Italy Allocates Funds for 1.5 GW of Agrivoltaics
Rome Announces Support for the Construction of Over 1.5 Gigawatts of Agro PV Capacity
Rome has announced support for the construction of over 1.5 gigawatts of capacity within Agro PV technology. The aid will take the form of grants and market premiums. A key condition for participation in the program is ensuring the continued possibility of agricultural production on the land where the installations are located.
Tender Results
In the latest tender organized by the Italian energy regulator Gestore dei Servizi Energetici (GSE), support was granted to 540 projects with a total capacity of 1,548 MW. The total number of submitted projects was 643, with a combined capacity of 1.7 GW. These figures clearly demonstrate the high level of interest from both farmers and companies in this form of renewable energy.
One of the flagship projects under the program will be a 48 MW solar farm in Sardinia. Additionally, a record-breaking 213.7 MW installation will be built in Sicily, developed by the company Sun Project. Smaller projects are also being pursued – for instance, one Sicilian farmer will install a 199 kW system.
Mandatory Cooperation with Farmers
To receive financial support, each project had to include cooperation with farming operations. Part of the funding is designated for smaller systems with a maximum capacity of 1 MW, financed directly by farmers. The projects must also not significantly disrupt agricultural production. Therefore, vertical systems or those using solar trackers are preferred, as they minimize their impact on crops.
Funding from EU Funds
Support for agrivoltaics is part of the National Recovery and Resilience Plan, which provides for the redistribution of funds from the EU’s Next Generation EU program. This program grants Italy nearly €200 billion for digitization, innovation, energy transition, and the development of sustainable mobility.
Why Only Agrivoltaics?
In Italy, the construction of photovoltaic power plants on agricultural land is limited exclusively to agroPV systems. This means that traditional solar farms cannot be built on such land, pushing investors to adopt solutions that allow the land to continue being used for agricultural purposes. 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 (CfD) model.
As a reminder, a Contract for Difference in the energy market is a support model where two parties — the supporting entity and the beneficiary — agree on a reference price. If the market price drops below this value, the difference is paid to the beneficiary. If the market price rises above the reference, the excess is returned to the supporting entity.
Agrivoltaics and EU Climate Goals
The European Union has set ambitious goals – by 2030, the total capacity of solar installations is expected to reach around 750 gigawatts. One way to achieve this target is through dual land use, especially via agricultural photovoltaics. Traditionally, agriculture and renewable energy have competed for space, but modern installations combine both. Financial support plays a vital role in further developing the sector. Grants in Italy are just one example of such initiatives. Germany has introduced a dedicated auction segment for solar installations under its energy package. Power Purchase Agreements (PPAs) are also becoming increasingly popular, enabling the first projects in Spain and France. In Lower Austria, one farmer, together with a local energy community, financed a 499 kW photovoltaic system on arable land.
Agrivoltaics offer many benefits – not only enabling energy production but also protecting crops from extreme weather and reducing soil evaporation, thereby improving farms’ resilience to drought.
Source: pveurope.eu