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Good Practice > Financing instruments > Tax reduction for energy efficiency retrofitting

Tax reduction for energy efficiency retrofitting

Region: Friuli Venezia Giulia, Italy
Implemented on: National level
Target group: Private building owners (grant recipients)

Summary:

The Italian government allow for a tax reduction of 55% in those who carry out energy retrofit of existing buildings. The reduction is fixed according to the type of operation performed within maximum limits ranging from € 30,000 and € 100,000. In detail, this can be applied for

  • upgrading the energy efficiency of the building overall:
  • shadowing windows;
  • installation of solar panels for hot water production;
  • Replacement inefficient heating systems with systems with  condensing boilers or, alternatively, heat pumps with high efficiency.

Objectives:

Contribute to the EU’s 20-20-20 targets and objectives of the EU Directive for energy buildings near zero in 2018/2020.

Funding/costs:

  • Costs state budget: 1,7 billion Euro; costs for the households (about 1,2 billion)
  • Increased productivity: 6,4 billion Euro
  • Total balance for period 2007-2010: 3,4 billion Euro

Results:

  • The objectives in terms of energy savings and savings of CO2 emissions have been achieved.

Lessons learnt:

  • The experience of the tax reduction of 55% is very positive. In Italy it has been extended until the end of June 2013;
  • This strategy can be easily exported to other European countries.
  • Requires a certain capacity for funding by the states, but a positive side-effect is the replacement of black labour.

Details:

English Pdf

Italian Pdf