The Chamber of Deputies has definitively approved the conversion bill for Decree-Law 175/2025, a regulation introducing urgent measures under the Transizione 5.0 Plan and redefining the framework for renewable energy projects in Italy. The text, modified during parliamentary review, establishes new criteria regarding tax incentives and the identification of suitable areas for renewable installations.

The decree is structured around three main areas, with particular emphasis on tax credits and territorial planning for renewable projects.

Transizione 5.0 Tax Credits

The decree provides key clarifications on the functioning of the Transizione 5.0 tax credits, establishing strict deadlines and rules for accessing these incentives. Companies cannot combine the Transizione 5.0 credit with other tax benefits for the same assets, requiring them to choose one option. The Gestore dei Servizi Energetici (GSE) oversees the certifications related to these credits, and a financial allocation of €250 million for 2025 has been set to cover the associated costs. These measures aim to provide clarity for beneficiaries and ensure coordinated and controlled application of incentives.

Suitable areas for renewable energy: The core of the decree

A central element of DL 175/2025 is the redefinition of suitable areas for renewable energy installations, now incorporated into the Renewables Unified Text (d.lgs. 190/2024). The decree updates the framework for agrivoltaic installations, specifying the conditions under which agricultural activity can coexist with solar generation on the same land. It harmonizes previously fragmented regulations, providing clear criteria on permits and compatibility with agricultural use.

It also defines suitable areas on land and at sea, taking into account environmental factors, territorial planning, and land or maritime use. This clarity reduces uncertainty for developers and investors, facilitating project planning and site selection.

The decree introduces simplified administrative procedures for projects located in designated areas, accelerating approvals and reducing bureaucratic complexity. It regulates installations in protected areas, including UNESCO sites, establishing clear rules for interventions that balance renewable development with environmental and cultural preservation.

A digital platform will allow developers to consult all suitable and priority areas online, streamlining feasibility studies and investment planning. Additionally, the decree sets regional renewable energy capacity targets aligned with the National Integrated Energy and Climate Plan (PNIEC), enabling balanced development across regions and preventing excessive concentration of projects in specific locations.

The decree also includes a transitional clause, specifying that the new rules do not apply to projects already under review, which will continue to be processed under the previous legislation.

Golden power and strategic sectors

DL 175/2025 amends the “golden power” rules, expanding situations in which the government can intervene in operations considered strategic. This applies to the energy, transport, and communications sectors, particularly when non-EU actors are involved. Authorities may exercise veto powers if there is a risk to public order, national security, or economic and financial stability, protecting strategic assets in acquisitions or control operations.

Sector reaction: Italy solare’s perspective

The association Italia Solare welcomed certain aspects, such as the protection of ongoing authorization procedures and the recognition of areas adjacent to all industrial facilities as eligible, not only those subject to integrated environmental authorization. However, the organization expressed concern over the requirement to include agrivoltaic installations within eligible agricultural areas, describing it as ambiguous and potentially restrictive for agrivoltaic development.

Italia Solare also criticized that simplified procedures cannot be applied when connection infrastructure, even underground, falls outside the perimeter of suitable areas, which could undermine the zoning system. Another contentious point is the maintenance of large exclusion zones around cultural and landscape heritage sites, which some regions consider incompatible with renewable energy targets.

“Families and businesses need cheap energy, and photovoltaics is the most competitive technology,” said Paolo Rocco Viscontini, president of Italia Solare. He lamented the lack of a clear and balanced strategy to reconcile renewable energy deployment, landscape protection, and agricultural activity. Italia Solare announced that in 2026 it will focus on reforming the rules on suitable areas, simplifying authorization procedures—especially for rooftop installations—and updating grid connection regulations.