As part of the 2030 decarbonization goals, the national legislature, prompted by EU institutions, has for some time now been allocating significant resources toward clean energy sharing and self-consumption, with a particular focus on Renewable Energy Communities (“CERs”).
Specifically, various stakeholders involved in such configurations may benefit from:
Incentives in the form of a feed-in tariff on the shared portion of energy, up to a maximum capacity of 5 GW;
under certain conditions (especially for CERs developed in municipalities with populations under 5,000), non-repayable grants under the National Recovery and Resilience Plan (“PNRR”), covering up to 40% of investment costs, with €2.2 billion allocated and a target of 1.73 GW of installed capacity.
As of today, applications under the PNRR only total 420 MW of capacity (averaging 90 kW per CER), of which less than half (43%) approved.
With about five months remaining before the final application deadline (November 30th, 2025), the goal of 1.73 GW set at the end of 2023 still seems distant, approximately 1.3 GW is still missing.
Unfortunately, the situation is no brighter regarding feed-in tariffs. Applications submitted for this mechanism total around 130 MW (averaging 120 kW per CER). Although the deadline for this incentive is extended until December 31st, 2027, the estimated quota still appears far from being reached, with a shortfall of roughly 4.9 GW.
This scenario seems to stem, on one hand, from overly ambitious political targets and, on the other, from well-known bureaucratic and operational hurdles that complicate the establishment and management of CERs, significantly hindering their spread.
In this context, following recent public statements by Minister Pichetto Fratin, the legislator and the Ministry of Environment and Energy Security (MASE) have recently sought to give a fresh push to energy communities by making significant changes to the regulatory framework.
These changes concern two key areas:
Expanded eligibility for CER participation, introduced via Decree-Law No. 19 of March 29, 2025, converted into Law No. 60 of April 24, 2025 (also known as the “DL Bollette”).
Updated access rules for PNRR non-repayable grants, under a new ministerial decree currently awaiting approval from the Court of Auditors.
DL Bollette: Key Changes
To broaden access to CERs, DL Bollette significantly expanded the types of entities allowed to establish or join a CER. In addition to individuals, SMEs, local authorities, religious and third-sector organizations, the following are now also eligible:
Public service agencies (ASP);
Land reclamation consortia;
Public housing authorities;
Recognized environmental associations.
The law also appears to reflect GSE’s clarifications regarding “national CERs.” Specifically, the phrase “located in the same municipalities as the plants” has been removed from Article 31(1)(b) of Legislative Decree 199/2021. This suggests that CER members may now reside in different municipalities from those hosting the energy installations.
However, entities holding “control powers” (i.e., powers that guide the CER and ensure its statutory purpose) must still be located where the plants are situated.
The amendment seems aimed at accommodating a shift toward multi-configuration models, enabling greater flexibility in member selection (no longer restricted to municipal boundaries) and governance structures (e.g., control committees representing local interests).
Nonetheless, it’s too early to draw final conclusions. Further clarification from ARERA, MASE, and GSE is needed, along with analysis of the regulation’s practical implications.
The MASE Decree: New PNRR Grant Rules
To help meet 2023 targets, on May 16th, MASE issued a decree that revises how incentives and grants for CERs are accessed.
Key updates include:
Expanded eligibility to CERs in municipalities up to 50,000 residents (previously limited to under 5,000), vastly broadening potential applicants. Approximately 7,750 Italian municipalities fall under the new threshold versus about 5,500 under the old one.
Advance payments: Up to 30% of the PNRR grant may now be requested in advance (previously capped at 10%).
Incentive compatibility: When combining capital grants with feed-in tariffs, individuals in CERs no longer face reduced tariff rates (previously halved if the grant covered 40% of investment costs).
Extended timelines: While the installation must begin by June 30, 2026, projects may become operational as late as December 31, 2027. This aims to accommodate delays related to grid works and connection processes.
These changes have significant implications for business plans and project financing (if any) especially for third-party producers. Beneficiaries can now receive more upfront funding, retain higher tariff revenues, and manage timelines with more confidence.
Final implementation depends on publication in the Official Gazette following review by the Court of Auditors.
Remaining Challenges
Despite new opportunities, several concerns remain. Applications for PNRR funding must be submitted by November 30, 2025, and projects must already have accepted grid connection quotes and all necessary permits.
Even after recent streamlining under the Consolidated Renewable Energy Act, these steps remain time-consuming and clash with the tight PNRR deadlines.
Assuming the decree takes effect in early June, market players will have just six months to conduct feasibility studies, assess financial viability, and complete bureaucratic procedures with grid operators and public administrations, not to mention forming CERs or negotiating contracts with third-party producers.
For existing CERs, the inclusion of new eligible participants, especially public entities, raises legal and operational questions, such as whether existing statutes must be amended to reflect changes in objectives, participation criteria, or decision-making processes. All this while preserving the local dimension emphasized by both EU and national regulations.
This scenario highlights the urgent need for a fundamental shift in how CER regulations are designed, no longer as barriers to investment, but as enablers, allowing small producers and consumers to actively contribute to decarbonization.
While recent developments are promising and point in the right direction, a comprehensive review of the current legislative and regulatory framework shows that the expansion and consolidation of collective self-consumption in Italy’s energy landscape is still progressing far too slowly.
