Renewable Energy Communities - incentives and subsidies
Renewable Energy Communities - incentives and subsidies
RENEWABLE ENERGY COMMUNITY INCENTIVE TARIFF
BENEFICIARIES
ELIGIBLE INTERVENTIONS FOR INCENTIVE TARIFFS
The incentives apply to renewable energy plants, including upgrades, included within the configurations identified above in compliance with the following requirements:
- (a) the maximum rated output of the individual plant, or of the upgrading operation, does not exceed 1 MW;
- (b) CACERs that access the incentives under this Title shall be implemented in compliance with the conditions set forth in Articles 30 and 31 of Legislative Decree No. 199 of 2021 and shall operate, in interaction with the energy system, in accordance with the modalities identified in Article 32 of the same Legislative Decree;
- (c) the Renewable Energy Communities are already duly established at the date of entry into operation of the plants qualifying for the benefit, and provide, in the case of companies, that their participation as partners or members is permitted only for SMEs;
- (d) production plants and withdrawal points that are part of CACERs are connected to the distribution network via connection points forming part of the area underlying the same primary cabin (interactive map of primary cabins) without prejudice to the provisions for minor islands in Article 32(8)(e) of Legislative Decree No. 199 of 2021;
- e) the plants meet the performance and environmental protection requirements, including the sustainability criteria set out in Annex 3, which are also necessary in order to comply with the "Do No Significant Harm" (DNSH) principle and the construction requirements set out in the operating rules in Article 11 of this decree;
- (f) the investment contributes to the achievement of the climate objectives set out in Annex VI to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Facility for Recovery and Resilience;
- g) CACERs shall ensure, by means of an explicit statutory provision, a private agreement, or, in the case of individual self-consumption, a declaration in lieu of affidavit, that any amount of the premium tariff in excess of that determined by application of the shared energy quota threshold value expressed as a percentage set forth in Annex 1 shall be allocated only to consumers other than companies and/or used for social purposes having an impact on the territories where the sharing plants are located; the CACERs shall also ensure full, adequate and prior information to all final consumers, whether they are members or self-consumers acting collectively as part of the same configurations, on the benefits accruing to them from access to the incentive tariff referred to in Article 4;
- (h) the facilities comply with the requirements of Article 8(1)(a) of Legislative Decree No. 199 of 2021.
Access to incentive tariffs is not permitted:
- (a) companies in difficulty as defined in the Communication from the Commission Guidelines on State aid for rescuing and restructuring non-financial firms in difficulty, published in the Official Journal of the European Union C 249 of 31 July 2014;
- (b) applicants for which one of the grounds for exclusion set out in Articles 94 to 98 of Legislative Decree No. 36 of 31 March 2023 applies;
- (c) applicants who are subject to the prohibition, disqualification or suspension grounds referred to in Article 67 of Legislative Decree No 159 of 6 September 2011;
- (d) companies against which a recovery order is pending as a result of a previous decision of the European Commission declaring the incentives received illegal and incompatible with the internal market;
- (e) hydrogen projects resulting in greenhouse gas emissions exceeding 3 tCO2eq/t H2.
INCENTIVE TARIFF
Without prejudice to the provisions of Paragraph 2, the share of energy shared within the CACERs through the portion of the distribution network underlying the same primary cabin is attributed an incentive tariff in the form of a premium tariff calculated as follows
Premium tariff expressed in €/MWh
a) for installations with a capacity > 600 kW
TIP: 60 + max (0; 180 - Pcs)
Where Pz is the hourly zonal price of electricity.
The premium tariff may not exceed 100 €/MWh.
(b) for installations of power > 200 kW and ≤600 kW
TIP: 70 + max (0; 180 - Pcs)
Where Pz is the hourly zonal price of electricity.
The premium tariff may not exceed 110 €/MWh.
c) For installations with an output ≤ 200 kW
TIP: 80 + max (0; 180 - Pcs)
Where Pz is the hourly zonal price of electricity.
The premium tariff may not exceed 120 €/MWh
The entire energy produced and fed into the grid remains at the producer's disposal, and may be sold to the GSE in the manner set out in Article 13(3) of Legislative Decree No. 387 of 2003.
The period of entitlement to the incentive tariff starts from the date of commercial operation of the plant and is equal to 20 years, considered net of any stoppages resulting from force majeure or stoppages carried out for the realisation of modernisation and upgrading works that are not incentivised.
For upgrades of existing plants, the incentives under this Title apply only to the new section of the plant attributable to the upgrade, within the limit of what is provided for in Article 3(2)(a).
ARERA defines, pursuant to Article 5, paragraph 1, letter e), of Legislative Decree No. 199 of 2021, the modalities by which the resources necessary for the disbursement of the incentive tariffs under Title II are covered by the electricity tariff components.
The GSE provides for the payment of the incentive tariffs referred to in this Title jointly with the valuation fee identified by ARERA under Resolution 727/2022/R/EEL.
The tariff payable remains fixed for the entire period of entitlement to the incentives.
