New decree in Italy cuts solar FiTs for exsiting plants

Jun 26, 2014 - The Italian government on Tuesday published a new decree that reduces solar feed-in tariffs (FiTs) for operational plants bigger than 200 kW as of June 25.

As per current rules, state-owned company Gestore Servizi Energetici (GSE) pays a fixed rate to solar plant operators for 20 years. Under the proposed new law, solar power generators can either voluntarily accept a flat 8% reduction of the 20-year tariff for the remaining incentive period, or extend their existing FiT contracts from 20 to 24 years and see the rate fall by between 17% and 25%. The reduction in the second case will depend on the period left under the contract.

The decree is subject to approval by the Parliament, with a decision to be issued within 60 days of the publication. The new regulations can be either changed or fully cancelled within the said period. Should the bill become law, it will come into force on January 1, 2015.

The change aims to eliminate privileges that have been accumulating with time and have been weighing on the industry, and to redistribute costs on the basis of effective consumption, Italy's industry ministry said earlier this month.

According to the Assorinnovabili association, the proposed regulation is an unacceptable retroactive measure which damages Italy's credibility, betrays legal certainty and definitely drives investments away from Italy. It is a measure against the Italian Constitution and against the European Union, the association commented recently.

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