Italy’s right-wing coalition passed regulations on Monday aimed at limiting the installation of solar panels on agricultural land, according to ministers, sparking criticism for potentially hindering Rome’s decarbonization objectives.
The newly enacted rules, part of a comprehensive package of measures designed to safeguard farming and fisheries, include a prohibition on the installation of photovoltaic systems with modules placed on the ground in areas designated as agricultural.
“We have put an end to the unregulated installation of ground-mounted photovoltaic panels,” stated Agriculture Minister Francesco Lollobrigida during a press conference following the cabinet meeting that endorsed the measures.
Agricultural lobbies, key supporters of Prime Minister Giorgia Meloni’s right-wing government, have long advocated for restrictions on solar panels, arguing that they are incompatible with agricultural activities.
Conversely, environmental organizations have criticized the government for undermining green targets established with partners from the Group of Seven (G7) industrialized nations.
Just last week, at the conclusion of a meeting of G7 energy ministers, Italy pledged to triple installed renewable energy capacity by 2030 and phase out coal-fired power plants in the first half of the next decade.
Energy Minister Gilberto Pichetto Fratin, who officials said initially opposed the plan, assured reporters that the new regulations would not impede the government’s goal of installing approximately 38 GW of photovoltaic plants by 2030.
Lollobrigida emphasized that the regulations do not target agri-voltaic projects, which involve placing solar panels over fields and vineyards to maximize land use by generating power while allowing crops to grow.
The government’s package will now undergo scrutiny by both houses of Parliament, with the opportunity for amendments.
Restrictions on solar plants could adversely affect energy companies such as ERG and ALERION, which have growth targets in the solar sector, according to financial analysts at Italian broker Equita.
Conversely, a slowdown in solar capacity development could benefit power generators like Enel, A2A, and IREN, which may face pricing pressures if solar energy expansion accelerates.
In the previous year, Italy added nearly 6 gigawatts (GW) in renewable energy capacity, with small solar plants accounting for the majority of the new green capacity, while wind projects comprised only 8%.