Price-based mechanisms (Conto Termico)
Updated: 07.02.2019
Author: Jasmin Schwarz
A price-based scheme (Conto Termico) is in place in Italy for small RES-H sources. Heat pumps (aerothermal, geothermal, hydrothermal), biomass and solar thermal are eligible technologies and the incentive is granted for a period varying between 2 and 5 years.
Eligible technologies
- Substitution of existing heating systems with heat pumps combined with sanitary hot water production, along with the installation of heat metering systems in the case of plants with a thermal output higher than 200 kW;
- Substitution of existing heating systems with biomass installations, along with the installation of heat metering systems in the case of plants with a thermal output higher than 200 kW;
- Substitution of existing boilers with heat pump-based boilers
- Installation of solar thermal systems combined with solar cooling systems, for the generation of thermal energy for production purposes or for district heating networks.
| Geothermal energy | Eligible for capacities up to 2000 kW (Art. 2, c.1 n DI 16/02/2016) |
|---|---|
| Aerothermal energy | Eligible for capacities up to 2000 kW (Art. 2, c.1 n DI 16/02/2016) |
| Hydrothermal energy | Eligible for capacities up to 2000 kW (Art. 2, c.1 n DI 16/02/2016) |
| Biomass | Eligible for capacities up to 2000 kW (Art. 2, c.1 n DI 16/02/2016) |
| Solar thermal energy | Eligible for surfaces up to 2500 m2 (Art. 2, c.1 n DI 16/02/2016) |
Amount
Incentives are paid by the GSE in the form of annual rates for a period of 2 or 5 years, or in a single amount, in case that the incentive does not exceed EUR 5,000. The incentive level varies depending on the type of the plant, source, capacity and location of the installation and it is calculated by the formulas given below (Art. 7, Table A, in conjunction with Annex I and II DI 16/02/2016).
| Aerothermal energy | The annual incentive (I) is determined by the following formula: I = Ei . Ci
(Annex II, 2.1.b DI 16/02/2016) |
|---|---|
| Hydrothermal energy | The annual incentive (I) is determined by the following formula: I = Ei . Ci
(Annex II, 2.1.b DI 16/02/2016) |
| Biomass | The annual incentive (I) is determined by the following formula: I = Pn . hr. Ci . Ce
(Annex II, 2.2.a DI 16/02/2016) |
| Geothermal energy | The annual incentive (I) is determined by the following formula: I = Ei . Ci
(Annex II, 2.1.b DI 16/02/2016) |
| Solar thermal energy | The annual incentive (I) for solar thermal and solar cooling is determined by the following formula: I = Ci. Qu. Sl
(Annex II, 2.3 DI 16/02/2016) |
Addressees
Entitled party: Public administration and private individuals or institutions (Art. 3.1, DI 16/02/2016)
Obligated party: The State.
Procedure
Process flow | The installer must file the access request through the card-application at the website of GSE within 60 days from the date in which works on the installation are finished (Art. 6, c.1 and c.3, , DI 16/02/2016). The data entered in the card-application will be subject to an initial review to check compliance with the minimum requirements for the installations, (Art. 6, c.8, , DI 16/02/2016). Following the verification of the submitted data, the installer will receive the card-contract. The installer should accept the conditions contained in the card-contact to be.granted the incentive (Art. 6, c.8 and c.9, DI 16/02/2016). |
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Competent authority | GSE (Art. 8 DI 16/02/2016) |
Degression
The incentive level is adjusted after the cap of € 700 million in the case of private individuals and € 200 million in the case of public administration is reached (Art. 1, c.3 and c.4 DI 16/02/2016) or after 3 years by means of an interministerial decree (Art. 1, c.2 in conjunction with Art. 28, c. 2, DL 28/11).
Cap
The cap is set at € 700 million in the case of private individuals and € 200 million in the case of public administration. After reaching this cap, the incentive level will be adjusted (Art. 1, c.3 and c.4 DI 16/02/2016).
Eligibility period
Depending on the type of intervention and capacity, incentives are granted for the following amounts of time:
- Substitution of existing heating systems with aerothermal, hydrothermal or geothermal heat pumps or biomass installations
- For capacities below 35 kW: 2 years
- For capacities between 35kW and 2000 kW: 5 years
- Substitution of existing boilers with aerothermal, hydrothermal or geothermal heat pump-based boilers: 2 years
- Substitution of existing heating systems with biomass installations
- For capacities below 35 kW: 2 years
- For capacities between 35kW and 2000 kW: 5 years
- Installation of solar thermal systems
- For surfaces below 50 m²: 2 years
- For surfaces between 50 and 2500 m²: 5 years.
(Art. 7, Table A, in conjunction with Annex I and II DI 16/02/2016).
Distribution of costs
| State | The government has set up an annual fund of € 900 million to support the costs of the scheme for RES-H (Conto Termico). The entity responsible for the management and disbursement of the incentives is the GSE. In order to cover the costs incurred by the GSE in its management and administrative activities, the responsible subjects are required to pay a fee equal to 1 percent of the total value of their received contribution with a ceiling of € 150 (Art. 17 DI 16/02/2016). |
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Italy
