Italy's government has voted to cut incentives to solar projects and other renewable energy projects by approximately 3 billion euros per year, in comparison to the levels that they would have reached under previous arrangements.
Officials opted to make the change because renewable energy incentives were affecting ratepayers' bills more severely than anticipated, according to a Reuters report.
As a result of the decision, solar incentives are expected to be cut by approximately 35%, Leonardo Senni, head of the energy department at the industry ministry, told Reuters. New incentive spending would be capped at 500 million euros per year.
However, Italy has also set a more aggressive goal for total renewable energy procurement, with the expectation that renewables will account for 35% of total electricity demand by 2020.
