Italy to allocate funds for 1.5 GW of agrivoltaics
Rome has announced support for the construction of over 1.5 gigawatts of capacity in the Agro PV technology sector. The aid will take the form of grants and market premiums. A key requirement for participation in the program is ensuring that agricultural production can continue on the land where the installations are built.
Auction Results
In the latest auction organized by the Italian energy regulator Gestore dei Servizi Energetici (GSE), support was awarded to 540 projects with a total capacity of 1,548 MW. The total number of submitted projects was 643, with a combined capacity reaching 1.7 GW. These figures highlight the enormous interest from farmers and businesses in this form of renewable energy.
One of the flagship projects under the program will be a 48 MW farm in Sardinia. Additionally, in Sicily, a record-breaking 213.7 MW installation will be developed by the company Sun Project. Smaller projects are also part of the initiative—for example, a Sicilian farmer will install a 199 kW system.
Mandatory Cooperation with Farmers
To receive financial support, each project must include cooperation with agricultural enterprises. Additionally, a portion of the funds is allocated for smaller systems with a maximum capacity of 1 MW, financed directly by farmers. The projects must not significantly disrupt agricultural production. Therefore, vertical systems or those using trackers to follow the sun’s movement are preferred, as they minimize the impact on crops.
EU Funded Financing
Support for agrivoltaics is part of the National Recovery and Resilience Plan, which redistributes funds from the Next Generation EU program, providing Italy with nearly €200 billion. The funding is designated for digitization, innovation, energy transition, and sustainable mobility development.
Why Only Agrivoltaics?
In Italy, the construction of photovoltaic power plants on agricultural land is limited exclusively to Agro PV systems. This means that traditional solar farms cannot be developed on these lands, forcing investors to implement solutions that allow continued agricultural use. In December 2023, the Italian government issued a decree supporting the development of agrivoltaics, including investment grants and market premiums based on the Contract for Difference model.
A Contract for Difference in the energy market is a support mechanism where two parties—the funding entity and the beneficiary—agree on a reference price. If the market price of electricity falls below this value, the supporting entity compensates the difference to the beneficiary. However, if the market price exceeds the agreed level, the surplus goes to the supporting entity.
Agrivoltaics and EU Climate Goals
The European Union has set ambitious targets—to reach a total solar capacity of around 750 gigawatts by 2030. One of the ways to achieve this plan is through dual land use, especially with agrivoltaics. Traditionally, agriculture and renewable energy have competed for space, but modern installations integrate both solutions. Financial support plays a crucial role in further sector development. The subsidies in Italy are just one example of such initiatives. Germany has introduced a special auction segment for solar installations as part of its energy package. Power Purchase Agreements (PPAs) are also becoming an increasingly popular financing model, enabling the first projects in Spain and France. In Lower Austria, a farmer, together with a local energy community, financed a 499 kW solar installation on farmland.
Agrivoltaics offer many benefits—not only do they allow energy production, but they also protect crops from extreme weather conditions and reduce soil evaporation, enhancing farm resilience against droughts.
Source: pveurope.eu