What the FER X decree is
The FER X decree is a ministerial decree of the Ministry of Environment and Energy Security (MASE) dated 30 December 2024. It supports mature renewable technologies, including photovoltaics, through two-way contracts for difference managed by the GSE.
Access follows two routes: competitive procedures for larger plants and direct access for smaller ones. The specific thresholds, procedures and reference values are set by the decree and by the GSE rules. Investors should rely on the official documents and on their advisors for these details.
How a two-way CfD works
In a two-way contract for difference, the producer sells energy on the market and settles the difference with the counterparty against a reference price. When market prices are below the reference, the producer receives the difference; when they are above, the producer pays it back.
The effect is a more stable revenue profile. The plant is less exposed to falling prices, in exchange for giving up part of the upside when prices are high. For a CfD solar project in Italy this stability is the main source of value from an investor's point of view.
Why FER X matters for bankability
Lenders finance projects on the basis of predictable cash flows. A contract for difference with a public counterparty can reduce price risk and support the financing structure. As a result, investors often assess FER X solar projects as an alternative or complement to other routes to market, such as corporate PPAs or merchant exposure.
The decision is not automatic. Some investors prefer PPAs with industrial buyers, others combine different contracts across a portfolio. The value of FER X for a specific project depends on its characteristics and on the investor's strategy.
How an investor assesses FER X eligibility
When reviewing a project with FER X in mind, investors and their advisors usually check:
- Authorisation status: a valid title is generally required to participate. See permitted solar projects.
- Grid connection: the accepted STMG and the expected connection timing, which must be consistent with the scheme's deadlines.
- Plant characteristics: capacity, technology and configuration, which determine the applicable access route.
- Timeline: whether construction and connection can be completed within the terms set by the rules.
- Other support: possible overlaps with other incentives, for example PNRR support for agrivoltaics.
Pipeline.Solar does not assess eligibility on your behalf. It performs a preliminary screening of project data and makes the documents available after the NDA.
FER X and project valuation
The prospect of a contract for difference affects how a project is valued, but it does not replace the analysis of the project itself. Investors still consider the grid connection cost and timing, the land conditions, irradiation, expected capital expenditure and the robustness of the authorisation. FER X changes the revenue side of the model, not the quality of the underlying asset.
For this reason a teaser never states that a project will obtain a contract. The standard fields describe the project; the assessment of support schemes comes later, on the documents. Our valuation guide lists the factors that drive price discussions.
Which projects are relevant for FER X
FER X is most relevant for projects that are about to be built: RTB projects and late-stage projects that will soon have all their titles. It can also inform the strategy for greenfield co-development, where the investor designs projects with a future participation in mind. Plants already in operation follow the contracts and support schemes under which they were built.
Receive projects to evaluate for FER X
Start via WhatsApp or the investor access form. After the introductory call you receive a personal link to the reserved area to set stages, capacity of the single plant, regions, technologies and structures. If FER X is central to your strategy, mention it during the call. When a compatible project enters the pipeline, the staff sends you a teaser.
Opportunities depend on the projects available at the time. Set your search criteria.
Frequently asked questions
Does every solar project qualify for FER X?
No. Eligibility depends on the requirements of the decree and of the GSE rules, including authorisation status and plant characteristics. It must be verified case by case.
Is FER X the same as the old feed-in tariffs?
No. FER X works through two-way contracts for difference managed by the GSE, a different mechanism from past incentive schemes.
Can a FER X project also sign a PPA?
Combinations of different routes to market are a matter of project structuring and of the scheme rules. Your advisors should assess them on the specific case.