Thermal Account

THERMAL ACCOUNT 2.0

– What is the Thermal Account 2.0 effective from the 31rst May 2016
– Incentivable measures from the 2016 Thermal Account
– Energetic Diagnosis and Energy Performance Certificate (APE)
– Entities allowed to take advantage of incentives
– Calculation of incentives
– How to access incentives
– Availability of economic resources
– Calculation of incentives for absorption heat pumps
– Incentive’s value
– Other eligible expenses
– Hybrid heat pump systems

1. What is the Thermal Account 2.0 effective from the 31rst May 2016

The Decree of the 16th February 2016, better known as “Nuovo Conto Termico 2016”, published on the Official Gazette of the 2nd March 2016 and effective from next May 31rst, provides a subsidy for all energy efficiency measures and for the production of thermal energy from renewable sources in existing buildings from any cadastral category.

The economic contribution envisaged by the decree, unlike tax deductions (50% and 65% which are a reduction of IRPEF and IRES taxes), is credited directly to the current account by the GSE Energy Services Manager.

You can take the opportunity of the new Thermal Account by choosing:
– Gas and renewable energy heat pumps
– Condensing boilers
– Condensing hot air generators .

This innovation is an important step towards the recognition of modern technologies that immediately bring concrete benefits to the citizens in terms of buildings’ energy efficiency and savings of energy costs.

2. Interventions incentivable from the Thermal Account 2.0

The incentives are divided into 2 distinct categories:

Category 1 – measures to increase energy efficiency, intended only for public administrations

1.A – thermal insulation of opaque surfaces;
1.B – replacement of transparent closures;
1.C – replacement of existing winter air conditioning systems with systems equipped with condensation heat generators;
1.D – installation of shielding and / or shading systems.

The new incentivable measures introduced:

1.E – transformation of existing buildings into «almost zero energy buildings»;
1.F – replacement of systems for interior lighting and external appliances of existing buildings with efficient lighting systems;
1.G – installation of management and automatic control technologies (building automation) of the thermal and electrical systems of buildings.

For Category 1, the grant can reach 40% of the expenditure incurred and is paid in 2 or 5 years according to the case or in a lump-sum for amounts up to 5,000 euro.

Category 2 – measures for the production of thermal energy from renewable sources and high efficiency systems, accessible to PP.AA. and Private

2.A – Replacement of existing winter air-conditioning systems with heat pumps, together with the installation of allocators in case of plants over 200 kW ;
2.B – replacement of winter air-conditioning systems with heat generators fed by biomass;
2.C – installation of solar thermal collectors, also combined with solar cooling systems;
2.D – replacement of electric water heaters with heat pump water heaters.

The new incentivable measures introduced:
2.E – replacement of existing winter air conditioning systems with hybrid heat pump systems (with condensation boilers).

For Category 2, the grant can reach 65% of the expenditure incurred and is paid in 2 or 5 years according to the case or in a lump-sum for amounts up to 5,000 euro.

ATTENTION – Update August 2016
Only for the Public Administration, with the exclusion of the Cooperatives of Inhabitants and Social Cooperatives, also through the ESCo, it is foreseen the disbursement in a single installment also for incentives exceeding 5000 euros and for systems over 35 kW , both with heat pumps and boilers.

3. Energy Diagnosis and Energy Performance Certificate (APE)

The pre- operative Energy Diagnosis and Post-Operational Performance Certificate (APE) are required for interventions carried out on the entire building fitted with a heating system with a total nominal power of ≥ 200 kWt, in the event of:

– replacement of existing winter air-conditioning systems with systems with condensation heat generators;
– replacement of existing winter air-conditioning systems with heat pumps;
– replacement of existing winter air conditioning systems with hybrid heat pump systems (with condensation boilers).

The decree also provides incentives for energy diagnosis and energy certification’s costs if related to the incentivable measures mentioned above, equal to 50% for individuals and 100% for PP.AA.

4. Entities allowed to take advantage of the incentives

– Public Administrations , that are: State Administrations, institutes and schools of every order, State’s companies and administrations, Regions, Provinces, Municipalities, Mountain Communities, University, the Autonomous Institutes Public housing, Chambers of Commerce, all non-economic Public Institutions, companies and bodies of the National Health Service (as provided for in Article 1, paragraph 2 of Legislative Decree No. 165/2001), Cooperatives of inhabitants registered in the National Register, the fully public assets and social cooperative societies.
– Private subject, understood as natural persons, condominiums and subjects who hold business income or agricultural income. The same beneficiaries included in the Financial are included in this category (incentives can not be cumulated).
For the purposes of access to the mechanism, the beneficiary of the incentive can also work through a delegated subject to present the requested incentive. The most typical case is that of the ESCo (Energy Service Company) through the signing of a specific contract.

5. Calculation of incentives

For small projects involving the production of thermal energy from renewable sources (with total thermal power of less than 2,000 thermal kW), the decree establishes specific calculation schemes based on:

– coefficients for the valorisation of the energy produced, as established in the tables attached to the decree;
– presumed thermal energy production of the installed system, depending on the size and on the climatic zone.

