Description
The Premium Tariff incentive offers a powerful tariff-based incentive open to all of Italy, from small towns to major cities, encouraging the formation of Renewable Energy Communities (RECs) nationwide. This scheme provides savings on energy costs for communities by offering an incentive tariff on the shared energy they generate, helping reduce overall expenses while promoting renewable use. The program targets a maximum eligible power of 5 GW, available through 31 December 2027, making it an ideal choice for communities aiming to leverage collective energy production for long-term savings and sustainability.
level of support
National
type of funding
Guarantees
Funding amount
A premium tariff on the quantity of electricity consumed by self-consumers and renewable energy communities paid over a 20-year period (total budget of €3.5bn)
Eligibility criteria
Open to Renewable energy communities, Collective self-consumption systems from renewable sources, Individual remote renewable energy self-consumption systems that use the electricity distribution network.
Application Process and Timeline
To apply for Italy’s premium tariff support scheme for renewable self-consumption and Renewable Energy Communities (RECs), begin by identifying an eligible area where your renewable system and associated users connect to the same primary substation. Next, establish the REC as a legal entity, using a Statute or deed of incorporation that emphasizes environmental, economic, and social benefits as core objectives. For additional assurance, you may optionally consult with the Italian energy agency Gestore dei Servizi Energetici (GSE) to verify the project’s eligibility before full implementation. Once this is confirmed, obtain the necessary authorizations for installation and network connection to make your system operational. Finally, submit an application to the Italian energy agency Gestore dei Servizi Energetici (GSE) for the premium tariff incentive, which provides financial support for the electricity consumed by self-consumers and RECs over a 20-year period. This process ensures full compliance and maximizes access to the scheme’s long-term benefits for renewable energy projects.
Evidence Of Success
Many Energy Communities (RECs) in Italy are actively working to meet the criteria needed to access the Premium Tariff incentive.
Expert Opinion
The Premium Tariff incentive is a transformative support mechanism for Renewable Energy Communities (RECs) across Italy. By providing a tariff on the shared energy generated by RECs, this incentive makes renewable energy production and consumption financially advantageous for communities of all sizes—from small rural towns to large metropolitan areas. This scheme is particularly crucial in a country like Italy, where local energy autonomy is both a practical and strategic priority in the transition to clean energy.
