A contentious new solar incentive in Italy, intended to accelerate the nation’s green transition, is at the center of a storm of criticism from European solar manufacturers. Eleven companies have formally objected, arguing that the policy’s highly specific technological requirements create unfair market conditions and could jeopardize the country’s ambitious renewable energy goals.
Narrow Criteria Ignite Controversy
The measure in question, known as the “Iperammortamento” and included in Italy’s 2026 budget, offers significant tax benefits for investments in high-efficiency solar panels. However, a coalition of European module makers, including Bisol and FuturaSun, asserts that the eligibility criteria are too restrictive. The updated Italian solar tax incentive is exclusively available for projects using European-made heterojunction (HJT) bifacial modules with cell efficiency over 24% or next-generation tandem perovskite modules.
Critics argue this framework effectively sidelines a wide array of other high-performance technologies that are integral to the modern solar panel manufacturing process, such as TOPCon and back-contact modules. This has led to accusations that the policy funnels support to a very small number of producers, potentially distorting the competitive landscape detailed in market analyses like the Italy Solar Panel Manufacturing Report.
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Market Distortion and Supply Chain Risks
The protesting manufacturers warn that this narrowly focused approach constitutes “a clear restriction of the market.” They highlight that tandem perovskite technology is not yet commercially mature, further narrowing the field to HJT modules. This situation, they claim, primarily benefits 3Sun, a major domestic manufacturer owned by Enel, raising serious concerns about fair competition and the potential for a protected monopoly. Such a market concentration could have far-reaching effects on the entire solar manufacturing cost structure for new Italian projects.
By limiting technology options, the policy could slow the pace of new solar installations and inflate procurement costs. Instead of fostering a diverse and resilient European manufacturing base, which is crucial for strengthening EU energy security, the incentive risks undermining the very industry it aims to support by ignoring the broad fundamentals of solar panel production.
A Challenge to Italy’s Green Ambitions
This controversy presents a significant challenge for Italy as it works to build upon its growing renewable portfolio and meet its clean energy targets. The dispute underscores the fine line between promoting specific, advanced technologies and ensuring a healthy, competitive market that can deliver rapid, widespread deployment.
As the government faces pressure to revise the incentive, the outcome will be pivotal. A resolution that broadens the technological scope while still rewarding high-performance, European-made products could appease manufacturers and ensure the policy effectively accelerates Italy’s energy transition without creating unintended market bottlenecks. For those interested in the industry’s technical foundations, a free e-course on solar manufacturing provides deeper insights.
Sources
- Italian photovoltaic sales dropped 33% in the first half of the year
- Renewable Energy 2025 – Italy – Global Practice Guides – Chambers
- Italy’s recovery and resilience plan – Reforms and Investments
- Energy Law Italy Outlook November 2025 – ADVANT Nctm
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