In the context of energy retrofit and efficiency, Ecobonus 110 represents an important measure to relaunch the construction industry, the plant engineering sector, the companies of the sector and similar fields after a long period of economic stagnation, helping to reduce electricity consumption and modernising the buildings .
IBS ENERGY is able to operate by offering the service required by the Decree Law, through a partnership with a retrofit platform and agreements with investors active in the efficiency sector . Therefore we are collecting the needs represented by building managers and homeowners in order to provide the services required by the “ Decreto Legge Rilancio 2020 ” and the contents of the DL n. 34 / 2020 art. 119, in terms of Incentives for energy retrofit and efficiency, earthquake bonus, as well as photovoltaic and charching columns for electric vehicles, super bonus with 110% tax deductions . Below there is more information about :
- which interventions
- access conditions
- who are the beneficiaries
- method of credit assignment and invoice discount .
Premises and introduction to Ecobonus 110
This presentation makes no mention of which interventions combine to obtain the increase of two energy classes of the building and these technical aspects are deepened after the real estate analysis and survey . It is necessary to specify that if an increase of two classes is not possible, perhaps because the class energy of the building is already high, there has to be an improvement anyway . If the class energy of the real estate is already maximum, it is not possible to benefit from the statutory incentives .
The Italian Revenue Agency specifies some guidelines and final criteria, after the promulgation of the Decree Law that has to be converted into law within 60 days from the enactment, otherwise it is no longer valid . Criteria and guidelines may broaden the scopes, since they currently include only the main house ; however the second homes could be included too, maybe with some restrictions through the guidelines .
ECOBONUS GUIDE AND KEY INFORMATION :
PERIOD OF VALIDITY OF ECOBONUS 110 : the Decree Law establishes from the 1st July 2020 to 31 December 2021, for household expenses paid during this period .
OTHER ACTIVE ECOBONUSES : Ecobonus 110 can be added to other Ecobonuses ( 50 %, 65 %, 85 %, earthquake bonus ), therefore it is important to avoid confusion among the several measures and the advantage planned for citizens . Below there are some indications about the measure: what it provides for and the implementing rules .
WHO IS ENTITLED TO ECOBONUS 110 ? The measure is applicable in the case of work on buildings for residential use, then multifamily buildings ( block of flats ) and single housing unit ( housings, detached houses ).
WHO IS NOT ENTITLED TO ECOBONUS 110 ? Productive activities are excluded, such as warehouses, production companies, etc. Return to the page ROOFINGS for industrial warehouses, especially in the case of consumption and SEU, and/or in the case of replacement of roofings with ASBESTOS .
FOR WHICH INTERVENTION ON BUILDINGS CAN ECOBONUS 110 BE REQUESTED ? It can be requested to conduct one of the following interventions :
Intervention 1 : THERMAL COATING
THERMAL COATING BOTH ON BLOCKS OF FLATS AND SINGLE BUILDINGS : the first type of intervention aims to isolate the house and to obtain a passive house, through interventions on vertical and horizontal opaque surfaces ( roofs and walls ) by more than 25 % of the dispersant surface of the building . Therefore you apply a thermal coating to the house, it is not necessary to apply it to the entire house ; this leads to 110 %, as long as the house increases by two categories of energy class or higher class because of the intervention . Expenditure ceiling of 60,000 euro, in the case of blocks of flats for each real estate unit composing the building . The thermal coating has to be done with specific materials, that meet the minimum environmental standards; they go beyond the simple energy efficiency and concern the organic part of construction, that is to say the following disposal and the environmental compatibility . The thermal coating deducts also other interventions, as specified below .
BOILER AND UNDERFLOOR HEATING : It is already sufficient if with the thermal coating you have an increase of two classes, otherwise for example you can also combine the replacement of the boiler or the underfloor heating, according to the type of building .
ROOF, PHOTOVOLTAIC, SOLAR THERMAL : the installation of photovoltaic and solar thermal system forms part of the applicable interventions, together with the reconstruction of the roof .
DOORS AND WINDOWS : if you choose the thermal coating and then you replace doors, windows and fixtures in a single-family house and/or detached house, Ecobonus 110 is applicable, rather than the 50 % Ecobonus normally planned . It is necessary to check carefully if doors and windows can be considered common parts in the blocks of flats . This means that the incentive is applicable to the common parts and not to the private parts of a block of flats .
WHAT IS ELEGIBLE FOR INCENTIVES as mentioned, it is possible to include other interventions that are compatible with legal requirements, less than vertical and horizontal opaque surfaces .
