Tax Changes 2024: Green Homes, Deductions & Bonuses Explained
- Nearly 80% of homes in Italy require redevelopment to improve their energy class, according to a recent report.
- The European "Case Green" Directive, soon to be in effect, mandates that member states define which buildings need intervention.
- An ENEA 2023 Report analyzed Superbonus-funded renovations through 2022, detailing their impact on costs and energy savings.
Italy Faces Housing Renovation Challenge for Energy Efficiency
Updated April 15, 2024
Nearly 80% of homes in Italy require redevelopment to improve their energy class, according to a recent report. This push for greater energy efficiency comes as Italy, wiht some of the oldest real estate in Europe, strives to meet ambitious EU targets.
The European “Case Green” Directive, soon to be in effect, mandates that member states define which buildings need intervention. Italy faces a particular challenge after the discontinuation of the 110% Superbonus, which incentivized energy class improvements.Around 500,000 buildings benefited from the bonus.
An ENEA 2023 Report analyzed Superbonus-funded renovations through 2022, detailing their impact on costs and energy savings. The report highlights the varying degrees of energy saving achieved by different interventions.
While thermal coats on over 222,000 buildings resulted in annual energy savings of 2,897.29 gigawatt-hours (GWH) at a cost of 5.47 euros per Kilowatt-hour (KWH), replacing fixtures (458,705 interventions) yielded 1,138.68 GWH savings at 10.98 euros per kWh. Curtains and solar shields proved even less cost-effective, saving only 30.28 GWh at 18.59 euros per kWh. Condensing boilers (161,567 units) saved 411.87 GWH at 5.24 euros per kWh, while electric steam compression heat pumps (almost 200,000 installed) saved 1,000.34 GWH at 3.39 euros per kWh.
Starting in 2025, only hybrid heating systems will qualify for concessions, and gas boilers will be phased out by 2040.
We must give the incentives to the things you need.
These varying costs and savings could influence future bonus programs, with potential tax deductions for higher-income individuals and direct state contributions for lower-income households.Environmental Minister Gilberto Pichetto fratin said the government needs to incentivize essential upgrades.
What’s next
Future incentives may prioritize essential upgrades and consider income levels to ensure effective energy efficiency improvements across Italy’s housing stock.