Italy's Ministry of Environment and Energy Security (MASE) has launched a €262 million incentive scheme to drive commercial and industrial (C&I) solar power and energy storage in its southern regions. This initiative targets self-generation and self-consumption of PV systems, addressing grid instability and high electricity costs while promoting distributed energy systems. By supporting photovoltaic solar power system installations with optional battery energy storage system (BESS) integration, the policy aims to accelerate Italy's renewable transition and enhance local energy resilience.
Policy Overview: Tackling Southern Italy's Energy Challenges
Southern Italy, known as Mezzogiorno, faces persistent issues like weak grid infrastructure and high industrial energy costs, despite abundant solar resources. This €262 million fund seeks to overcome these barriers by encouraging investments in distributed energy systems, including photovoltaic solar power systems and solar thermal systems. The move is designed to boost self-consumption of solar PV and reduce reliance on northern power imports, aligning with Italy's broader energy security goals.
Eligible Projects and Businesses
The incentive covers photovoltaic or Photovoltaic Thermal (PV/T) solar panel systems with capacities between 10kWp and 1MWp, and allows for optional energy storage integration via an energy storage system (ESS). Projects must focus on self-generation and self-consumption of PV, rather than grid sales. Eligibility extends to businesses of all sizes, including legal enterprise networks, located in towns with over 5,000 residents and within industrial or production zones, fostering widespread adoption of C&I solar PV.
Funding Structure and Application Process
With a total budget of €262 million, the scheme allocates 60% to small and medium enterprises, including at least 25% for micro and small businesses. Funding comes as direct grants for equipment investments, with subsidies varying by company size and expense type. Applications open on December 3, 2025, and close on March 3, 2026, via the GSE online portal, streamlining access for companies pursuing self-built solar PV and battery energy storage system projects.
Regional Focus and Future Implications
This policy targets seven southern regions—Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily—where high solar potential meets low PV adoption. By enabling "enterprise networks" to jointly apply, it opens doors for shared distributed energy resources (DER) and energy communities. This approach not only strengthens grid resilience but positions Italy solar initiatives as a model for sustainable C&I solar expansion, driving long-term economic and environmental benefits.
Post time: Nov-20-2025