A photovoltaic system consists of interconnected solar panels that harness energy from the sun, a renewable and abundant resource, to generate electricity via the photovoltaic effect.
Photovoltaic systems can be connected to the traditional electricity grid or operate independently in stand alone or off grid configurations. In off grid systems, a battery storage solution allows you to use the energy produced even at night or during periods of low sunlight.
In the residential sector, solar energy systems are becoming increasingly common. These include systems installed on existing buildings after construction, known as BAPV or building applied photovoltaics, as well as BIPV or building integrated photovoltaics. BIPV systems are designed to be part of the building itself and are integrated directly into the structure or external envelope of new constructions.
Choosing photovoltaic energy in 2026 means reducing electricity costs, increasing property value and contributing to a more sustainable future.
Photovoltaics Worldwide
At a global level, countries are increasingly committed to the use of renewable energy, especially solar power. In Europe, the energy crisis is making the search for alternative sources even more essential in order to reduce dependence on third countries. In this context, the European Union has also strengthened its commitments on greenhouse gas emissions. For example, it has issued directives to increase the minimum share of energy consumption covered by renewables. Such percentages have rised from 32% to 42.5% by 2030, with a target of 45%. By 2030, renewable energy is also expected to account for 49% of the energy used in buildings. Furthermore, the Energy Performance of Building Directive of 2024 sets the goal of achieving net-zero emissions for the entire European building stock by 2050. However, Italy, along with other countries, has not submitted a national plan within the required deadlines, leading to the initiation of an infringement procedure by the European Union.
According to Solar Power Europe, global solar market growth is not evenly distributed, but is heavily concentrated in the Asia-Pacific region, driven by China.
In addition, in 2025, the European photovoltaic market recorded a slight contraction of 0.7 percent compared to the previous year. This shows the first annual decline after continuous growth that began in 2016. This slowdown is mainly due to a decrease in installations in the residential sector, largely linked to the reduction of incentive schemes.
Photovoltaics in European countries
In 2025, Germany confirmed its position as the undisputed leader in installed photovoltaic capacity in Europe. The Netherlands, traditionally among the top ranked countries, experienced a significant decline, in line with the slowdown in residential installations. In Denmark, one of the most advanced countries in the energy transition, growth rose from 4% percent to 13% percent in just four years. However, the expansion of photovoltaic systems, especially in rural areas, has faced strong criticism. This is mainly because of concerns about the impact on the landscape. In contrast, Spain, despite being a country with a high level of photovoltaic adoption, is criticised for not fully exploiting the extensive rural land for solar technology.
Photovoltaics in Italy
Italy is among the five most advanced countries in Europe, ranking fourth in 2025 alongside countries such as Spain and France. The nation currently operates over one million photovoltaic systems, with especially high adoption rates in the Lombardy and Veneto regions.
Moreover, in 2024 Italy re-entered the global top ten markets for solar capacity. These ten markets, led by China with 55% of the total, collectively account for approximately 81% of solar installations worldwide.
Regarding provinces with the highest photovoltaic energy production, in 2023 only two Italian provinces, Brindisi and Lecce, ranked among the top fifteen in the European Union. In 2025, Rome confirmed its position as the most active area in Italy for new photovoltaic installations. The capital city area was followed by Padua and Udine. Furthermore, Pordenone stands out for the highest number of new systems installed per capita, ahead of Cosenza. La Spezia, on the other hand, recorded the highest growth rate for photovoltaics, approximately 70%, among Italian provinces.
Italian regions are showing strong commitment in this field. A notable example is the Marche region, which has initiated a complete mapping of all publicly owned buildings to identify those suitable for photovoltaic installations, with the aim of creating a true Regional Energy Community.
What Are the Advantages of Photovoltaics?
Investing in a photovoltaic system means not only reducing electricity bills by producing most of the energy you need, but also making your home more sustainable and independent from the electricity grid, protecting yourself from price increases and power outages. From a real estate perspective, a home with a photovoltaic system gains added value, becoming more attractive on the market to buyers and tenants who prioritise energy efficiency and quality of life.
What Factors Influence Photovoltaic Adoption in Italy?
A study has revealed several factors that affect the adoption of residential photovoltaics:
- Population density: More densely populated areas may have greater potential for photovoltaic adoption.
- Limitation: Roof space may be limited, making installations more challenging in some urban zones.
- Per capita income: A key factor in adoption, with higher incomes facilitating the investment in solar energy.
- Average age of the population: Younger populations are generally more likely to adopt new technologies, including photovoltaics.
- Neighbourhood influence: nearby households’ adoption of PV systems can encourage others to install them. This phenomenon is particularly relevant in central and northern Italy.
Photovoltaics and Foreign Buyers
International buyers are increasingly looking for two key features when purchasing a property: sustainability and technological innovation. They pay particular attention to high energy efficiency and the use of eco-friendly materials. They also care about the overall environmental performance of the building.
In recent years, more and more foreign investors in the Italian real estate market have chosen to install photovoltaic systems. Italy’s excellent climatic conditions support this trend. The country has over 2,000 hours of sunshine per year and particularly high energy production during the spring and summer months.
In a context of rising electricity costs, photovoltaics not only provide a sustainable and environmentally friendly solution, but also represent a financially advantageous investment over the medium to long term. Moreover, installing solar panels increases the property’s value, making it more competitive on the market.
Currently, market demand is shifting toward energy-efficient properties. This shift makes photovoltaics a strategic asset for both buyers and property owners seeking to increase property value in Italy.
Photovoltaic Incentives in 2026
In 2026, incentives for photovoltaics in Italy are still available but are more selective. They vary depending on the type of property and prioritise primary residences and energy community projects. You can find details of the building bonuses in our dedicated article.
The renovation bonus remains the most widely used option for those looking to install a photovoltaic system and save on electricity bills. However, it is significantly more advantageous for primary residences as it allows recovery of 50% of the expenditure. For second homes and other properties the rate drops to 36%. The deduction is calculated on a maximum of 96,000 euros per property and is returned over 10 years in the form of an IRPEF tax deduction.
However, there are several other interesting opportunities worth exploring.
National Energy Income
Among the most interesting opportunities is the National Energy Income, designed for families with lower incomes. In this case, the government fully covers the cost of a photovoltaic system through a fund managed by the GSE (Energy Services Operator). An eligible household is one with an ISEE (indicator of the economic condition of the family) up to 15,000 euros or 30,000 euros for families with at least four children. The system, which must be installed on the primary residence, should have a capacity between 2 and 6 kW. The energy produced is used directly by the family. Any excess is sold to the GSE to fund new installations and assist other citizens, creating a self-sustaining solidarity mechanism.
Renewable Energy Communities
Furthermore, people are increasingly paying attention to Renewable Energy Communities (CER). This model is transforming the way people produce and consume energy. Here, you are no longer just a consumer, but a “prosumer”, both producer and consumer. You can generate and share energy with other nearby participants, all connected to the same primary substation. Citizens, businesses, local authorities, and associations can join forces to create a community and benefit from incentives for shared energy.
In summary, there are fewer easily accessible bonuses than in the past and more targeted opportunities, especially for people living in the property or choosing collective solutions.
Investing in Solar Energy
Investing in a solar power system today means much more than just lowering your energy bills: it’s a concrete step toward sustainability, energy independence, and protection against rising electricity costs. It also increases the value of your property, making it more attractive on the market. Thanks to targeted incentives and new opportunities like Renewable Energy Communities, solar energy is also a smart economic and social choice, delivering long-lasting benefits for your family, community, and the environment.