Data Snapshot

Italy Transforms into a Utility-Led PV Market

Values in MWdc.

Residential (≤20 kW)Small Commercial (>20 ≤100 kW)Medium Commercial (>100 ≤500 kW)Large Commercial-Small Industrial (>500 ≤1000 kW)Medium-Large Industrial (>1000 ≤5000 kW)Utility (>5000 kW)
2021430137168695725
20221124164261160309464
20232430499755472463614
202417894768156709512094
202513625457085998722351
Yearly Installed PV Capacity Italy — Source: EUPD Research | Section last updated: Q2 2026

As one of the pioneers in the European field of solar PV, Italy ranks third in terms of cumulative PV capacity in the EU. Over the past few years, it’s PV market dynamics have been shifting toward a utility-led market due to phasing out schemes for small-scale systems, and an increasing number of large-scale plants being awarded from auctions. The last few years saw a clear decline in new installations in the residential segment, with the segment’s total share in added installations declining from about 46% (2,430 MWdc) in 2023 to 21% (1,362 MWdc) in 2025. Meanwhile, the utility segment is showing strong growth, increasing from a 11.7% (614 MWdc) share in 2023 to about 36% (2,351 MWdc) in 2025.

Frequently asked questions

Italy ranks third in terms of cumulative PV capacity within the European Union. As one of the pioneers in European solar PV, Italy has established itself as a significant player in the region’s renewable energy landscape, contributing substantially to the EU’s overall solar power generation.

Italy’s PV market is shifting towards a utility-led model primarily due to the phasing out of support schemes for small-scale systems and an increasing number of large-scale plants being awarded through auctions. This strategic pivot reflects a broader trend in the European solar sector, favoring larger, centrally managed projects over distributed generation.

Italy’s residential PV segment saw a significant decline in its share of new installations, falling from approximately 46% (2,430 MWdc) in 2023 to 21% (1,362 MWdc) in 2025. This reduction indicates a clear shift away from small-scale residential systems within Italy’s evolving solar market dynamics.

Italy’s utility PV segment experienced strong growth, with its share of new installations increasing from 11.7% (614 MWdc) in 2023 to approximately 36% (2,351 MWdc) in 2025. This substantial expansion underscores the country’s strategic focus on large-scale solar projects, driving the overall market transformation.