Intervention 2 : THERMAL SYSTEMS IN BLOCKS OF FLATS
RECOSTRUCTION OF THERMAL SYSTEMS – REPLACEMENT OF BOILER ( IN BLOCKS OF FLATS ) : the second type of intervention concerns the replacement of the winter air conditioning system with a heat pump system or condensing boiler, also in combination with photovoltaic . A deduction of 30,000 euro is planned for each housing unit . We refer to interventions on the common parts, replacement of winter air conditioning system with systems used for cooling or domestic hot water; combined and centralised systems should be included . The functions that the new system has to fulfil, among which centralised mode, air conditioning / cooling / domestic hot water, will be evaluated according to the system solution you think you will adopt ( for example the traditional condensing boilers are not enabled to cool ) . It is preferred to consider heat pumps, hybrid boilers or geothermal heat pumps, in terms of system technology . If the conversion, the energy efficiency and the retrofit are obtained through heat pump boiler or hybrid boiler, such intervention can be combined with photovoltaic .
Intervention 3 : REPLACEMENT OF WINTER HEATING SYSTEM ( INDIVIDUAL BUILDINGS )
INTERVENTIONS AFFECTING INDIVIDUAL BUILDINGS, PRIVATE HOUSES, DETACHED HOUSES ( NO BLOCKS OF FLATS ): the third type of intervention focuses on the replacement of the winter heating system with an heat pump heating system, hybrid or cogeneration installations that can be combined with the installation of photovoltaic systems benefiting from 110 % Ecobonus .
Further Information :
ADDITIONAL INTERVENTIONS :
In addition to the three main interventions mentioned above, also other interventions can be included in the Ecobonus 110 package, if they form part of HOME BONUS, ECOBONUS, EARTHQUAKE BONUS, that is interventions already benefiting from 50 % ( for example walls, installations, fixtures, distribution system, security door, etc. ); anyway they must be interventions on buildings, aimed at making the building more efficient, interventions of energy retrofit . In case you want to replace household appliances, we must consider other bonuses such as FURNITURE BONUS . Interventions such as outdoor paths, tree – trimming are obviously excluded .
WHO CERTIFICATES THE ENHANCEMENT OF ENERGY EFFICIENCY CLASS ?
The question that arises is : does an engineer have to conduct a survey ?
If the building is already certified and it has an APE ( Energy Performance Certificate ) we can start from that, however in the case of such intervention the Law 10 is applicable .
Therefore the starting point will be established and the final objectives will be defined . An engineer carries out a first survey, then the second final check is sent to ENEA ( Italian National Agency for New Technologies, Energy and Sustainable Economic Development ) for authentication within the following 90 days, that is the same method of the other Ecobonuses . The improvement process is certified, in fact sanctions are expected for false declarations of engineers, thus it is necessary to avoid making mistakes .
Basically the first step is the declaration of the building energy class and then a professional engineer has to asseverate the final energy class . It is applied what the Law 10 requires, the energy requirements of a building are established and later an APE ( Energy Performance Certificate ) is issued . The APE must certify the starting class and the energy class obtained after the interventions .
IS A PROJECT ON THE WORK NECESSARY ? Of course .
ECOBONUS: HOW WILL THE CLIENT PAY IT? HOW WILL THE COMPANY PROVIDE THE SERVICE ?
The procedure used to implement the payment of interventions is the so – called ” INVOICE DISCOUNT ” .
We consider 110 % because we include the bargaining margin with the subject receiving the credit .
The owner of the real estate spends 100, then he transfers the credit to the part who has to amortize it, therefore the additional 10% compensates expenses and interests .
THE CLIENT CAN DECIDE TO APPLY :
- A TAX DEDUCTION : i.e. to deduct costs incurred over the next 5 years from taxes .
- OR TO ASK FOR AN INVOICE DISCOUNT TO WHO CONDUCTS THE WORK : at the moment, the invoice discount may be requested for any type of intervention, derogating from the assignment of the credit and the ceiling of 200,000 euro, art.14 Law 63 / 2013 converted into the law 90 . Among the interventions appear : recovery of the building heritage, home bonus, installation of solar thermal collectors, replacement of condensing boiler, class A condensing boiler, heat and air generators, solar thermal, heat pumps for winter heating, hybrid systems, micro-generators, photovoltaic system, charging columns for vehicles, water heater, biomass heat generator, earthquake bonus, domotics (that manages the intelligence of the heating and cooling system, in recent years it has been encouraged at 50% since it is in the Home Bonus ).
WHO CONDUCTS THE WORK CAN DECIDE WHETHER :
- TO USE THE WORK IN COMPENSATION OF CREDITS
- OR TO TRANSFER THE CREDIT TO ANOTHER SUBJECT OR OTHER SUBJECTS WITHOUT ANY LIMITATION : he can transfer the credit to banks and to anyone several times . Please note that in the past it was possible to transfer the credit to a subject of the own supply chain only once; now it is possible to transfer the credit to anyone, all subjects included ( banking, insurance, financial bodies, multiutilities ), as often as you want . The subjects are interested in acquiring the credit for several reasons :
- Too taxes to pay
- Interest in building a relationship
- To enter the market .