Correction of premium tariff for photovoltaic systems
For photovoltaic systems, the premium tariff, calculated in the manner described in the first paragraph, is adjusted to take account of different levels of insolation:
- Central regions (Lazio, Marche, Tuscany, Umbria, Abruzzo) + 4 €/MWh
- Northern regions (Emilia-Romagna, Friuli-Venezia Giulia, Liguria, Lombardy, Piedmont, Trentino-Alto Adige, Valle d'Aosta, Veneto) 10 €/MWh
Application of deductions in the case of capital contributions
In cases where a capital grant is to be made, as regulated in Article 6(1) of this Decree, the rate payable is determined as follows:
TIP Capital Account = Tip * (1 - F)
where F is a parameter that, in most cases, varies linearly between 0, in the case of no capital contribution, and a value of 0.50, in the case of a capital contribution equal to 40% of the investment.
This reduction factor does not apply in relation to electricity shared by withdrawal points in the ownership of territorial authorities and local authorities, religious bodies, third sector bodies and environmental protection bodies
CUMULABILITY
The incentives provided for under this Title may be cumulated with capital grants up to a maximum of 40 per cent, in compliance with the principle of prohibition of double financing laid down in Article 9 of Regulation (EU) 241/2021. In this case, the incentive is reduced in accordance with the modalities set out in Annex 1.
Notwithstanding the provisions of Article 16-bis, paragraph 1, letter h), of the Consolidated Act set forth in Presidential Decree No. 917 of 22 December 1986, for the purposes of the provisions of Article 119, paragraph 7, of Decree-Law No. 34 of 19 May 2020, converted into Law No. 77 of 17 July 2020 the incentive tariffs do not apply to the shared electricity underlying the share of the power of photovoltaic systems that has access to the Superbonus, for which the right to the contribution referred to in Article 32, paragraph 3, letter a) of Legislative Decree No. 199 of 2021, as well as the obligation to sell it in accordance with the provisions of Article 119, paragraph 7, of the aforesaid decree, remains unaffected.
LOST FUNDS FOR RENEWABLE ENERGY COMMUNITIES
BENEFICIARIES
The beneficiaries of the PNRR measure referred to in Article 14(1)(e) of Legislative Decree No. 199 of 2021 are the renewable energy communities and collective self-consumption systems from renewable energy sources located in municipalities with a population of less than 5,000 inhabitants.
PERMITTED INTERVENTIONS
Expenditure incurred on renewable energy installations, including upgrades, included in the configurations referred to in paragraph 1 may be eligible for the capital contribution provided for in this Title if the following conditions are met:
- (a) fulfilment of the requirements set out in points (a) to (g) of Article 3(2);
- (b) non-existence of the cases referred to in Article 3(3);
- (c) the start of the works is subsequent to the date of submission of the application for aid by the beneficiary;
- (d) possession of the permit for the construction and operation of the plant, where applicable;
- (e) possession of the definitively accepted grid connection quotation, where applicable.
The installations admitted to the contribution under this Title must come into operation within eighteen months from the date of admission to the contribution and in any case no later than 30 June 2026.
Access to grants is through the submission of the over-the-counter applications exclusively via www.gse.it.
ELIGIBLE COSTS
The following expenses are eligible:
- i. construction of renewable energy plants (e.g. components, inverters, mounting structures, electrical components, etc.)
- ii. supply and installation of storage systems;
- iii. purchase and installation of machinery, plant and hardware and software equipment, including the costs of their installation and commissioning;
- iv. building works strictly necessary for the realisation of the intervention;
- v. connection to the national electricity grid;
- vi. pre-feasibility studies and expenses necessary for preliminary activities, including expenses necessary to set up configurations;
- vii. design, geological and geotechnical investigations, the burden of which is borne by the designer for the design definition of the work;
- viii. works management, safety;
- ix. technical and/or technical-administrative testing, consultancy and/or support essential to the implementation of the project.
Expenditures under (vi) to (ix) are eligible for financing up to a maximum of 10% of the amount eligible for financing.
The above expenditure is eligible up to the maximum reference investment cost of
- 1,500 €/kW, for systems up to 20 kW;
- 1,200 €/kW, for installations with an output of more than 20 kW and up to 200 kW;
- 1,100 €/kW for power above 200 kW and up to 600 kW;
- 1,050 €/kW, for installations with an output of more than 600 kW and up to 1,000 kW.
Value added tax (VAT) is not eligible for subsidies, unless it is
recoverable under VAT legislation.
DISBURSEMENT OF THE CONTRIBUTION
The GSE disburses the contribution due, according to criteria and procedures defined in the operating rules of
referred to in Article 11, in accordance with the following principles:
- (a) at the express request of the beneficiaries, an advance of up to 10% of the contribution in accordance with the terms and conditions and the guarantees identified in the operating rules referred to in Article 11;
- (b) as an alternative to (a) above, on the basis of the expenses actually incurred and documented, in a single instalment or in several instalments, in consideration of the amounts to be paid and the capacity of the plants to be incentivised and in relation to the progress of the works;
- (c) in any case, the final instalments shall be disbursed on the basis of the presentation of the request for final reimbursement by the beneficiary, including the documentation proving the completion of the subsidised projects, and after the signing of the incentive contract for the disbursement of the incentives under Title II.
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