Energy Efficiency Costs Spark Debate Over Future Green Home Incentives
Rome, April 15, 2024 - A new analysis of data from Enea, the Italian National Agency for New Technologies, Energy and enduring Economic Growth, reveals important disparities in the cost-effectiveness of various energy efficiency upgrades undertaken through Italy’s Superbonus and other incentive programs. The findings are prompting calls for a restructuring of future benefits, potentially shifting towards selective bonuses and a tiered system of aid based on income.
While the Superbonus has represented a ample investment – totaling 160 billion euros as of the end of March – the energy savings achieved vary considerably depending on the type of intervention. Thermal insulation, completed on over 222,000 buildings by the end of 2022, yields an annual energy saving of 2,897.29 gigawatt-hours (GWh) at a cost of 5.47 euros per kilowatt-hour (kWh). In contrast, replacing fixtures (458,705 interventions, 1,138.68 GWh saved) costs 10.98 euros per kWh, and installing curtains, solar shading, or Venetian blinds (82,000 interventions, 30.28 GWh saved) reaches 18.59 euros per kWh. condensing boilers (161,567 installed, 411.87 GWh saved) cost 5.24 euros per kWh,while condensing hot air generators are more expensive at 9.18 euros per kWh. Heat pumps, wiht nearly 200,000 installations and 1,000.34 GWh saved, currently represent the most cost-effective option at 3.39 euros per kWh.
These discrepancies are fueling discussions about optimizing future incentives. Trade associations and consumers are advocating for new bonuses,and policymakers are considering a shift away from blanket subsidies towards a more targeted approach.environment Minister gilberto Pichetto Fratin, in a recent interview with Corriere della sera, indicated a potential move towards tax deductions for higher earners and direct state contributions for lower incomes, stating, “We must give incentives too the things that are needed.”
From 2025, only hybrid heating systems will be eligible for subsidies, and gas boilers will be phased out entirely by 2040. the Enea data underscores the need for a strategic reassessment of energy efficiency incentives to maximize impact and ensure responsible use of public funds as Italy progresses towards its decarbonization goals.
