Image: Ricardo Gómez Angel, Unsplash
The Italian government has increased incentives for PV projects using EU-made solar panels under the Transizione 5.0 Tax Credit scheme, a tax program aimed at transitioning industrial processes to renewable energy.
The tax credits cover up to 35% of the cost of solar panels and are awarded through tenders for projects using modules made in the EU. The calculation basis for the tax benefit increases from 120% to 140% for cells with an efficiency of at least 23.5% and from 140% to 150% for modules with bifacial silicon heterojunction or tandem cells with an efficiency of 24% or higher.
A tax incentive of 130% now applies to modules with a minimum return of 21.5%.
The new rules simplify investment margins and reduce them to two: a maximum of €10 million ($10.2 million) and €10 million to €50 million. However, the updated policy eliminates the additional 20% to 25% tax credit previously granted to projects using EU-made modules that reduce energy consumption by 6% to 15%.
The provisions allow tax credits to be combined with those for investments in the Special Economic Zone and Simplified Logistics Zones of Southern Italy, as well as with other EU incentives, provided they do not overlap in terms of cost recovery.
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