Getting government incentives for industrial solar energy.

Since its early developments, the photovoltaic sector has benefited from measures, tools, and resources aimed at encouraging the adoption of this technology.

Meanwhile, a supply chain has emerged, the technology has been refined, and technical frameworks and regulations applicable to an increasingly deep sector with a growing number of stakeholders have been developed and continue to evolve.

Today, the issue of energy efficiency is central.

Industrial entities (both small and large) have implemented specific plans to reduce environmental impact and energy costs.

In this context, the photovoltaic system has become a fundamental strategic asset.

Italy, committed to transitioning towards a low-carbon economy, has placed increasing emphasis on the adoption of renewable energies.

 

 

The record numbers of 2023 testify to this commitment: +111% of operational photovoltaic capacity compared to 2022; +15.4% of electricity production from renewable energy sources.

Record energy prices since the second half of 2021, exacerbated by the Russian-Ukrainian conflict and imperfect market functioning, have provided a strong impetus to accelerate the implementation of the European Green Deal and strengthen the Union’s energy resilience by accelerating the transition.

The crisis has accelerated some processes and introduced new tools, resources, and reforms:

> The National Recovery and Resilience Plan (PNRR);

> RepowerEU

> The FF55 Package, all embedded in the strategy to achieve the emission reduction targets set at the EU level by 2030.

 

But let’s get to the point. What incentives does the beginning of 2024 offer?

Pending the Transition Plan 5.0, two important measures have been introduced:

> The agrivoltaic decree, aimed at businesses and agricultural entrepreneurs;

> The ACER decree, the decree on energy communities, aimed at everyone.

 

 

Measure for Agrivoltaics

Decreed on February 13, 2024, by the Ministry of the Environment and Ecological Transition (MASE), a clear framework has been outlined for Italian agricultural entrepreneurs interested in adopting innovative agrivoltaic technology.

This decree defines the procedures for accessing government incentives aimed at experimental agrivoltaic installations, proposing a series of detailed guidelines for the harmonious integration of agricultural activities and solar energy production.

Beneficiaries and Requirements

Agricultural entrepreneurs, including consortia and cooperatives, can benefit from a non-repayable contribution covering 40% of eligible costs.

The adoption of innovative integrated solutions and compliance with specific technical and environmental requirements are required, including the continuity of agricultural and pastoral activities on the affected land.

Allowed Interventions and Eligible Expenses

Eligible interventions include the implementation of advanced agrivoltaic installations, storage systems, connection to the power grid, necessary construction works, and equipment for monitoring.

Expenses incurred must be receipted and fall within the indicated maximum investment cost.

Access Procedure and Selection

Access to incentives is through competitive public procedures, with the obligation to offer a percentage reduction on the reference tariff not less than 2%.

The Energy Services Manager (GSE) forms a ranking based on the discount offered compared to the reference tariff, with priority criteria including the percentage of self-consumed energy and the date of completion of the participation application.

 

 

Disbursement of Incentives

The incentives are disbursed by the GSE for a period of twenty years from the date of the plant’s commissioning, with incentivizing tariffs adjusted to account for different levels of insolation.

The capital contribution is disbursed following the notification of commissioning, upon submission of the documentation of incurred expenses.

Deadlines and Next Phases

Within the next 15 days, the Ministry will approve the operational rules for the recognition of incentives, while the GSE will issue an initial notice for the submission of applications within 30 days of the approval of the rules.

In summary, the MASE decree offers agricultural entrepreneurs a unique opportunity to adopt cutting-edge technologies that combine solar energy production and agricultural activities, thus contributing to the environmental and economic sustainability of the Italian agricultural sector.

 

The CER Decree and the Advent of Renewable Energy Communities in Italy

On January 18th, with the approval of the Court of Auditors, the CER Decree came into effect, marking a significant step towards the proliferation of Renewable Energy Communities (CER) in Italy.

These communities, outlined in the European Directive RED II (2018/2001/EU), aim to combine the efforts and resources of citizens, businesses, and local institutions to produce, exchange, and consume energy from renewable sources on a local scale, thereby promoting sustainable and circular socio-economic models.

Tools and Incentives

The CER Decree identifies two main tools to realize CER:

> A non-repayable grant

> An incentivizing tariff on renewable energy produced.

The grant, funded by the PNRR, can cover up to 40% of the costs for communities operating in municipalities with fewer than 5,000 inhabitants.

The incentivizing tariff, managed by the Energy Services Manager (GSE), will be recognized for 20 years and will vary from 60 to 120 euros/MWh, with additional increases for photovoltaic plants based on geographic location.

Implementation Process

The Ministry of the Environment and Energy Security will soon approve the operational rules for the recognition of incentives, while the GSE will handle requests through its portal.

Participants and Types of Installations

CER can involve citizens, local authorities, businesses, and other entities, allowing for the sharing of electricity produced from renewable sources such as photovoltaic, hydroelectric, wind, biogas, and biomass.

 

 

Objectives and Challenges

According to Italia Solare, by 2030, Renewable Energy Certificates (RECs) could contribute up to 15% to achieving photovoltaic production goals.

In summary, the REC Decree represents a significant step towards creating a more sustainable and decentralized energy system in Italy, encouraging active participation of citizens and local communities in the transition to a green energy future.

However, some challenges have been highlighted: only communities duly constituted at the date of operation of the plants will be eligible for incentives.

Lastly, but not least, we have regional calls for proposals.

In recent years, these have emerged as the most suitable measures for industrial enterprises.

Usually funded through the Development and Cohesion Plan, in the “energy efficiency of enterprises” segment, each region periodically offers funds and incentives.

The measures are discretionary, so the valuable advice is to carefully monitor the official channels of one’s own region.

In-depth analysis by Dr. Emanuele Massafra – Business Development Gruppo Inveco