Italy’s solar market slows for first time since 2020 – Review Energy

As of December 31, 2025, Italy had 2,092,088 photovoltaic systems connected, with a total capacity of 43,513 MW. Of this capacity, 27% (11,627 MW) came from residential systems, 43% (18,850 MW) from commercial and industrial (C&I) installations, and 30% (13,036 MW) from large-scale projects. These figures emerge from analyses by Italia Solare based on Terna’s Gaudì data.
Connected capacity during 2025 reached 6,437 MW, marking a 5% decrease compared to 2024. The decline was mainly driven by the residential (-32%) and C&I (-26%) sectors, partially offset by a 15% increase in large-scale connections. Apart from 2020 (the COVID year), this is the first reduction in connected capacity since 2013. The number of new installations also fell in 2025, with 213,200 systems installed, down 25% from 283,914 in 2024.
“These data translate into a tangible negative impact on households and businesses, making them less resilient to electricity price fluctuations. Less well-being, less competitiveness. The increase in large-scale installations is obviously positive, as it contributes to lowering energy prices, but considering the expected shift from PUN to PZ, the benefits on bills will mainly favor households and businesses in the regions where large plants are concentrated, namely the South,” commented Paolo Rocco Viscontini, President of Italia Solare.
The distribution of new capacity installed in 2025 shows the following trends:
Residential sector (<20 kW): Following the end of the Superbonus wave, the residential segment stabilized at around 300 MW installed per quarter, with a 24% decrease compared to 2024. The number of installations dropped from 274,537 in 2024 to 198,667 in 2025.
C&I sector (20 kW ≤ P < 1 MW): The commercial and industrial segment also declined by 21% compared to the previous year (2,194 MW in 2024 vs. 1,744 MW in 2025). The first three quarters saw a reduction, followed by a recovery in the last quarter. These fluctuations may be due to the market’s stop-and-go dynamic caused by numerous announced tenders, which often lead businesses to wait for certainty and contributions they do not require before investing in new plants.
Utility-scale sector (≥1 MW): In contrast, the utility-scale sector grew by 15%, with many large-scale systems connected (2,910 MW in 2024 vs. 3,412 MW in 2025), especially in the last quarter. This growth is the result of many authorizations issued in previous years. Analysis shows a strong acceleration for plants above 10 MW, with the last quarter alone (1,031 MW) surpassing the sum of the previous three quarters (688 MW).
“We encourage the government to implement financial support policies for households and businesses, especially facilitating access to credit. Photovoltaics are profitable even without incentives for businesses and with the necessary 50% deduction for residential systems, but what is needed is help for households and companies to advance the upfront costs of photovoltaic installations,” added Viscontini.
Northern Italy saw a significant decline from 2024 to 2025: Lombardy -19% (-174 MW), Emilia-Romagna -10% (-56 MW), Veneto -7% (-39 MW), and Piedmont -5% (-28 MW). In these regions, the development of large ground-mounted installations is constrained by restrictive regional policies, which will result in higher bills for households and businesses. Residential and C&I installations also declined.
In Central Italy, Lazio fell by 39% (-497 MW, influenced by large-scale connections in 2024), Umbria by 32% (-33 MW), and Tuscany by 11% (-26 MW). Meanwhile, Marche grew by 19% (+28 MW), Abruzzo by 13% (+19 MW), and Sardinia by 9% (+30 MW, mainly from previously authorized plants).
Southern Italy showed strong growth: Sicily +81% (+430 MW), Basilicata +31% (+25 MW), Apulia +24% (+79 MW), and Calabria +21% (+22 MW).
The last quarter of 2025 saw an acceleration in connected capacity, thanks to the commissioning of several utility-scale projects, with approximately 2.4 GW connected out of the total 6.4 GW for the year. The distribution of installations by size shows increasing polarization: while the residential segment shrinks, large plants above 1 MW grow rapidly, driven by projects authorized in previous years.
In 2026, the number of large-scale installations is expected to continue growing, also considering the results of the FER X auctions at the end of 2025. However, uncertainty remains: with persistent discussions about retroactive cuts to the Conto Energia tariffs for 2026 and 2027 (the third such intervention), it is unclear how many investors will continue to commit to Italy.
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