While the Italian government has not yet finalized new PV feed-in tariffs, the following principles are almost solid: tariffs will be cut each month to reach a cumulative reduction of 45% at the end of 2011, new rates will take effect from September 2011, subsidies will be available for a total installation capacity of up to 1.3-1.4GWp, and PV systems made of PV modules produced in Europe will be subsidized 5-10% higher than general rates, according to industry sources.

The controversial new solar subsidy program for Italy was supposed to be announced on April 28. The delay was due to unresolved conflicts between Environment Minister Stefania Prestigiacomo and Industry Minister Paolo Romani. The impact of the delay have been stalling the growth of the solar market, added industry sources. Additional to subsidy cuts, the new incentive program is likely to set a 5-10% additional subsidy for solar modules produced in Europe. This is seen as an "protection" of European module makers against their Asian counterparts which have been succeeding in increasing market share due to lower labor costs.

It is also unlikely for the backlog in Europe to be resolved if the rumored capped system for Italy takes place. According to industry observers, the subsidy cap for solar systems will be around 1.2-1.3GW, which will likely to include the current systems waiting for grid connections. If these systems are also included, the current backlog problem in Europe will not be solved quickly and will continue to dampen demand.