In Italy, the photovoltaic sector is playing an increasingly decisive role for both individuals and companies, thanks to dedicated funding. Our country is one of the most virtuous in Europe, together with the Netherlands, Germany, Spain and Greece. There are more than 1 million installations using solar energy, and the regions with the highest number of them are Lombardy and Veneto. Let's explore together all the advantages of a photovoltaic system.
The most widely used renewable energy with the least environmental impact is solar energy, which becomes a perpetually available and free energy source for photovoltaic systems.
In Italy, this type of energy has long been used for both private and business use to generate electricity. According to the “GSE Photovoltaic Statistical Report 2021”, there are more than 1 million such plants in Italy (+44.8% compared to 2020), with a total capacity of 22,594 MW and an average size of 22.2kW.
Lombardy (more than 160,000) and Veneto (almost 150,000) are the regions with the highest concentration, while Apulia has the record for the highest installed power, accounting for 13% of the national total.
Advantages and disadvantages of photovoltaic systems
One of the acknowledged advantages of photovoltaic systems is that they produce energy without releasing any harmful substances into the atmosphere. Energy is produced from one source, the sun, which has an endless potential for supply.
Photovoltaic systems are basically made up of two elements: the panels that capture solar energy and produce continuous electricity, and the inverters that transform electricity from direct to alternating current so that it can be used in our homes/offices.
There is also good news in terms of cost. Since it is no longer necessary to purchase all electricity from traditional sources, such as oil and gas, the bill for energy is much lower.
Some critical points must be considered, but they are easily overcome. Firstly, solar panels have power limitations that require the installation of supplementary storage systems. Solar energy is a "non-programmable" energy source subject to seasonal variations. The considerable installation costs are amortised over a period of about 6-10 years (a relatively short time, if one considers that a photovoltaic system has an average lifespan of about 25 years).
Clearly, the extent of advantages and disadvantages varies depending on the type of photovoltaic system adopted and the expenses incurred. In particular, the two most common types of plants today are those connected to the national electricity grid (on-grid) and stand-alone (“island”) plants.
Advantages of on-grid photovoltaic systems
On-grid photovoltaic systems are the most common. Usually installed on the roofs of buildings when they are located in urban areas, they are connected to the national electricity grid and, in the case of two-way metering, offer the user the possibility of “feeding” any excess energy produced into the grid via the distributor's meter, which will calculate its value as energy credit. The maximum that can be exhausted is 100% of the amount of energy consumed. In Italy, anyone who has a photovoltaic system can take advantage of the so-called “on-site exchange”, i.e., a system that allows you to get credits from your energy provider when you feed self-produced, non-consumed electricity into the grid.
These credits are used to purchase electricity during the night, when the photovoltaic system does not generate electricity. We should remember that the economic value of the immense energy available the grid is calculated to be twice as low as the cost of energy purchased through the national grid.
Advantages of stand-alone photovoltaic systems
The stand-alone or “island” photovoltaic system is popular when the property does not have a connection to the national grid or when self-consumption has to be optimised. The energy produced by the photovoltaic field goes to serve the active users in the house, and the remaining energy is stored in storage batteries until fully charged; any residual energy is lost and dissipated as heat.
At Fervo, we define custom-designed solutions to meet your company's financial budget requirements, and we also devise a payback plan that does not involve large initial costs.
To each company its own plant
This distinction helps to understand a basic rule regarding the adoption of a photovoltaic system: every company has specific needs; hence the importance of identifying the system best suited to its characteristics.
It is pointless and wasteful to equip a building with a system that is too powerful and produces more energy than is required. Of course, It is also unnecessary and impractical to adopt a system that is not sufficient to meet the production and management demands of the company.
That’s why assessing the company’s needs is a crucial step in deciding the most suitable kW output for your company. As a rule of thumb, an output of up to 20 kW is considered suitable for small businesses, such as shops, small sheds and greenhouses. Between 20 kW and 50 kW are perfect for medium-sized businesses, such as restaurants, holiday farms, farms, and businesses that require a certain amount of energy, while 100-200 kW are suitable for the energy demands of large companies, hotels, particularly large industrial sheds, and large warehouses.
Our consultants can assess your needs and suggest which photovoltaic system is best suited to your requirements.
The advantages of photovoltaic systems include incentives for companies
In Italy, the use of photovoltaic systems is favoured by several incentives for companies. They were further enhanced in 2022 as a result of the ongoing energy crisis and the difficulties arising from the complicated international political situation.
Those concerning so-called energy communities, i.e., the possibility of being part of multiple actors sharing energy production, distribution and consumption. The energy community can include both actors who produce energy through photovoltaic systems, and ordinary consumers who do not own such systems and, therefore, purchase it from the former. The expected economic benefits consist of incentives that can be cumulated with those already envisaged to promote the use of storage systems and the return of certain items on the bill.
The National Transition 4.0 Plan - which updates the provisions included in Budget Law 2020 - also includes three main incentives:
- a new depreciation rate for photovoltaic incentives, aimed at companies: a deduction rate increased from 10% in 2021 to 6% for the whole of 2022;
- a tax credit derived from the purchase of capital goods, usable over the next three years;
- an extension of the duration of the tax credit accrued from the use of incentives, which may also be claimed for 2021 and 2022 for interventions and purchases of capital goods contracted from 16 November 2020 to 31 December 2022.
We at Eco2zone - an E.S.Co (Energy Service Company) certified Fervo Group company - are at the client’s disposal to analyse requirements and supervise the installation and maintenance of photovoltaic systems. We identify the most suitable solution for your company, solve the red tape problems required to start solar energy production activities, and assist you in applying for incentives and subsidies.
Source: GSE Photovoltaic Statistical Report 2021 and Teknoring, the portal for technical professions