Italy’s installed energy storage capacity exceeded 18 GWh in the first quarter of 2026, with a growing shift towards large-scale systems while residential installations show signs of slowdown, according to analysis by Italia Solare based on Terna’s Gaudì data.
As of 31 March 2026, around 919,000 electrochemical storage systems were connected to the grid, representing a total capacity of 18.8 GWh and a combined power of 7.73 GW. During the first three months of the year, an additional 802 MWh of capacity was connected, including 454 MWh paired with photovoltaic systems and 349 MWh from stand-alone installations.
Cumulatively, more than 11.4 GWh of storage capacity is linked to solar PV systems, underscoring the central role of distributed generation combined with storage. Most of this capacity comes from small-scale systems: 59% falls within the 6–20 kW range, while 36% is below 6 kW. These installations, largely deployed in previous years, continue to help reduce electricity bills for system owners, although they remain underutilised within broader grid management mechanisms.
However, quarterly data point to a cooling in new installations associated with PV systems. Compared to the previous quarter, the first quarter of 2026 saw a 9% drop in newly connected capacity, a 22% decline in installed power and a 1% decrease in the number of systems.
This trend confirms a stabilisation phase in the residential segment (below 20 kW), which has hovered around 350–400 MWh per quarter since 2025. After 354 MWh in Q3 2025 and 363 MWh in Q4 2025, residential installations remained steady at 363 MWh in Q1 2026. The commercial and industrial (C&I) segment, covering systems above 20 kW, recorded modest growth with 91 MWh connected in Q1 2026—up from 54 MWh in the same period of 2025, but down from 130 MWh in the final quarter of last year.
In contrast, stand-alone storage continues to expand. Five new systems were connected during the quarter, adding 349 MWh of capacity and 93 MW of power, highlighting the increasing relevance of utility-scale projects.
After years of rapid expansion driven by incentives, the Italian storage market is now entering a new phase. Large-scale and stand-alone systems are gaining prominence, playing a key role in ensuring grid flexibility, security and the integration of renewable energy sources.
“The current phase of the Italian electricity market favours utility-scale storage directly supporting system balancing through mechanisms such as the capacity market and MACSE,” said Fabio Zanellini, coordinator of Italia Solare’s storage working group. He noted that residential and C&I storage must increasingly rely on self-consumption benefits and more specific opportunities, including experimental local flexibility services.
Geographically, northern regions continue to dominate the deployment of storage systems linked to PV. Lombardy led in Q1 2026 with around 69 MWh of newly installed capacity, followed by Veneto (57 MWh) and Emilia-Romagna (42 MWh). Lombardy also recorded the highest number of new systems, with more than 5,000 installations during the quarter.
Looking ahead, the pace of deployment will need to accelerate significantly to meet national targets. According to the 2024 scenario outlook by Terna and Snam, Italy aims to reach approximately 71.5 GWh of installed storage capacity by 2030, with 57.5 GWh expected to come from large-scale systems supported by the capacity market and MACSE mechanisms.
“The current 18 GWh represents a solid foundation, particularly in the small-scale segment, but sustained growth will be essential to ensure system security and adequacy,” said Paolo Rocco Viscontini, president of Italia Solare. He added that boosting the commercial and industrial segment and better valuing existing distributed storage will be key to reducing energy costs and supporting grid management.