Italian PV market trend

Expected installations of PV plants in Italy in 2009 should be between 230 and 280 MW.
Our forecast results from the analysis of the announcements made by institutional investors, the collection of rumours from private investors and the potential of the other market segments. The outlined market is about 120 to 150 MW in the Southern Italian Region for the big MW-size PV plants - where a 1.500 kWh yearly production allows for two-figures IRR. Another 110 to 130 should come from industrial building installations (5 to 80 kW) and residential (1 to 5 kW). In our opinion the top market drivers are the rate of interest - now around 6% - and the cost of the installations - still around 6.000 €/kW for an average 20 kW plant. To boost the market above the forecasts the installation cost should be driven below 5.500 €/kW through the reduction in the cost of panels below 3 €/kW - now around 3,2 - and the drawing+permit+installation costs below 0,8 €/kW - now around 1 €/kW.