Legislation in Italy

  • Legislation in Italy

    Italy’s 2020 target is to save 20 Mtoe through energy efficiency, which would cut CO2 atmospheric emissions by around 55 million tonnes annually. Specific steps have been taken and financial supports are in place (“Conto Termico” tax breaks and Energy Saving Certificates (TEEs)) to promote energy saving across all sectors.
  • Energy Saving Certificates

    The current situation

    Energy Saving Certificates (TEEs) are negotiable assets that certify energy savings achieved by carrying out energy efficiency works. One certificate equates to a saving of one tonne of oil equivalent (1 toe).

    The Energy Saving Certificate system was introduced by theMinisterial Decree of 20/07/2004and required electricity and natural gas suppliers to achieve defined energy saving targets, which are set and updated each year.

    Following publication of  Decree 28/12/2012, which “obligated” the electricity and gas suppliers of 50,000 final customers to hit imposed energy saving targets, other organisations were able to access this system: non-obligated suppliers, energy services companies and other companies that have an Energy Manager or an ISO 50001 certified energy management system.


    The Energy Saving Certificates system was introduced to Italian law byMinisterial Decree 20/07/2004.

    Amendments and introduction of the mechanism bydecree 21/12/2007.

    Decree 05/09/2011 established the eligibility conditions and procedures for high-yield cogeneration plants.

    Decree 28/12/2012 set national targets for energy savings by gas and electricity suppliers. It also introduced new subjects eligible for the Energy Saving Certificate mechanism.

    Management and valuation of the Energy Saving Certificates managed by theAEEG were transferred to theGSE.

  • Other financial support systems

    Tax deduction

    The “65% tax deduction for energy renovation” or “ecobonus” was introduced by the Italian government's scheme, subtitled “urgent measures to meet EU obligations on energy provision for buildings”.

    Under the scheme, energy efficiency or renovation work on buildings are 65% tax deductible. Originally planned to run only until 31 December, 2013 it was extended until 31 December, 2016.

    Anyone paying personal or corporate income tax was eligible, whether or not they were an Italian resident. Other potential beneficiaries of the tax deduction are individuals, legal entities and operators who are not liable for corporate income tax and who bear the cost of energy renovation works.

    Conto Termico

    Ministerial Decree 28/12/2012setting up the “Conto Termico” defines the support mechanism implemented by Decree 28 of 03/03/2011  to encourage small-scale jobs that increase energy efficiency and reduce energy consumption.

    Rather than a tax deduction this is a direct grant to the applicant from GSE, the Italian state energy management company. GSE is responsible for setting up and running the scheme, including paying grants to beneficiaries.

    The Conto Termico was originally available until 30 May, 2016. Version 2 was launched on 31 May, 2016 by Ministerial Decree 16/02/2016..

    Tiers of government, individuals, condominiums and anyone paying tax are eligible for these grants.

    Note that in Italy you cannot apply for more than one of the financial support schemes cited above.

© 2018 ON5