The Italian Government plans to cut incentives for solar power producers by an average of 18% in 2011, an official said.
Italy, Europe's third-biggest solar power producer after Germany and Spain and has experienced a boom in the solar market since the government launched the current support scheme in 2007, which expires this year, according to Reuters.
Italian Industry Ministry undersecretary Stefano Saglia told Reuters that the draft legislation on the new incentives scheme for solar power envisages a cut of 6% every four months in 2011.
No further cuts in solar incentives beyond the 18% reduction next year are expected, according to Saglia.
Earlier, Italy was expected to cut incentives for the solar scheme by up to 25% in 2011 and by 6% a year in 2012 and 2013, according to Reuters.
Currently, the country has a total installed capacity of 1,160MW.