Description
The investment support scheme offers an exciting non-repayable contribution to boost renewable energy projects in smaller communities across Italy. Aimed at municipalities with fewer than 5,000 residents, it provides up to 40% of the investment costs for establishing Energy Communities. With €2.2 billion in funding from the National Recovery and Resilience Plan (PNRR), this initiative targets projects that will collectively generate at least 2 GW of clean energy by June 30, 2026. Plus, this support can be combined with additional rate-based incentives, making it a powerful opportunity for communities to lead the green energy transition.
level of support
National
type of funding
Grants
Funding amount
An investment grant of up to 40% of eligible costs financed through the RRF (total budget of €2.2bn).
Eligibility criteria
The investment support scheme covers a range of expenses related to renewable energy projects. Eligible costs include the construction of renewable energy systems, the supply and installation of energy storage, procurement and setup of machinery, systems, and digital equipment (hardware and software), as well as any building modifications necessary for the project. Additionally, expenses for connection to the national electricity grid, pre-feasibility studies, and other preparatory activities are eligible.
This scheme supports both new renewable energy installations and the expansion of existing ones. It is tailored for small projects with capacities up to 1 MW, targeting municipalities with fewer than 5,000 residents. To qualify for funding through the Recovery and Resilience Facility (RRF), projects must become operational by 30 June 2026.
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 Italian municipalities are already working on feasibility studies. The REC decree is in fact also based on the recognition of a non-repayable subsidy for the territories of municipalities with less than 5,000 inhabitants, which can cover up to 40 percent of the investments made by the founders of an energy community. The funds for financing the subsidy come from the PNRR in the amount of 2.2 billion euros. The total capacity that can be subsidized up to mid-2026 is 2 GW. Additional advantage: The subsidy can be combined with the tariff incentive.
Expert Opinion
One of the core benefits of this incentive is its focus on small municipalities (with fewer than 5,000 residents), with €2.2 billion in dedicated funding to encourage community-led renewable energy projects. This targeted support is especially important for Italy’s energy landscape, as it provides underserved areas with the resources needed to develop Renewable Energy Communities (RECs) and Self-Consumption Schemes (SCSs).
