Renewable Energy for Heating and Cooling and Small Interventions Increasing Energy Efficiency Support Scheme (Conto Termico 2.0)

Conto Termico 2.0, in force since May 31st 2016, strengthens and simplifies the support mechanism already introduced by the MD December 28th 2012, which encourages measures to increase energy efficiency and the production of thermal energy from RE. The total annual budget is up to 900 million euro of which 200 for public administrations projects and 700 million euro for the private initiatives. Once this cap will be reached, program will be closed for new applications. If not reached, cap will be modified after 2 years since entering of the scheme into force. The mechanism responsible for the management and disbursement of incentives is GSE.

As the "old version" also the Conto Termico 2.0 provides financial incentives on the capital costs of the initiatives that are paid on yearly basis for a variable period of 2 to 5 years depending on type of improvement implemented, technology applied and its size.

Two categories of projects are eligible to benefit from the scheme:

• A) energy efficiency improvements in an existing buildings and
• B) small-scale projects concerning systems producing thermal energy from renewable and high-efficiency system.

Technologies eligible:

• A.1) isolations of opaque surfaces, replacement of transparent closures, installation of system shielding and shading and replacement of generators with appliances condensation;
• B.1) heat pumps, biomass boilers, heaters and fireplaces, solar thermal systems, including those based on the solar cooling technology.

Public administration entities are eligible to benefit from incentives for both types of projects. Conto Termico is open to private entities only for small-scale projects concerning systems to produce thermal energy from renewables and high-efficiency systems (2nd category).

The main changes introduced by the new mechanism are the follows:

• simplification of the procedures for the PA to access to the incentives;
• introduction of new energy efficiency measures;
• expansion of the range of allowed subjects (also the so-called public “in-house societies” and social cooperatives);
• allowed, only for the public administrations (and for the ESCO working for them), the cumulation with other public funds up to 100% of the investment value;
• increase the size of eligible systems;
• simplification of the procedure with direct access for some equipment;
• increase of the threshold for dispensing the total incentive in one step up to 5,000 €;
• reduction of the time for the incentives given in one step: from six to two months.