Decrees issued by the Italian Ministry of Economic Development in July 2005 and in February 2006 introduced a feed-in premium scheme for solar PV generation through which premiums ranging from EUR 0.445/kWh to EUR 0.490/kWh were granted.
The subsequent Ministerial Decree of February 19th, 2007 revised the previous feed-in scheme. It was meant for photovoltaic plants connected to the grid with a nominal capacity higher than 1 kWp realized by natural and legal persons, condominiums and public bodies. The decree provided a set of tariffs, valid for a period of 20 years, with a bonus in case of high degree of PV integration in the buildings.
Three types of systems were considered: not integrated, partially integrated and fully integrated. For 2010 the premiums ranged from a minimum of EUR 0.346/kWh (for not integrated plants with P>20 kW) to a maximum of EUR 0.471/kWh (for fully integrated plants with plants a capacity 1=P=3).
A tariff bonus of 5% was provided to self-producers, public schools and public hospitals, installations integrated to building substituting asbestos roofs, municipalities with less than 5 000 inhabitants. Plants with a capacity lower than 20 kWp could further benefit from on the on-spot trading service. Furthermore, this feed-in premium scheme promoted energy efficiency measures in buildings providing an additional bonus in case energy efficiency interventions in the buildings were implemented; on the basis of the energy saving level achieved, it was possible to obtain a maximum increase of the 30% of the base tariff. Producers got, in addition to the premium, the price of the electricity sold either on the market or through bilateral contracts. The feed-in premium scheme for PV plants was again revised by the Ministerial Decree of 6 August 2010. It incentivizes PV plants commissioned after December 31st, 2010, connected to the grid and with a nominal capacity higher than 1 kWp. Natural and legal persons, owners of housing units and/or buildings and public bodies could apply the support scheme. The 2010 decree provided a set of tariffs, valid for a period of 20 years, granted to the following power plants: - Installations on buildings, other PV plants, integrated PV plants with innovative characteristics (i.e. plants that use special components and modules, developed specifically to replace architectural elements); concentrating photovoltaic system; photovoltaic plants with technological innovation (i.e. the one that uses modules and components which are characterized by significant technological innovations). The decree also provides, in addition to a national target for PV power installed by 2020 of 8, 000MW, a power limit for each power plant category that can be incentivized: - 3, 000 MW for photovoltaic plants; - 300 MW for Photovoltaic plants which are architecturally integrated with innovative characteristics; - 200 MW Concentrating photovoltaic system. The provisions set by this last ministerial decree applied to PV plants commissioned until 31.5.2011 as according to the provisions of the Legislative decree No.28/2011. The Ministerial Decree of May 5th, 2011 sets out provisions for promoting PV plants with a capacity = 1 kW and commissioned between June 1st, 2011 and December 31st, 2016. It also establishes a 23,000 MW cap for the national capacity installed which corresponds to an indicative cumulative annual cost of 6-7 billions of euros. Once achieved one of these minimum values set either for the national capacity cap or for the cumulative annual cost, a further Ministerial Decree will be issued to revise the PV support scheme. The decree establishes a set of tariffs differentiated by capacity and category of PV plants, distinguishing between PV on building and "other" PV plants. It also provides specific premiums to incentivize the use of photovoltaic modules that use non-conventional and special components, developed specifically to complement architectural elements and replace the buildings, in PV plants with a capacity = 1 kW and = 5 MW. May apply to such tariffs natural and legal persons, public entities and owners of houses and/or buildings. Furthermore, the Ministerial Decree introduces a feed-in premium scheme to incentivize Concentrating PV systems. Only legal persons and public entities may apply to such specific tariffs. All the tariffs set by the ministerial decree are granted to electricity produced as a bonus on top of the electricity selling price. As of 1.1.2013, the tariffs will be granted to the electricity injected into the grid modifying the previous feed-in premium scheme in a feed-in tariff scheme. However, specific tariffs will also be provided for the electricity consumed on-site.