WHAT ARE RECs?

What are Renewable Energy Communities

Renewable Energy Communities (RECs) are increasingly in the spotlight. For you, as a consumer, RECs offer numerous financial advantages, similar to those provided by the 110% Superbonus in the construction sector.

But what exactly are RECs, explained in simple terms? Who can join? What are the benefits?

In this article, we’ll explore why RECs represent the energy model of the future and why they are gaining growing attention in Italy and Europe.

Imagine your neighbor has a solar panel system: did you know you can use the energy they produce but don’t consume? That’s precisely what RECs are! They allow you to collaborate to consume, share, and sell renewable energy, creating economic benefits for all participants.

More specifically, according to the Italian Union of Chambers of Commerce, they are:
"An association of citizens, businesses (whose participation in the renewable energy community does not constitute their primary business activity), territorial entities, and local authorities that decide to come together to produce and share the electricity they need, generated from renewable sources."

In just a few lines, we’ve already introduced several important concepts. However, the key point lies in the final part of the definition: RECs are a concrete response to the energy transition and the challenges of environmental sustainability.

Participants, operation, and benefits of RECs

Who can join a REC?

Many segments of civil society can participate in a REC:

• Private citizens

• Public entities and local administrations

• Small and medium enterprises

Operational Model

RECs operate through collaboration among all participants, who actively contribute to energy production and/or consumption. A participant who generates renewable energy is called a "producer," one who consumes it is a "consumer," and one who both produces and consumes energy is known as a "prosumer."

These actors are encouraged to increase local production and consumption of renewable energy, thereby reducing costs and generating further fiscal incentives.

The operation of RECs is based on three main principles:

• Production

  RECs rely on the installation of renewable energy systems, such as solar panels, wind turbines, or hydroelectric plants.

• Self-consumption
  Members of the REC can consume the energy they produce, reducing their dependence on traditional energy supplies and lowering their bills.

• Sharing

  Any excess energy produced can be shared with other members, further reducing energy costs for everyone.

Why will it be so advantageous for users? All the advantages.

The Ministerial Decree 414/2023, known as the REC Decree, marks a significant step toward promoting energy communities in Italy. This decree establishes guidelines for creating and operating RECs, offering economic incentives to encourage the energy transition.

Specifically, REC members can benefit from the following financial and economic advantages:

• • NON-REFUNDABLE GRANTS: Up to 40% of installation costs are covered by public funds.

  • ATTRACTIVE TARIFFS: RECs can benefit from incentive tariffs for renewable energy produced and shared, valid for a period of 20 years.

  • REDUCTION IN ENERGY COSTS: Through self-consumption and energy sharing, community members can significantly lower their energy bills.

  • PRICE STABILITY: Local energy production reduces exposure to fluctuations in market energy prices.

Do you want to access these fiscal advantages?

Contact us for free: at HexErgy, with our innovative tools, we’ll help you join a REC and access these benefits.