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Renewables & Environment··3 min read

Renewable Energy Communities (REC)

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

Primary Substation REC Perimeter Business Producer + Consumer Condominiums Consumers Municipality / SME Consumers Virtually shared energy (hourly basis) GSE incentive: 60-120 EUR/MWh x 20 years

Key numbers

20 years
GSE incentive duration
60-120 EUR/MWh
Incentive tariff
up to 40%
NRRP grant (municipalities <5,000 inh.)

REC benefits comparison

BenefitDescriptionIndicative value
Incentive tariffGSE compensation for shared energy60-120 EUR/MWh for 20 years
NRRP grantCapital grant for plants in small municipalitiesUp to 40% of investment
Bill savingsVirtual self-consumption of produced energy30-50% of energy bill
Network charge rebateReduced grid charges for shared energy~8-10 EUR/MWh
Environmental benefitCO2 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.

Key requirements for a REC: Members must be connected to the same primary substation (verifiable on the e-distribuzione website). Maximum capacity of individual plants is 1 MW. A legal entity (association, cooperative, consortium) is required with a social purpose that includes environmental, economic, and social benefits for members. Contact IPGS Energy for a feasibility assessment.

The articles published on this website are for informational and educational purposes only. Some content may have been written with the support of artificial intelligence tools, based on official sources and industry data. IPGS ENERGY does not guarantee completeness or the absence of errors.

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