Efficacy and Efficiency of Italian Energy Policy: The Case of PV Systems in Greenhouse Farms

Abstract

The production of energy from renewable sources is a form of energy production that has less impact on the environment than the traditional one. For the farmer this new form of production represents an opportunity, especially for the economic benefits that can produce, both in terms of the incentives provided by the public operator and for higher revenues, deriving from the sale of energy back to the grid and/or the savings generated by self-consumed energy, that help to increase the farmer’s income. In this paper, we analyzed a case study of a farm that has realized a grid-connected photovoltaic (PV) system on a greenhouse. In particular, firstly the farm profitability has been estimated and subsequently, in order to assess the efficiency of the energy policy adopted by the Second Conto Energia in Italy, the minimum incentive tariff at which the entrepreneur has an economic advantage to realize a PV system has been determined. Results show that PV system relegates to a marginal role the cultivation of agricultural products compared to energy production and that government PV remuneration policies far outweigh the minimum threshold that makes the investment advantageous.