The Transition 5.0 Plan provides companies located in Italy with a tax credit to invest in technologically advanced tangible and intangible assets that reduce the energy consumption of the production structure by at least 3%, or of production processes by at least 5%. The tax credit contribution varies according to the size of the investment and the reduction in consumption. The plan also provides subsidies for expenditure on training activities aimed at acquiring or consolidating skills in technologies relevant to the energy and digital transition of production processes.

The tax credit is recognised for new investments made from 1 January 2024 to 31 December 2025, with the option of filling out all paperwork by 28 February 2026.

The Transition 5.0 Plan aims to promote environmental sustainability, by reducing energy consumption and CO2 emissions, and to accelerate the digitisation of Italian companies through the adoption of advanced technologies. It also aims to improve competitiveness and innovation by supporting the development of new technologies.

Financed with the National Resilience and Recovery Plan funds, the Transition 5.0 Plan has a budget of EUR 6.3 billion, over the two-year period 2024-2025, in line with the short- and medium-term actions of the REPowerEU plan, aimed at fostering investments in tangible and intangible assets, self-production and self-consumption from renewable energy sources, and training. 

Within the scope of interventions in the field of self-generation and self-consumption from renewable sources, eligible expenditures include: tangible assets relating to electricity generation units, facilities for storing the energy produced, auxiliary plant services and transformers located upstream of the electricity grid connection. In the case of self solar power generation, only investments in installations made with photovoltaic modules that meet the technical and territorial criteria of the ENEA Register are eligible.

No, investments aimed at the self-production of energy from renewable sources - such as the installation of a photovoltaic system (which complies with the territorial and technical requirements of the ENEA register) - is to be considered an intervention 'driven' by a general action of energy efficiency of the company's production processes or consumption. 

The Transition 5.0 tax credit is granted on condition that a reduction in energy consumption of at least 3% is achieved for the production facility or, alternatively, of at least 5% of the process concerned by the investment. 

The amount of the tax credit varies in relation to the investment share and the reduction in consumption, according to the table below:

For example, for a total investment of 2 million euros, which results in an intervention to reduce the energy consumption of the company's production facility by more than 10 percent, a base tax rate of 45 percent is assigned, equal to a tax credit of 900,000 euros. 

Thanks to the European high-efficiency modules in the Enea register, you'll have access to the Transition 5.0 Plan incentive that allows you to recover up to 63% of the costs of a photovoltaic system (without a battery energy storage system) as a tax credit to be collected in 1 to 5 years. The percentage of the tax credit depends on the module class, as defined by the Enea, and on the size of the total investment and the effectiveness of the energy efficiency intervention.

The Plan provides for an increase in the basis for calculating the incentive for plants that include higher efficiency panels envisaged in points a), b) and c) of the ENEA Register. For example, an installation that would be entitled to a tax credit of 45%, using class C modules, gets a 140% increase resulting in a credit equivalent to 63%.

No, the surcharge only applies to the cost of the photovoltaic system with or without a battery storage system. 

For solar photovoltaic power plants, the maximum eligible cost under the plan varies between 800 and 1350 euro/kW, depending on the size of the plant. Expenditure on the purchase and installation of storage systems for electricity produced is eligible for tax credit up to a maximum total amount of EUR 900/kWh.

The recently published Decree that implements the Transition 5.0 Plan stipulated that the tax credit could only be cumulated with other facilities financed with national resources, and not with 'other facilities provided under EU programmes and instruments', such as the National Resilience and Recovery plan.  Thus, the 40% contribution of the investment cost (National Resilience and Recovery plan contribution) provided for Renewable Energy Communities in municipalities under 5,000 inhabitants cannot be cumulated with the benefit from the Transition 5.0 Plan.

Two certifications (one 'ex ante' and one 'ex post') must be submitted to obtain the tax relief. The first, issued by an independent evaluator, certifies the reduction in energy consumption achievable through the planned investments, while the second will prove the actual implementation of these investments in accordance with the 'ex ante' certification. 

In addition, in order to book the tax credit, companies must send an Advance Notification, accompanied by the 'ex-ante' certification, via the 'Transition 5.0' IT Platform of the GSE (Gestore Servizi Energetici), accessible via SPID through the customer area. 

The evaluations and certifications required to access the Transition 5.0 Plan must be carried out by qualified professionals, such as Energy Management Experts certified according to UNI CEI 11339, Energy Service Companies (ESCo) certified according to UNI CEI 11352, and engineers or industrial experts registered with professional registers with proven experience in the energy efficiency of production processes.