Italy rebalances PV market

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The Italian government has heeded the call of renewable energy trade bodies by cancelling a controversial measure introduced at the end of June by the Decreto Crescita package of economic growth policies.

An article contained in the Budget Law 2020 published in the official government journal has halted the unpopular provisions, which was intended to drive more sustainable development. The measure enabled homeowners who qualified for a 50% income tax (Irpef) rebate related to sustainable house building or renovation to transfer the award to the installers or suppliers of rooftop PV systems which qualified for the rebate.

However, the fact the tax rebate could take up to ten years to materialize meant only big corporate installers and suppliers with significant financial resources could afford to take advantage, to the detriment of small and medium sized enterprizes.

Market imbalance

“Common sense prevailed,” said Alberto Pinori, president of the ANIE Rinnovabili renewable energy section of the General Confederation of Italian Industry, after the controversial measure was revoked. “We thank the promoters of the amendment proposal.” Pinori told pv magazine the transfer of credit generated conflict in the PV and energy storage supply chain without delivering market growth. “If the government wants to use this tool in the future, it would be appropriate to talk in advance together with the whole sector,” he added.

Paolo Rocco Viscontini, president of PV association Italia Solare, said the credit transfer mechanism had created a clear market imbalance and the association had filed a complaint with the AGCM Italian antitrust authority as a result.

The Irpef deduction entitles PV system purchasers to deduct up to half the cost from their taxable income, up to a maximum of €96,000.

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