Do feed-in tariffs drive PV cost or viceversa?

A survey of the PV market in Italy was done studying a number of installations of different sizes whose economic data were known and assessed. The Italian market has experienced a boom in the PV market after the first mechanism of feed-in tariffs was promoted in 2005. The variations of the tariff structure in the following years have caused significant changes in the market structure in terms of average size and technical characteristics of installed plants. However, an Italian PV industry was not stimulated by the incentives and only companies involved in installation and maintenance were created. At the same time, the cost of the PV plants components, design and commissioning have followed quite a particular trend, which is more determined by the tariffs than by the market development and structure. It is quite clear that the costs of PV plants component are not driven by the amount of installations but by the tariffs, with a trend that follows the decreases in the incentives and not the global installed power. It is therefore very important to study the right tariff mechanisms and benefits to avoid financial disturbances on the market and to promote a real competitive market instead of a simple financial operation under a fake facade of green economy. (C) 2014 Elsevier Ltd. All rights reserved.