Jul 27 2009
An attractive feed-in tariff incentive and rapidly decreasing solar module prices have made Italy the most attractive PV market in the world. This year, Italy is set to become the world's second largest PV market after Germany, the undisputed leader.
GSE, the state-run Italian power management agency, expects that total installed PV power will reach 900 MW by the end of 2009. This represents 100% growth compared to 2008, with approximately 70,000 new-build PV installations in 2009. GSE expects the market to grow further to 1500 MW in 2010, resulting in a compound annual growth rate of 135% for the PV market in the period 2006-2010.
In 2008, total revenues approached 1.15 billion euros, an increase of 150% over 2007. The Italian feed-in tariff for solar energy produced is €0.372 per kilowatt hour for roof projects of between three and 20 kiloWatts. In addition, solar energy produced can be sold to the utility at €0.08/kWh. Total remuneration is comparable to what was available in Spain during the market boom in 2008. In Italy, however, solar module prices are almost half the level they were last year. These favorable conditions have attracted many new companies, and led to a fragmented market with more than 600 players. Unlike the ground-mounted large power plants developed in Spain in 2008, most PV installations in Italy are roof-mounted projects which are located in the northern part of Italy. This is because of regulatory and grid connection issues in the sunnier south of Italy, where developers have scheduled larger power plants.
The market cap of 1200 MW cumulative installed PV power is expected to be reached by late 2009 or early 2010. This will leave 14 months for projects to be completed. What will happen after this remains an unknown. Plans have been presented to extend market stimulation with lower feed-in tariffs. Some experts, however, believe that new incentives in southern Italy will no longer be necessary in 2011, as grid-parity could be reached due to high grid electricity prices.
At the third Solarplaza Global PV Demand Conference on 22 September 2009 in Hamburg, a representative and market expert from the Italian PV Industry Association will discuss the current market situation, and present forecasts for the booming Italian market. More information is available at www.globaldemandconference.com.