The Italian Revenue Agency is completing the partial information about the transformation of the credit, through a measure .
OTHER GENERAL CONSIDERATIONS :
IMPLICATIONS ON THE SECTOR LINKED TO THE POLITICAL CHOICE
From a political point of view, a more specific scheme could be hypothesized, i.e. starting from buildings with lowest class, in order to reduce emissions and determine an improvement of energy efficiency, with greater impact in favour of situations with more pollution and energy leakage ; however, the same measure brings an advantage anyway, although distributed differently, allowing already high energy classes to improve their efficiency .
However this decree results in a race to building restoration for the heavy intervention through state incentives, with the risk of having medium-long time to carry out the work, because of the large number of work to be realized within the statutory period .
Therefore it is predicted operational and logistic stress on the building sector as a result of Ecobonus 110, and transversal skills must be hypothesized for a proper management of the commissions and the efficiency of the system .
The central issue is not just finding funds, but the know – how, the skills, the collaboration between installers and a coordination of activities are especially relevant for the effectiveness of the intervention, in terms of economic resources .
As mentioned above, the measure will have a big impact on the entire sector, and the credit matures at the end of the work, after checks, authentication, validation stamps . In order to do it, the companies need to obtain funding, especially if we talk about long – term work . In particular if the client decides to operate more complex interventions, considering that he won’t have to incur direct expenditures; consequently, he could carry out more important interventions such as a thermal coating, heat pump, fixtures, instead of replacing the boiler .
The 110% leap of the incentive is also aimed at impeding illegal work as much as possible, therefore in terms of promoting the emergence of undeclareted work .
The paperwork is not perfectly defined and it will be completed soon .
OPERATORS’ SKILLS AND KNOW – HOW :
If we talk about heat pump, photovoltaic is included, so it is a combination between thermal and electrical system ; therefore operators need to team and acquire the necessary skills . The thermal coating is not a usual construction work and a specialised company is required .
The restoration could have no cost for the client, and this may encourage him to include a thermal coating, a heat pump and a photovoltaic system in the energy retrofit and efficiency . All this demands specialist skills that can not be ignored to carry out the work .
The specialised operators and the service providers have to collaborate with vertical companies specialised in a field, operators with certificates, able to ensure :
- guarantees and experience to complete the work perfectly and professionally .
- in addition to the quality of systems / installations, the use of materials falling within minimum environenmental criteria is required ;
- it is necessary that installers have been properly trained by the producer about the materials used ;
- the quality of the service must be guaranteed for years, also considering the multiannual nature of the interventions .
EXAMPLES OF DIFFICULTIES IN THE INSTALLATION OF SYSTEMS :
- The correct collocation of the thermal coating is important : if it has been installed incorrectly, after 5 years it could unglue itself or it could determine the formation of condensations and mould on the north sides, resulting in disputes in construction . Moreover, the thermal coating implies the rebuilding of the facades, so an interdisciplinary intervention that can be complex in some cases .
- To adopt the technology through heat pump could cause inconveniences, in absence of proper distribution systems ; the heat pump could be not efficient in solving the problem and ensuring the desired comfort, if you use high temperature radiators and inadequate emyssion systems . The problems would be more solvable in a single-family house, whereas it would be more complex in a block of flats . Bear in mind that rebulding the distribution system of water means operating invasive interventions in almost the entire house .
SUMMARY OF 110% ECOBONUS, PROS AND CONS :
110 % Ecobonus contained in the “Decreto Rilancio” seems to be a very positive measure for the user who does not need to pay anything .
Expenditure ceilings are planned for each type of intervention and/or for housing unit, in order not to waste economic resources .
It has no income limit, for this it is a very expansive measure .
The company anticipates . Solid financial partnerships believing in the initiative are necessary for the implementation . The financial aspect becomes more important than the company or who conducts the work .
Some technologies are promoted .
Rise in prices can not be excluded both because the owner does not have to pay anything and because there are longer time and financial costs that can result in higher prices .
The cost of energy could increase too .
There are technical checks and a validation from the CAF (tax assistance centre) on the regularity of contributions and compliance with the various requirements . Therefore, in addition to a technical check, there is an administrative supervision . ENEA is supposed to do checks on site .
If you have taken advantage from this measure without then doing the work or respecting the statutory regulations, the requirement can be claimed with interest on the arrears, even with complications for the operator companies . If the company violetes or does not respect the rules, also the operator company is required to pay back with interest on the arrears . Moreover, the false declarations of the engineers are punished with sanctions; fines from 2,000 to 15,000 euro for each practice .
CONTACT US FOR MORE INFORMATION :
Please contact us to the following email if you are a building manager, a homeowner or a representative of various owners :
Thank you for your Collaboration!