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Decree for the incentivisation of electrical and thermal renewables in smaller islands

Source: International Energy Agency
Last updated: 22 May 2025

The Ministerial Decree of 14 February 2017 defined the energy evolution objectives of the smaller islands, through the development of renewable electrical and thermal sources, defining for each of the 20 smaller islands, 14 of which are in Sicily, the specific electrical and thermal objectives. For renewable electrical sources, photovoltaic and otherwise, there is an all-inclusive “basic tariff” on the energy fed into the grid, and a premium on self-consumption. With regard to the basic tariff, the producer can choose between a fixed tariff, differentiated only by power class and group of islands, and a variable tariff, indexed to the efficient avoided cost for each island, determined annually within certain limits starting from the price of diesel. For thermal renewables, solar thermal systems used for domestic hot water or for solar cooling, and heat pumps dedicated only to the production of domestic hot water in place of electric water heaters, are eligible for incentives. The incentive for thermal RES provides for a one-off remuneration, as a partial reimbursement of the expenditure incurred and differentiated for the various types of systems.

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