Solar power is an important contributor to electricity generation in Italy, accounting for 8% of the total in 2017. As of 2022, the country has a total installed capacity of 22.56 GW. In 2019, Italy set a national goal of reaching 50 GW by 2030.
Since the dawn of industrialisation Italy has utilized alternative energy sources with few fossil fuel resources of its own, including both hydroelectric and early solar power proposals. In more recent times, during the first decade of this century, Italy was the third country after Germany and Spain to experience an unprecedented boom in solar installations after actively promoting solar power through government incentives. In July 2005, the country launched its first "Conto Energia" programme supporting the development of renewable power. Growth in solar installations picked up immediately but it was the years 2009–2013 that saw a boom in installed photovoltaic (PV) nameplate capacity, increasing nearly 15-fold, and 2012's year-end capacity of over 16 GW ranked second in the world after Germany. Solar capacity growth slowed after 2013, due to cessation of governmental subsidy programmes. Since then, annual installed PV capacity has been growing steadily at around 300–400 MW per year.
Apart from the more conventional solar PV technology, Italy may in the future challenge Spain as the role of Europe's leading country in the developing technology concentrated solar power (CSP). CSP requires higher direct solar irradiation to function efficiently, which leaves only part of the country suitable for this technique. However, the southern regions as well as the islands of Sicily and Sardinia offer good conditions for CSP, and the Italian government has made large investments to promote this development.
Solar potential
The entire nation of Italy retains high potential for solar energy production, ranging from 3.6 kWh per square meter per day in the Po river plain to 5.4kWh per square meter per day in Sicily.
Photovoltaics
Installed capacity
Installed capacity in Italy was less than 100 MW before 2008. Growth accelerated during 2008 and 2009 to reach over 1,000 MW installed capacity and tripled during 2010 to exceed 3,000 MW. The standout boom year in Italy was during 2011 when over 9,000 MW of solar power was added. This huge and rapid rise in installations was mostly due to the very generous "Conto Energia" support schemes operating during these years. A more responsive support scheme might have reduced support more quickly and lead to less rapid growth during 2011 but stronger medium term growth.
By the end of the solar boom during 2011 Italy was second in the world in terms of installed capacity after Germany. Solar power accounted for 2.6% of electricity generated in the EU and 6.7% of electricity generated in Italy, the most in Europe. In 2011 Italy ranked first in installed solar power from new PV plants, with roughly four times the amount of power that was supplied in 2010. As of the end of 2010, there were 155,977 solar PV plants, with a total capacity of 3,469.9 MW. By the end of 2011 there were 330,196 installations, totalling 12,773 MW. Plants were increasing both in number and size as can be seen from the faster pace of growth of installed capacity compared with raw installation numbers.
Growth after 2011 slowed as the schemes were revised at sporadic intervals rather than timely interventions based on cost and deployment. In 2012 Italy added an estimated 3.4 GW of new capacity, a figure much reduced on 2011 but still a large rise in the context of solar development by that year. A 2013 report by Deutsche Bank concluded that solar power has already reached grid parity in Italy. With the ending of the Conto Energia schemes in July 2013 growth reduced considerably. Nevertheless, since 2014, annual capacity growth has remained consistent at around 2% per year or 300–400 MW per year to 2018. Much of this growth has been driven by residential Solar PV, subject to tax allowances, representing 40–50 per cent of new capacity in the years 2017–2018 alone. In 2017 the first incentive free Solar power plant was installed, with a 63 MW capacity followed by others up to 30 MW in size in 2018. By the end of 2018 installed capacity in Italy exceeded the 20 GW milestone for the first time. As of 2018, solar PV accounts for 7.9% of electricity demand, making Italy a major leader in solar power generation and development.