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| Author | Penny Liao |
| Updated | May 16, 2023 |
In 2022, Italy's Superbonus 110 program gave a tax credit of up to 110% for home renovations, prompting more than 1 GW (2 GWh) of annual ESS storage installation in its residential sector, six times more than 321 MWh in 2021. However, in February 2023, Minister of Economy and Finance Giancarlo Giorgetti announced an emergent halt of the policy, stating that the policy only benefited a small group of people but cost the government more than EUR 110 billion, therefore a threat to public finance.
On the other hand, Greece's Ministry of the Environment and Energy allocated EUR 200 million under the "Photovoltaics on the Roof" program, encouraging the installation of small-scale PV systems and battery energy storage systems by households and farmers to accelerate the achievement of net zero emission by 2050.
The program divides beneficiaries into four categories based on their income and identity, designating subsidy percentages according to the power or capacity of the PV or energy storage systems. Beneficiaries other than farmers must install solar-plus-storage systems to qualify for the subsidy. This new program can cover 20-65% of PV system costs, ranging from EUR 280 to EUR 1200, and 90-100% of ESS costs, ranging from EUR 600 to EUR 890.
Applicants of the program can install up to 10.8 kW of PV capacity and 10.8 kWh of energy storage capacity. The capacity of an energy storage system must equal at least an hour of generation of the PV system. Since the purpose of the program is to encourage self-consumption of residential projects, during the first five years after installation, the solar-plus-storage system can only send electricity back to the grid after its energy storage system is fully charged. Therefore, applicants must retain the application contract and all pertinent original documents for at least five years from the day of subsidy payment to obtain the full grant.
Table: details of “Photovoltaics on the Roof”
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The Photovoltaics on the Roof program can boost over 100 MWh of residential energy storage demand, as InfoLink estimates based on an average PV system power of 7 kW, an average energy storage system capacity of 8 kWh, and a total budget of EUR 200 million.
EUR 200 million seems attractive enough to spur more energy storage demand. But in fact, since the first three categories require integration with PV systems and the last category mandates only PV installation, half of the budget is allocated to PV.
The new policy can accommodate approximately 13,000 residential applications with an average storage of 8 kWh, offering subsidies of EUR 600-890/kWh for energy storage capacity and 90-100% for the system. A small-scale installation rush is likely at the end of 2023.
In 2022, factors such as war and rising electricity prices ignited residents' willingness to install energy storage systems. In 2023, the impact of external factors has diminished, and with the conclusion of Italy's generous incentive program, the annual installation of energy storage systems in Italy will decline to 1-1.5 GWh. Considering the end of Italy's Superbonus 110 and the introduction of Greece's Photovoltaics on the Roof, InfoLink expects to see Europe adding 8 GWh of residential energy storage capacity in 2023. Greece's new program is only part of the bloc’s effort to reach net zero by stepping up policies. Installing residential PV and energy storage systems for self-sufficiency is already a trend.
On the other hand, Greece's Ministry of the Environment and Energy allocated EUR 200 million under the "Photovoltaics on the Roof" program, encouraging the installation of small-scale PV systems and battery energy storage systems by households and farmers to accelerate the achievement of net zero emission by 2050.
The program divides beneficiaries into four categories based on their income and identity, designating subsidy percentages according to the power or capacity of the PV or energy storage systems. Beneficiaries other than farmers must install solar-plus-storage systems to qualify for the subsidy. This new program can cover 20-65% of PV system costs, ranging from EUR 280 to EUR 1200, and 90-100% of ESS costs, ranging from EUR 600 to EUR 890.
Applicants of the program can install up to 10.8 kW of PV capacity and 10.8 kWh of energy storage capacity. The capacity of an energy storage system must equal at least an hour of generation of the PV system. Since the purpose of the program is to encourage self-consumption of residential projects, during the first five years after installation, the solar-plus-storage system can only send electricity back to the grid after its energy storage system is fully charged. Therefore, applicants must retain the application contract and all pertinent original documents for at least five years from the day of subsidy payment to obtain the full grant.
Table: details of “Photovoltaics on the Roof”
The Photovoltaics on the Roof program can boost over 100 MWh of residential energy storage demand, as InfoLink estimates based on an average PV system power of 7 kW, an average energy storage system capacity of 8 kWh, and a total budget of EUR 200 million.
EUR 200 million seems attractive enough to spur more energy storage demand. But in fact, since the first three categories require integration with PV systems and the last category mandates only PV installation, half of the budget is allocated to PV.
The new policy can accommodate approximately 13,000 residential applications with an average storage of 8 kWh, offering subsidies of EUR 600-890/kWh for energy storage capacity and 90-100% for the system. A small-scale installation rush is likely at the end of 2023.
In 2022, factors such as war and rising electricity prices ignited residents' willingness to install energy storage systems. In 2023, the impact of external factors has diminished, and with the conclusion of Italy's generous incentive program, the annual installation of energy storage systems in Italy will decline to 1-1.5 GWh. Considering the end of Italy's Superbonus 110 and the introduction of Greece's Photovoltaics on the Roof, InfoLink expects to see Europe adding 8 GWh of residential energy storage capacity in 2023. Greece's new program is only part of the bloc’s effort to reach net zero by stepping up policies. Installing residential PV and energy storage systems for self-sufficiency is already a trend.