Description
The Italian State aid scheme of EUR 5.7 billion, facilitated through the Recovery and Resilience Facility, aims to bolster renewable energy communities and self-consumers. The scheme supports the construction of new renewable energy production plants as well as the expansion of existing plants with a capacity less or equal to 1 MW.
The scheme consists of: • A premium tariff on the quantity of electricity consumed by self-consumers and renewable energy communities, paid over a 20-year period. This measure, with a total budget of EUR 3.5 billion, is financed through a levy on the electricity bill of all consumers. • An investment grant up to 40% of eligible costs, for a total budget of EUR 2.2 billion financed through the Recovery and Resilience Facility. Eligible projects should be operational before 30 June 2026 and located in municipalities with less than 5.000 inhabitants
level of support
National
type of funding
Grants, Subsidies
Funding amount
Total budget of €5.7 billion, facilitated through the Recovery and Resilience Facility. An investment grant of up to 40% of eligible costs financed through the RRF (total budget of €2.2bn). 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
An investment grant scheme tailored for community energy projects targeting municipalities with fewer than 5,000 residents. Meanwhile, a premium tariff is available nationwide for renewable energy communities, collective self-consumption systems using renewable sources, and individual remote renewable energy self-consumption systems that utilize the electricity distribution network.
Application Process and Timeline
Italian energy agency Gestore dei Servizi Energetici (GSE) has published the operating rules for energy communities. The new rules describe how project developers can secure access to the rebates offered by the Italian government for the construction of energy communities under the National Recovery and Resilience Plan (PNNR), while also explaining how these incentives can be added with the feed-in tariffs being granted to these communities.
Evidence Of Success
Many Energy Communities (RECs) in Italy are actively working to meet the criteria required to benefit from the Italian state aid scheme of EUR 5.7 billion, facilitated through the Recovery and Resilience Facility.
Expert Opinion
The Italian State aid scheme of EUR 5.7 billion, funded by the Recovery and Resilience Facility, represents a transformative incentive for renewable energy communities (RECs) and self-consumers in Italy. This scheme addresses key financial and structural barriers to renewable energy development in small and rural communities, positioning it as a potential game-changer in Italy's transition toward decentralized, community-based energy solutions.
