The Italian government has recently updated the tax credit standards for high-efficiency solar cells and modules within the “Transizione 5.0 Tax Credit Scheme.”
According to the country’s 2025 budget bill, the new tax credit policy will calculate credit amounts based on the efficiency thresholds of PV modules and cells. Specifically, PV modules with a minimum conversion efficiency of 21.5% will receive a tax credit equivalent to 130% of their cost. For PV cells with efficiencies between 23.5% and 24%, the tax credit ratio is 140% of the cost, while cells with efficiencies of 24% or above will enjoy a tax credit of 150% of the cost. Notably, the maximum tax credit rate of 150% applies to bifacial heterojunction (HJT) or tandem battery modules produced within the EU, with these modules’ cell efficiencies needing to reach 24% or above.
The updated tax credit scheme is funded by 6.3 billion euros from the EU’s REPowerEU plan, with 1.89 billion euros specifically dedicated to supporting investments in self produced renewable energy assets by enterprises. The scheme aims to encourage increased investment in renewable energy projects, including photovoltaics, in the Italian industrial sector, while supporting beneficiary projects known as “innovation projects” and helping enterprises adopt sustainable renewable energy models to optimize production processes.
The “Transizione 5.0 Tax Credit Scheme” is open to all companies and permanent establishments in Italy, and together with the previous “Transizione 4.0 Plan,” it constitutes a total budget of 12.7 billion euros for Italian enterprises and new investment projects confirmed by the “Italian Ministry of Made in Italy.” This initiative not only reflects the Italian government’s emphasis on the renewable energy industry but also provides more favorable tax policies for enterprises, promoting the research and development and application of green energy technologies.
Compared to previous versions, the tax credit standards in the latest bill have been increased. Under the old standards, components with a minimum cell efficiency of 23.5% received a tax credit of 120% of their cost, while bifacial or tandem cells with efficiencies of 24% or above received a tax credit of 140% of their cost. This adjustment will undoubtedly further incentivize enterprises to improve product efficiency and accelerate the popularization and application of high-efficiency solar cell technology.
