Running a European solar company? Italy's €250m loan scheme could help

Italian rooftops could become the next great frontier for solar panels. At a time when Italy’s government is taking steps to curb the spread of solar panels on commercial land, the European Investment Bank is launching a €250m initiative to get more households to install them in their homes instead.

The idea is encourage households and families to invest in energy-efficient solutions as Italy strives to cut its carbon footprint.

The new loan scheme from the EIB and Findomestic Banca is offering loans with lower interest rates to Italian families for the installation of energy-efficient equipment and production of solar energy for domestic use.

Marjut Falkstedt, chief executive of the European Investment Fund, which is part of the EIB, said the loan scheme is meant to “open new avenues for Italian families to invest in sustainable solutions.”

“This initiative not only makes financing more accessible but also fosters innovation in energy efficiency and renewable energy at the household level,” Falkstedt says.

Top producer of solar power

Italy is already one of Europe’s top producers of solar power, which generates nearly 12 percent of the country’s electricity production. That’s more than twice the European average, according to Our World in Data (a data organisation run by researchers at the University of Oxford).

The Mediterranean country first saw a first major boom in solar panels off the back of government incentives back in 2005, but the growth has stalled in recent years after those subsidies ended. The current rightwing government even introduced new rules in May that curbed the installation of solar panels on agricultural land.

By appealing directly to households, though, the EIB is hoping to spur a fresh boom in green energy.

"This new initiative is a model that we hope to be able to replicate further in other parts of Italy, helping to promote the energy transition of families and households,” says EIB Vice-President Gelsomina Vigliotti.

Findomestic Banca is part of the BNP Paribas Group in Italy, which has previously launched several other initiatives together with the EIB — including an agreement in July to allocate €400 million to provide new liquidity to Italian companies, including a 25 percent green component.