Italian photovoltaics: origins, private investment and value for the country
This section reconstructs the general context in which Italy’s photovoltaic sector was born and developed: climate commitments, the Conto Energia scheme, the role of private investors, GSE data on installed plants and the energy, environmental and economic benefits generated by solar production.
Sources: Terna for capacity and generation; ISPRA for the emission factor. Updated 13 August 2026; Terna has not yet published the official monthly figure for July 2026.
Why Italy had to promote solar power
Italian photovoltaics did not arise as a private rent, but as an industrial and regulatory response to a public need: reducing emissions, increasing renewable energy, strengthening energy security and moving towards a system less dependent on imported fossil fuels.
The Kyoto Protocol and subsequent European policies laid the foundations for a decarbonisation path requiring rapid and widespread investments, including private capital. In Italy, this path was implemented also through the Conto Energia scheme.
The growth of photovoltaics would not have been possible without thousands of private operators who financed, developed, built, maintained and operated PV plants.
The principle to be reconstructed
The cost of incentives should be read together with the public value generated by the plants: electricity produced without fossil fuel, lower emissions, reduced exposure to gas imports, industrial development and contribution to the electricity system during solar production hours.
From Kyoto to Conto Energia
1997-2005: international commitments
The Kyoto Protocol introduced emission reduction obligations for industrialised countries. Italy ratified it with Law No. 120/2002 and began defining national policies to reduce greenhouse gas emissions.
2005-2012: Conto Energia
The Conto Energia decrees created the incentive framework that allowed the birth and development of Italy’s photovoltaic sector.
2013-2015: end of Conto Energia
After the end of direct incentives for new Conto Energia plants, growth slowed; existing plants remained essential productive assets for the national electricity system.
2014 onwards: reshaping and later measures
From the so-called “spalma-incentivi” to more recent compensation measures, the sector has faced regulatory interventions that affected the original economic balance of investments.
Conto Energia decrees
| Scheme | Main legal reference | Role |
|---|---|---|
| I Conto Energia | Ministerial Decrees 28 July 2005 and 6 February 2006 | Initial launch of PV incentives. |
| II Conto Energia | Ministerial Decree 19 February 2007 | Major initial expansion and entry of private operators. |
| III Conto Energia | Ministerial Decree 6 August 2010 | Market consolidation and tariff development. |
| IV Conto Energia | Ministerial Decree 5 May 2011 | Strong growth of industrial and productive plants. |
| V Conto Energia | Ministerial Decree 5 July 2012 | Final phase of the Conto Energia system. |
What was built through Conto Energia
According to GSE data and sector reports, the Conto Energia scheme supported more than 550,000 incentivised plants, for approximately 17.7 GW of installed capacity. These plants created the industrial base of Italian photovoltaics and still represent a significant part of national solar generation.
The Italian PV fleet at end-2024
GSE’s 2024 statistical report shows that the Italian PV fleet is not made only of large power plants, but of a diversified network of residential, productive, agricultural, industrial and utility-scale plants.
| Capacity class | Number of plants | Installed capacity | Interpretation |
|---|---|---|---|
| Up to 10 kW | about 1,605,000 | about 7,831 MW | Residential and distributed generation. |
| 10-200 kW | about 250,800 | about 9,007 MW | Businesses, agriculture, SMEs and productive uses. |
| 200-500 kW | 8,820 | 3,059.9 MW | Intermediate productive plants. |
| 500 kW-1 MW | 8,841 | 7,497.8 MW | Central class for small and medium energy entrepreneurs. |
| 1-5 MW | 1,856 | 4,109.9 MW | Medium-scale production plants. |
| 5-10 MW | 277 | 1,966.0 MW | Industrial scale plants. |
| Above 10 MW | 111 | 3,530.7 MW | Utility-scale and large investments; around 10% of total capacity. |
Why solar helps Italy compared with fossil fuels
Lower gas imports
Every MWh generated by solar power reduces the need for fossil generation, especially during central daylight hours.
Lower emissions
Photovoltaic generation produces no direct CO₂ emissions during operation.
Wholesale price effect
Solar generation has very low marginal cost and helps reduce marginal prices when output is high.
Avoided CO₂ emissions: updated 13 August 2026
Italian photovoltaics generated 44.290 TWh net in 2025. Applying an average net fossil-mix factor of 428.4 kg CO₂/MWh, reconstructed from ISPRA's 2025 data, gives a standardised estimate of 18.974 million tonnes of CO₂ avoided.
Terna recorded 26.294 TWh of net PV generation from January to June 2026. Provisionally applying the same factor, pending ISPRA's 2026 factor, gives 11.264 million tonnes of CO₂ avoided. As at 13 August 2026, Terna has not yet published the definitive monthly figure for July, so no projection or unconsolidated value is used.
| Month | PV generation 2025 | CO₂ avoided 2025 | PV generation 2026 | CO₂ avoided 2026 |
|---|---|---|---|---|
| January | 1,529 GWh | 0.655 Mt | 1,762 GWh | 0.755 Mt |
| February | 2,063 GWh | 0.884 Mt | 2,589 GWh | 1.109 Mt |
| March | 3,419 GWh | 1.465 Mt | 4,004 GWh | 1.715 Mt |
| April | 4,349 GWh | 1.863 Mt | 5,378 GWh | 2.304 Mt |
| May | 5,039 GWh | 2.159 Mt | 6,014 GWh | 2.576 Mt |
| June | 5,659 GWh | 2.424 Mt | 6,547 GWh | 2.805 Mt |
| July | 5,565 GWh | 2.384 Mt | Official figure not yet published | — |
| August | 5,109 GWh | 2.189 Mt | — | — |
| September | 4,181 GWh | 1.791 Mt | — | — |
| October | 3,321 GWh | 1.423 Mt | — | — |
| November | 2,283 GWh | 0.978 Mt | — | — |
| December | 1,773 GWh | 0.760 Mt | — | — |
| Total | 44,290 GWh | 18.974 Mt | 26,294 GWh (Jan–Jun) | 11.264 Mt (Jan–Jun) |
Official sources: Terna, March 2026 monthly report; Terna, January–June 2026 data; ISPRA, Report 430/2026.