Citizens and businesses producing and sharing renewable energy: how they work and what incentives they offer.
Renewable Energy Communities (REC, or CER in Italian) are associations of citizens, SMEs, local authorities, and businesses that come together to produce, consume, and share renewable energy. Introduced in Italy by Legislative Decree 199/2021, they represent a paradigm shift in the energy system.
How a REC works
Key numbers
REC benefits comparison
| Benefit | Description | Indicative value |
|---|---|---|
| Incentive tariff | GSE compensation for shared energy | 60-120 EUR/MWh for 20 years |
| NRRP grant | Capital grant for plants in small municipalities | Up to 40% of investment |
| Bill savings | Virtual self-consumption of produced energy | 30-50% of energy bill |
| Network charge rebate | Reduced grid charges for shared energy | ~8-10 EUR/MWh |
| Environmental benefit | CO2 reduction and ESG profile improvement | ~0.3 tCO2/MWh avoided |
How businesses participate
CER members virtually share energy produced by renewable plants (typically solar PV) located in the same geographical area, connected to the same primary substation. No direct physical connection is needed: sharing occurs on an hourly basis through the virtual self-consumption mechanism.
Opportunities for businesses
Companies can participate as producers (installing plants), consumers (benefiting from sharing), or CER promoters. The economic advantage comes from combining self-consumption, incentives, and reduced network charges. For companies with large available surfaces (warehouses, parking areas), promoting a CER can generate value for themselves and for the local community.
Informational content by IPGS Energy. Information is reviewed as of the stated update date and does not replace a contractual, tax or regulatory assessment specific to an individual business.