Italy: From the permitting phase to implementation – Opportunities for international EPC contractors in the Italian PV sector

This development creates significant business opportunities for international EPC contractors with experience in delivering complex turnkey projects. However, it is important to be familiar with the relevant regulatory framework and to prepare accordingly.

Health and safety on construction sites – the central role of the EPC

A key issue for EPC contractors in Italy is health and safety. The relevant legislation, Legislative Decree 81/2008, applies to all employers operating in Italy, regardless of their nationality. The obligations that remain directly with the employer (and thus also with the EPC) and cannot be delegated include carrying out a formal risk assessment and appointing a person responsible for the occupational health and safety service (RSPP).

On construction sites where several companies are operating, the client – or, if appointed, the person responsible for the works – must appoint a safety coordinator for the planning phase (CSP) and a safety coordinator for the execution phase (CSE). These are responsible for drawing up, updating and monitoring the safety and coordination plan (PSC). The contractor or EPC contractor is obliged to draw up its own operational safety plan (POS) and to implement the instructions and coordination guidelines issued by the CSE. Responsibility for compliance with health and safety regulations remains entirely with the contractor’s own operational organisation.

International EPC contractors often opt for a model in which many construction works are subcontracted to local subcontractors and the EPC – acting as the general contractor – does not deploy its own personnel on site. However, this model does not reduce the EPC’s responsibility. Rather, the focus of its duties shifts to coordination, inspection and monitoring tasks. The EPC remains obliged to verify the technical and organisational suitability of the subcontractors, to ensure that safety costs are correctly itemised in the contracts, and to coordinate the cooperation between the various companies on site. Liability risks, for example in connection with accidents at work, can also be passed upwards along the entire contractual chain.

The points-based construction site licence

Since October 2024, under Decree-Law No. 19/2024, a so-called points-based construction site licence (patente a crediti) has generally applied in Italy to companies physically operating on construction sites. Its rules of application, as well as the control and sanction mechanisms, were most recently further clarified and, in some respects, tightened in 2025 by the so-called DL Sicurezza (Decree-Law No. 159/2025, converted into Law No. 198/2025).

The licence is issued in digital form by the Ispettorato Nazionale del Lavoro (INL) and operates on a points-based system. It starts with an initial balance of 30 points. In order to be permitted to operate on construction sites, the company must maintain a minimum of 15 points at all times. Points are deducted in the event of established breaches of labour and safety regulations, whilst it is possible to rebuild the points balance through compliant behaviour and certain preventive measures.

The obligation to hold the licence is expressly linked to a company or self-employed person carrying out physical work on the construction site. Companies that provide exclusively non-operational services – such as purely coordination, management or other activities of a predominantly intellectual nature – are therefore not subject to the licensing requirement, provided they do not themselves carry out any operational work on the construction site.

However, it is particularly relevant for international EPC contractors that the new regulation does not result in any reduction of responsibility within the supply chain. Even if the EPC acts as a general contractor without its own site personnel and is therefore not itself obliged to hold the ‘patente a crediti’, it remains legally bound to ensure, prior to the commencement of works, that all subcontractors and self-employed contractors deployed on the construction site hold either a valid construction site licence with at least 15 points or an equivalent qualification. In particular, an SOA qualification certificate of Class III or higher is considered such a substitute.

Failure to carry out this check constitutes a separate breach and may be punished with an administrative penalty.

Environmental and recycling obligations for photovoltaic modules

Environmental law, and in particular the Italian Environmental Code (Legislative Decree 152/2006), is also a central element of project implementation. Construction works generate waste that must be documented, recorded and disposed of in a traceable manner. The EPC contractor is often regarded as the waste producer in this context, even if transport or disposal is carried out by third parties.

A particular issue concerns photovoltaic modules. Companies that import PV modules into Italy from abroad as contractors under a works contract are legally regarded as manufacturers of electrical and electronic equipment. They are therefore obliged to register with the national WEEE system, join a take-back consortium and pay the relevant environmental contributions.

These obligations arise even before the plant is commissioned and should be integrated into the project preparation at an early stage. In the case of revamping and repowering projects, it is also important that the disposal of old modules is clearly regulated between the operator, the EPC contractor and, where applicable, the O&M service provider.

Permits and the contractor’s obligation to carry out inspections

The legal framework for the authorisation of the construction and operation of PV systems was most recently further harmonised by the Testo Unico Rinnovabili (Decree Law 190/2024). Depending on the size, location and type of PV system (ground-mounted systems, agrivoltaics, rooftop systems, etc.), different approval procedures apply, ranging from free construction (edilizia libera) to the certified notice of commencement of works (SCIA, segnalazione certificata di inizio attività) to the well-known single authorisation (Autorizzazione Unica), which is issued in a centralised procedure by the relevant competent authority – the region or the Ministry of Economy.

From the perspective of a contractor in a construction services agreement, a principle developed through case law in Italian construction law is relevant: the contractor has an independent duty to verify the existence, validity, and scope of the required permits before starting construction work. If construction work is carried out without a valid permit or in significant deviation from it, this can lead to independent criminal and administrative liability for the EPC contractor as well – regardless of the project owner’s responsibility.

Contractual liability and European framework conditions

As the main contractor, the EPC is responsible to the client for the proper execution of the works, including defects attributable to subcontractors. Italian civil law provides for liability for ordinary defects – for which, pursuant to Article 1667 of the Italian Civil Code, a liability period of 2 years from acceptance applies – as well as a stricter liability regime for serious structural defects, which can be invoked for up to 10 years from acceptance.

In parallel, EPC contracts in the photovoltaic sector provide for specific performance and availability guarantees, which are verified during the provisional and final acceptance (PAC and FAC). These contractual performance guarantees constitute a central component of international EPC standards and operate in addition to statutory liability for defects, without replacing it.

In addition to the contractor’s civil liability, Legislative Decree No. 276/2003 imposes joint and several liability for employees’ wages and social security contributions throughout the contractual chain. This liability applies for a period of two years from the termination of the relevant contractual relationship and is addressed in practice through the careful selection of subcontractors, ongoing compliance checks and contractual recourse clauses.

European regulations such as the Carbon Border Adjustment Mechanism (CBAM), which will be fully applicable from the start of 2026, are also becoming increasingly relevant. EPC companies sourcing steel or aluminium-containing components from non-EU countries must fulfil the relevant reporting and documentation obligations and also ensure these requirements are contractually secured throughout the supply chain.

Conclusion

The Italian photovoltaic market currently offers international EPC contractors a highly favourable environment. The combination of a growing number of approved new construction projects and additional impetus in the areas of revamping and repowering is creating many business opportunities in terms of renewable energy construction contracts. At the same time, the regulatory framework is demanding and requires careful legal and organisational preparation.

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