projects. Under the guidance of the new policy, if any project wants to enjoy the current feed-in tariff policy, it must be networked before May 31st. According to a report released by the government, a corresponding on-grid tariff subsidy policy will be established for projects after May on April 30.

Barclays Investment Bank believes that this resolution "will increase the uncertainties in the second half of the 11th year and will make the actual situation worse than expected and will likely increase the financing risks of many existing projects." The investment company also expects that "this resolution will significantly reduce the Italian market's price in the second quarter until the expected price in the second half of the year is reset by the reduction of the on-grid tariff subsidies by about 30-50%."

In a letter notifying its contacts that the government has not set a market cap, EuPD Market Research stated: "The representatives from the GIFI of the industrial association, the representatives of the Ministry of Environment, and the representatives of the Ministry of Economy did not adjust the policy at today's seminar. A further agreement was reached. The timely intervention by the government was mainly due to the installation of the market and the relatively high prices of solar components in recent months."

“The current over-exposure of solar energy in Italy is due to a series of related deliberations conducted by the government in recent days.” EuPD also pointed out that “the representatives from the industry association GIFI, the Ministry of Environment and the Ministry of Economic Affairs The delegates only indicated that they would conduct further talks in April. Although the government departments proposed earlier this week that the resolution setting the comprehensive market cap had not been passed, this did not affect the reduction of the on-grid tariff subsidies in June this year. ."

“Allegedly, these changes will prevent an excessive burden on private and commercial power consumers.” EuPD said, “Of opposition to the ceiling for the market not only from market experts and analysts, but also the proposal has also been met. The opposition of legislators. Market intervention at this scale can only limit the market. Spain is the best precedent."

"Adjusting the financing is a very correct move," said Markus A, chief executive of market research consultancy in Bonn. W. Hoehner said that "the average price of a small roofing system in the Italian market is 4300 euros, and the peak price is 6,000 euros. This price is still higher than other markets in Europe such as Germany, Spain and France."

“The government must carefully consider the scope of future subsidy reductions,” Mr. Hoehner said. “Otherwise, it will not only affect domestic companies, but will also affect the international photovoltaic industry that has just recently had a promising sales market in Italy. ."