The Italian Council of Ministers has allocated €250 million (~$288 million) to support the Transizione 5.0 tax credit program for businesses transitioning to renewable energy sources.

Additionally, €10 million (~$11.5 million) each has been allocated under the program for 2026 and 2027.

Transizione 5.0 supports energy transition projects that improve energy efficiency, digitalize production processes, and involve self-consumption.

However, it emphasizes that companies can claim credit for either the updated Transizione 5.0 tax credit program or the earlier 4.0 tax credit program. Companies that have applied for both tax credits must choose one.

The Council of Ministers also approved extending the application deadline for the Transizione 5.0 tax credit from November 7 to November 27.

For applications received after November 7, if they are incorrect or incomplete, Italy’s energy management agency, Gestore dei servizi energetici (GSE), can request that applicants provide additional information by December 6.

The decree grants GSE supervisory power over experts who issue technical certifications. It can perform technical audits on companies applying for the credit. The decree also allows GSE to cancel the company’s tax-credit reservation and empowers it to recover the annulled tax credits, with interest and penalties.

In July 2025, Italy’s Ministry of Environment and Energy Security announced that it had received nearly 1,500 expressions of interest under the country’s FERX decree, a new mechanism to support solar and wind energy projects.

In April this year, GSE invited bids for the second round of cumulative 1.04 GW agrivoltaics projects. The projects are expected to generate up to 1,300 GWh of electricity per year. They can receive incentives of up to €323.41 million (~$356.07 million).

Last December, GSE allocated 1.5 GW of capacity for agrivoltaic projects in the country’s first dedicated auction. The auction saw significant interest, with 540 projects approved from a pool of 643 bids, totaling over 1.7 GW of capacity.