Crucial for funding, managing resources, and ensuring the financial sustainability of ECs. This includes understanding the various European grants available, novel incentive schemes, and financing opportunities that can support the development of ECs.
Grants and subsidies are forms of financial aid that are given to individuals, businesses, or institutions, with the aim of promoting certain activities or initiatives. They are often used to stimulate economic growth, support R&D, encourage investment in certain sectors, or assist individuals and organizations in need.
Equity finance is the process of raising capital through the sale of shares in a company. In this form of financing, companies sell a portion of their ownership, or equity, in exchange for cash. The investors who purchase these shares become shareholders in the company and can claim part of the company's assets and profits.
Debt finance is the method of raising capital by borrowing money that is to be repaid at a future date, usually with interest. The entities that provide the funds are known as lenders, and they can be banks, credit institutions, or investors through the bond market.
Ownership models refer to the structures that define the legal and financial ownership of a business or an asset. These models determine who has the right to make decisions, who benefits from the profits, and who bears the risks. Some common types of ownership models are Partnership, Cooperative, Non-Profit.
KEYWORDS
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Renewable Energy Community
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Collective self-consumption
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NRRP grants
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Non-repayable funding
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Small municipalities (<5
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000 inhabitants)
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Local energy transition
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Energy storage
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GSE
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Italy energy policy
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RED II
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Mission 2 Component 2 Investment 1.2
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Reduced VAT
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10% VAT
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Renewable energy installations
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Italy
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Energy efficiency
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Tax incentive
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Tariff Premium
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RID/SSP
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Summary: <p>These are non-repayable grants provided under the Italian National Recovery and Resilience Plan (NRRP) to support the creation and development of Renewable Energy Communities (RECs), with a focus on small municipalities and local energy self-consumption projects. The grants help cover investment costs for renewable energy plants and storage systems.</p>
Type of funding: The scheme provides non-repayable grants covering up to 40% of eligible project costs for the installation of renewable energy plants and related infrastructure in small municipalities. The program promotes energy self-consumption, local energy independence, and the development of RECs, complementing other incentives such as the Tariff on Shared Renewable Energy.
Requirements: <p>Applicants must be Renewable Energy Communities (RECs) or collective self-consumption groups legally established under Italian law.</p><p>The project must be located in municipalities with fewer than 5,000 inhabitants.</p><p>Eligible renewable energy plants: up to 1 MW per plant, maximum 5 MW total per community.</p><p>Projects must comply with technical and administrative criteria defined in the GSE NRRP calls.</p><p>Must submit the application via the GSE online portal during open calls.</p>
How to apply: <p>Applications are submitted through the GSE online portal:</p><p>1. Register the REC or collective self-consumption group.</p><p>2. Prepare and submit technical and administrative documentation for the project.</p><p>3. Wait for evaluation and approval of eligible costs.</p><p>4. Upon approval, receive funding disbursement according to project milestones.</p>
Useful links
Related to:
Tariff on Shared Renewable Energy within Energy Communities
Renewable Energy Community ; Collective self-consumption ; NRRP grants ; Non-repayable funding ; Small municipalities (<5 ; 000 inhabitants) ; Local energy transition ; Energy storage ; GSE ; Italy energy policy ; RED II ; Mission 2 Component 2 Investment 1.2
Date: 24/02/2026
Summary: <p>In Italy, a reduced VAT rate of 10% applies to the installation of renewable energy plants, energy efficiency upgrades, and related equipment when used by Renewable Energy Communities (RECs) or for self-consumption purposes. This measure reduces upfront investment costs, making small-scale and community energy projects more financially viable.</p>
Type of funding: This financial measure allows beneficiaries to pay 10% VAT instead of the standard 22% on eligible renewable energy plants and related infrastructure. It is intended to lower investment costs for community energy projects and energy efficiency upgrades, thereby increasing the economic feasibility of RECs. The scheme can be combined with other incentives, such as Tariff Premium, RID/SSP, or NRRP grants.
Requirements: <p>The beneficiary must be a Renewable Energy Community (REC), collective self-consumption group, or an individual performing energy efficiency works.</p><p>The reduced VAT applies to renewable energy installations, such as solar PV, small wind, biomass, and associated storage systems.</p><p>Works must be directly related to the production of renewable energy for self-consumption or community sharing.</p><p>Compliance with Italian tax law and proper invoicing is required.</p>
How to apply: <p>1. Verify eligibility with a tax advisor or local authorities.</p><p>2. Ensure that invoices from suppliers correctly apply the 10% VAT rate.</p><p>3. Keep all documentation for compliance and potential tax inspections.</p><p>4. Integrate this cost reduction into project financial planning.</p>
Useful links
https://www.agenziaentrate.gov.it/portale/,https://www.normattiva.it
Related to:
Reduced VAT ; 10% VAT ; Renewable Energy Community ; Collective self-consumption ; Renewable energy installations ; Italy ; Energy efficiency ; Tax incentive ; RED II ; Tariff Premium ; RID/SSP ; NRRP grants
Date: 24/02/2026
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