Policies in Italy

For renewable energy systems, several types of support mechanisms exist, depending on the technology, size and use of the installation. For instance, wind and solar energy technologiesare promoted through tax deductions. The electricity from renewable energy sources fed into the grid can be sold on the free market or to the publicly owned GSE on a guaranteed minimum price (“ritiro dedicato”). In case the price on the free market is higher than the guaranteed minimum price the price difference will be reimbursed. Alternatively, renewable energy prosumers can opt for net-metering (“scambio sul posto”) which provides economical compensation to renewable energy plant operators for the electricity fed into the grid. “Ritiro dedicato” and “scambio sul posto” are not combinable.
National Energy Strategy set the ambitious target of an RES share of 28 % of gross final energy consumption by 2030, comprising a target share of 55 % for electricity (set at 33.5 % in 2015).

• Auction and Registry (FER1 Decree) - The incentives provided in the FER 1 decree are accessible through two types of auctioning systems: auctions for large plants and registers for medium-sized plants
• Feed-in tariff (Ritiro dedicato): Electricity generated from renewable energy sources fed into the grid can be sold on the free market or to the GSE on a guaranteed minimum price.
• Net-Metering (scambio sul posto): A scheme that allows prosumers to feed their access (not used) electricity into the grid, and get compensated for it.
• Tax regulation mechanisms (Reduction in value-added tax): renewable energy generation is promoted through VAT tax deductions.

• The Revenue Agency
• GSE
• MiSE
• ARERA

The development of the installations using renewable energy sources for heating purposes is supported by subsidies (Conto Termico). Heat pumps (aerothermal, geothermal, hydrothermal), biomass, and solar thermal are eligible technologies and the incentive is granted for a period varying between 2 and 5 years. Moreover, a tax regulation mechanism is in place to increase energy efficiency, which includes the promotion of renewable energy sources for heating.
Apart from that, municipalities must include RES technologies in district heating and cooling networks in their development plans. And all new buildings and buildings undergoing major refurbishment must integrate installations generating heating or cooling from renewable energy sources.
The National Energy Strategy set the ambitious target of an RES share of 28% of gross final energy consumption by 2030, with 30% of the target share compromised by thermal energy (19.2 % in 2015).

• Subsidy (Conto termico) - Installing heat pumps, biomass and solar thermal installations for heating purposes is supported through subsidies aimed at the redevelopment of buildings.
• Tax regulation mechanism (Superbonus) - Promotes greater efficiency and the renewable energy sources for heating and cooling, by providing a 110% tax detraction of the expenditure.
• Support of RES-H infrastructure - Municipalities must include RES technologies in district heating and cooling networks in their development plans.
• RES-H building obligations - All new buildings and buildings undergoing major refurbishment must integrate installations generating heating or cooling from renewable energy sources.

• ENEA
• The Revenue Agency
• GSE
• Regional authorities

Support for renewables in the transport sector occurs trough two subsidies and a biofuel quota. The biofuel quota prescribes the share of biofuels that suppliers need to include in their fuel supply to the transport sector. It introduces “Certificates of release for consumption" (‘Certificati di immissione in consumo’ or CIC), to allow authorities to verify implementation. Certificates can be acquired through trade and there is a penalty for fuel suppliers that miss a CIC and therefore the prescribed quota.
Moreover, the decreto biometano, provides a monetary bonus for each CIC that is issued after the production of 5 Gcal of “advanced” biofuel. The amount of subsidy can be increased trough expansion investments. Additionally, an “eco bonus” promotes the acquisition of certain categories of EV by providing an incentive up to €6000.
The National Energy Strategy set the ambitious target of 28 % of RES share in the gross final energy consumption by 2030, comprising a target share of 21 % for transport (6.4 % in 2015). The Italian government has set a 10% target for biofuels in the road transport fuel mix in 2021, up from 9% in 2020. The country also targets a 2% share of advanced biofuels in 2021, increasing to 2.5% in 2022 and 3% in 2023.

• Subsidy (eco bonus) - Vehicle buyers receive incentives if they purchase environmentally friendly vehicles, including electric vehicles.
• Subsidy (decreto biometano) - Producers of advanced biofuels receive a subsidy which can be increased trough expansion investments.
• Biofuel quota (obligo di immisione) - This scheme defines the share of biofuels that suppliers need to include in their fuel supply to the transport sector.

• MiTE
• GSE