In what he calls "a dramatic display of the power feed-in tariffs (FITs) have" in driving solar markets, industry expert Paul Gipe at the End of June2010 reported that Italy had installed more solar photovoltaics (PV) in 2009 than the entire United States. Moreover, during the first quarter of 2010, Italy's total installed solar PV capacity also exceeded that of the US. Italy installed 720 megawatts (MW) of solar PV in 2009, 93 % of which was installed on rooftops in distributed applications, according to the Italian Photovoltaic Industry Association (GIFI; Milan, Italy). In contrast, the US installed only 435 MW during the same period, according to a draft report by the Interstate Renewable Energy Council (IREC).

Italy is installing more capacity every two months than California is installing per year

Gipe explains that Italy introduced a system of FITs for solar PV in February, 2007. By the end of 2007, the country had installed five times more solar PV than in the previous year. Despite numerous bureaucratic roadblocks, the solar industry took off in 2008 and installed nearly 350 MW, which was a record-breaking number at the time. Solar PV installations have been doubling since then and are expected to reach 1,500 MW in 2010. Gipe reports that Italy has become the world's second largest annual market for solar PV after Germany. IREC estimates that there was 1,250 MW of total installed solar PV capacity in the US at the end of 2009. Currently, the US is installing 40-50 MW per month, and Italy 125 MW per month. At this pace, Italy surpassed the US in total installed PV capacity before the end of the first quarter and likely by the end of February, 2010.

Revisions of Italy's FIT program unlikely to dramatically affect the PV market

Italy is about three-fourths the size of California, with which it is often compared because of their similarly-sized economies. Italy has a population of 60 million, to California's 40 million. By the end of 2010, Italy is expected to have a total installed capacity of more than 2,500 MW. This is two and a half times more capacity than forecasted in California, and one and a half times more than expected in the US. Gipe explains that Italy's 2007 decree set a solar PV target of 1,200 MW, which could reportedly be reached earlier this year. Unlike Spain, the government has no plans to cut the solar incentive program dramatically. The proposed revision to the FIT program ("conto energia"), currently waiting for approval, reduces the tariffs and sets a new target of 3,000 MW for the three-year period from 2011 to 2013. The revisions are expected to be approved sometime this summer. The proposal cuts the tariffs 18 % in three equal steps of 6 % during each of the first three quarters in 2011.