6. How to access incentives

Access to incentives can take place in 2 diferrent ways:

1) by direct access: for measures carried out by public administrations and private parties, the request must be submitted within 60 days from the end of the works.
A simplified procedure is planned for the interventions concerning the installation of one of the small appliances (for 35 kW generators and 50 sqm solar systems) contained in the Catalog of domestic appliances, published and updated periodically by the GSE.

2) by reservation: for the measures that have still to be carried out by the Public Administration and the ESCOs operating on their behalf, it is required a first advance on account and the whole sum at the end of the works.

For the reservation of the incentive, the PA, with the exception of co-operatives of inhabitants and social cooperatives, can present the estimate form-request, if one of the following conditions occurs:

– the presence of an Energy Diagnosis and an administrative act attesting the commitment to the realization of at least one measure among those indicated in the Energy Diagnosis;
– the presence of an energy performance contract stipulated between the PA and an ESCO;
– the presence of an administrative measure or act attesting the successful assignment of the works with a delivery report.

The reservation request must be accepted by the GSE. In this case, the latter proceeds to pledge, in favor of the applicant, the sum corresponding to the due incentive.

7. Availability of economic resources

The commitment of cumulative annual expenditure is equal to:

– 200 million euros for the Public Administration (Category 1 and Category 2);
– € 700 million for private parties (Category 2).

Within the contingent of expenditure due to the PP.AA. a quota of 100 million euros is included (equal to 50% of the total expenditure quota of 200 million euros) for the procedure of access to incentives by reservation.
On the homepage of the GSE website ( www.gse.it ) the Counter of the Thermal Account is published and periodically updated with the quota of expenditure already committed.

8. Calculation of incentives for absorption heat pumps

For gas heat pumps, the incentive is calculated according to the following formula:
I tot = E i x C i

Where:

I tot is the annual incentive in euros;
C i is the coefficient of valorisation for the sum of the incentivized thermal energy and the primary energy saved, expressed in € / kWht;
ei is the incentivized thermal energy produced in a year and is calculated as follows:

where:

GUE is the coefficient of performance of the installed gas heat pump, as deduced from the data supplied by the manufacturer, in compliance with the requested requirements.
Q u is the total heat produced by the system expressed in kWht and is calculated as follows:
Q u = P n x Q uf

where:

P n is the installed heat pump’s nominal heat output;
Q uf is a usage coefficient that is dependent on the climatic zone, as shown in Table 1.

9. Coefficients for the valorisation of the thermal energy produced by gas heat pumps

The incentive is issued:
– in 2 annual installments for plants with thermal power up to 35 kW ;
– in 5 annual installments, for plants with thermal power greater than 35 kW .

For grants of ≤ 5,000 euros, the incentive is recognized in a single solution .

The payment of the first installment is scheduled on the last day of the following month, at the end of the bimester in which the contract’s activation date falls.

ATTENTION – Update August 2016
For the Public Administration alone, with the exclusion of the Cooperatives of Inhabitants and Social Cooperatives, also through the ESCo, it is foreseen the disbursement in a single installment also for incentives exceeding 5000 euros and for systems over 35 kW , both with heat pumps and boilers.

10. Incentives’ value

The incentives payable through the GSE are:
– for heat pumps according to the rated heat output, the energy efficiency (GUE) and climate zone in which the installation occours.
– for condensing heat generators according to the installed thermal power with a maximum incentive ceiling per kW installed.
Incentives that can be supplied for absorption heat pumps
(table)

ATTENTION
The incentives have been calculated on the basis of the GUE and the thermal power declared by the manufacturer, in compliance with the minimum requirements and operating conditions set out in Table 4 of the Annex. I of the Decree of 16.02.2016.
The amount of the contributions can not exceed 65% of the total incurred expenses.
The actually recognized final amount will be calculated on the basis of the algorithms envisaged by the Decree applied to the data declared by the Responsible Subject exclusively through the Portaltermico, and will be made available in the contract-sheet, following the technical-administrative investigation carried out by the GSE.
Other eligible expenses

11. Eligible expenses (in addition to those linked to the heat generator) to determine the total expenditure:

– dismantling and decommissioning of the existing, partial or total winter air conditioning system;
– supply and installation of all the thermal, mechanical, electrical and electronic equipment of the hydraulic and masonry works necessary for the plant’s replacement;
– possible measures on the distribution network ;
– water treatment systems;
– control and regulation devices;
– emission systems;
– works and collection systems for plants that use heat exchange with the subsoil.

11. Hybrid heat pump systems

Definition of a heat pump hybrid system:
system equipped with a heat pump integrated with condensation boiler assembled in factory or factory made.

For hybrid systems with heat pump, the incentive is calculated according to the characteristics of the heat pumps installed in the system, as shown the following formula:
Itot = kx Ei x Ci

Where:

Ei and ci are the same terms for absorption heat pumps
k is a coefficient that considers the actual use of the heat pump in the hybrid system and the efficiency of the hybrid system as a whole; is established equal to 1.2.

For hybrid systems with heat pump, the ratio between the heat output of the heat pump and the heat output of the boiler must be less than or equal to 0.5.