As part of the liberalisation package adopted on 20 January 2012, the Italian Government has decided to stop incentives for ground-mounted photovoltaic (PV) plants on agricultural land.

The previous Government had already introduced limitations to photovoltaic plants located on agricultural land by limiting the incentives to only those not exceeding 1 MWp and on the condition that they did not cover more than 10 per cent of the available land. An exception was made where the land had been abandoned for at least five years. These limitations were set out in paragraphs four, five and six of Article 10 of legislative decree no. 28 of 3 March 2011 (the Renewables Decree), which have now been abolished.

The current Government has now decided to eliminate incentives for all ground-mounted photovoltaic plants on agricultural land. Article 65 of the Liberalisation-Decree (the Decree) provides that the new rules will apply to all new installations, except those for which the request for authorisation was filed before the entry into force of the Decree and provided that operations start within one year from the entry into force of the Decree. The PV plants that do not fall under the application of Article 65 shall, in any case, comply with the limitations under paragraphs four, five and six of Article 10 of legislative decree no. 28 of 3 March 2011.

In turn, the Government has increased incentives for photovoltaic plants installed in greenhouses, by providing that they will receive the full tariff for rooftop PV plants instead of the currently applicable rate, an amount between the tariffs awarded for rooftop and the tariffs for ground-mounted facilities.

The Decree has now entered into force following its publication in the Official Gazette. Parliament has 60 days, as of the publication, to approve and convert the Decree into law. During such period, Parliament may introduce further amendments. It remains to be seen whether Parliament will approve the increase of the incentives for greenhouse PV plants.