Over the years, the Italian government has approved various government-funded schemes for improving the energy efficiency of existing buildings, most of which are currently still in force. The most common and widely used scheme is the so-called “Conto Termico.”

The scheme is open to both private individuals and public entities.

Private individuals can use the incentive scheme to implement small projects regarding plants producing heat from renewable sources and from high-efficiency systems (e.g., condensing boilers, heat pumps, biomass boilers/stoves/fireplaces and solar heating systems combined with solar cooling technology for the production of cold).

In addition to the above, undertakings and public entities can also use the incentive scheme for projects improving the insulation efficiency of the envelope of existing buildings, such as insulating walls and roofs, replacing windows and installing solar screening.

Moreover, the incentive scheme finances energy performance certifications and energy performance evaluations as requisites for the implementation of the aforementioned projects.

For projects improving insulation efficiency, the incentive consists of a contribution equal to 40% of the eligible expenditure. Each type of improvement, such as replacing windows, is associated with a maximum eligible expenditure.

The sum of the maximum eligible expenditure, such as those associated with replacing windows and those associated with insulating walls and roofs, cannot exceed the maximum incentive payable.

For small projects regarding plants producing heat from renewable sources and from high-efficiency systems, the incentive is calculated based on the quantity of energy produced and the environmental sustainability of relevant technology.

The Conto Termico allocates EUR 400 million yearly for public entities’ projects and EUR 500 million yearly for private individuals’ projects.

Another government-funded incentive to promote energy efficiency is the white certificate (certificati bianchi) mechanism. Introduced in 2005, the mechanism consists of tradable securities issued by the Energy Market Manager certifying the achievement of end-use energy savings through energy efficiency measures and projects. One certificate is equal to one tonne of oil equivalent saved. The certificates can be issued in favor of energy distributors, energy service companies (ESCO), public and private entities that have implemented a certified energy management system (e.g., ISO 50001), and public and private entities that have appointed a certified expert energy manager. However, entities that do not meet the above-mentioned requirements can still access the mechanism through eligible entities (e.g., an ESCO), which will submit the relevant application.

Lastly, with reference to public buildings, there is the Central Public Administration Energy Requalification Program (PREPAC), aimed at improving the energy efficiency of public buildings by at least 3% each year. The incentive can cover up to 100% of the planned expense, within the limits of the resources available for the relevant year and considering any other cofinancing. Among the interventions that can benefit from the PREPAC incentives, there are replacement of windows, installation of shading systems, replacement of winter air-conditioning systems with condensing boilers, and installation of cogeneration or trigeneration systems. Proposals have to be submitted by 15 July of each year and must relate to (i) buildings owned and used by the public administration and (ii) energy efficiency interventions indicated in the APE or the preliminary diagnosis.