Source：taiyangnews

Italy is supporting solar PV cell and module production within the EU through its Transizione 5.0 tax credit scheme. (Illustrative Photo; Photo Credit: hyotographics/Shutterstock.com)
Key Takeaways
Italy has updated its tax credits slabs for solar PV production under the Transizione 5.0 Scheme 

It includes increased limits for tax credit calculated for EU-made solar cells and modules  

The credits may be clubbed with those provided for investments in the Special Economic Zone  

Italy has determined tax credit rates for high-efficiency solar PV cells and modules produced within the European Union (EU) under the country’s Transizione 5.0 Tax Credit scheme or Transition 5.0. The scheme encourages industrial investments in renewable energy sources, including solar PV, with an aim to reduce energy consumption. Beneficiary projects are referred to as innovative projects.   

Under the latest update of the Transizione 5.0 scheme, tax credit will be calculated as 130% of the cost for modules meeting the minimum power conversion efficiency of 21.5%, 140% for modules meeting the 23.5% cell efficiency, and 150% for modules with 24% cell efficiency under the 2025 Budget Law.  

The 150% threshold is for modules produced in the EU using silicon heterojunction (HJT) bifacial solar or tandem cells with a cell efficiency of at least 24%, also made within the bloc. 

These slabs are an increase over the previous limit of 120% for cell efficiency level of at least 23.5%, and 140% for bifacial or tandem cell efficiency of at least 24%.  

According to local consulting network Rete Agevolazioni these tax credits may be combined with incentives provided for investments in the Special Economic Zone. 

The Transizione 5.0 scheme aims at supporting businesses to adopt sustainable renewable energy models for production processes. It is funded with €6.3 billion from REPowerEU, out of which €1.89 billion is reserved for investment in assets for self-production of energy from renewable energy resources intended for self-production.

It is open to all companies and permanent establishments within Italy. Together, both Transizione 4.0 and 5.0 have a combined budget of €12.7 billion. Tax credits under Transizione 5.0 will be available for companies for their new investments starting from January 1, 2024 till December 31, 2025, according to the country’s Ministry of Business and Made in Italy. 

Speaking of PV technology, Italy is seeing a number of HJT solar PV manufacturing projects coming up in the country, with 3SUN expanding its 200 MW Catania fab to 3 GW. Leading Chinese HJT player Huasun Energy is also partnering Bee Solar for GW-scale HJT wafer, cell and module production in the country (see Chinese Partnership For GW-Scale Heterojunction Production In Italy).

At the recently concluded TaiyangNews High Efficiency Solar Technologies 2024 Conference, 3SUN CTO Cosimo Gerardi shared the company’s plans to venture into HJT and perovskite tandem aiming for 30% efficiency (see Quality Improvement & Cost Reduction High On 3SUN’s Agenda).