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Peanuts: Italy To Cap Solar Subsidies At 6 – 7 Billion Euros Per Year

Italy has confirmed it wants to cap subsidies for solar developers at between 6 and 7 billion euros ($10.02 billion) per year by the end of 2016, when installed capacity is expected to be around 23,000 megawatts.

Italy’s solar sector, among the biggest in Europe, has boomed since 2007 when generous state-backed production incentives were first launched, prompting the government to rewrite the rules to put a lid on subsidies.

Under existing norms, solar incentives would cost already around 3.5 billion euros per year as of 2011 based on forecasted installed capacity of around 8,000 megawatts.

Reuters, 20 April 2011