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Residential energy management provides various key benefits: cost optimisation, tax breaks, reduced environmental impact and increased property value.
What is residential energy management and what does it involve?
Residential energy management involves taking measures to increase the energy efficiency of existing buildings. The areas of Intervention usually regard systems that reduce heating and cooling energy requirements, thermal improvement through insulation, floors and windows, installation of solar panels, efficient lighting systems and home automation systems.
Environmental benefits
Most buildings were constructed before energy saving regulations came into force. According to ENEA [the National Authority for New Technologies, Energy and the Environment], (residential and non-residential) buildings are responsible for 40% of Italy’s air pollution, and MISE [the Ministry for Economic Development] estimates the residential sector is responsible for 45% of final energy consumption and 17.5% of direct CO₂ emissions.
Residential energy management is therefore obviously important and necessary to achieve the National Energy and Climate Plan (NECP) energy and emissions reduction targets, and it also provides economic and social benefits.
Potential measures: why to consider building automation
Residential energy management involves measures to reduce average domestic energy needs.
The Energy Performance Index (EPI) or Consumption Index, is the key metric used to assess a building’s energy efficiency: heating systems are measured during continuous operation (24h) and their efficiency is calculated in relation to the useful surface area (expressed in kWh/m² per year). The EPI considers the results to calculate how far energy waste can be reduced, rather than imposing requirements on the systems to be installed to achieve a value that complies with the legal standards.
Installing LED lights is one of the simplest, most straightforward upgrades, whereas installing an effective home automation system requires more detailed planning, although it can be implemented in several stages.
Building automation systems can also be implemented on various levels: from wired systems for more complex buildings to smart switches that require minimal or no masonry work in private homes. Smart homes are an excellent way to optimise energy consumption. Heating and cooling systems, lighting, electrical loads and heat loss can all be managed remotely to improve comfort and safety.
These and other measures, such as the installation of outdoor lighting systems for patios and gardens or to enhance buildings, are not subject to any building restrictions and therefore do not require permits or planning permission such as a CILA [Comunicazione Inizio Lavori Asseverata - Notice of the start non-structural work] or SCIA [Segnalazione Certificata di Inizio Attività - Certified declaration of the start of structural work].
Tax relief: residential energy management bonuses and regulations
Residential energy management is governed by a broad and complex set of regulations including European, national and regional provisions. The good news is that Italy has provided various financial incentives, mostly in the form of tax relief, for some time.
For example, LED lighting purchases for ordinary and extraordinary maintenance are tax-deductible: to claim the deduction, simply indicate the total expenditure in your Form 730 or Unified Tax Return. LED lighting products are covered by the ‘furniture bonus’, which allows you to deduct furniture and household appliance expenditure. For 2023 and 2024, the maximum amount has been reduced to €5,000.
As the regulations are complex and often updated in line with the budget laws, it’s best to consult the latest residential energy management information on the Italian Revenue Agency website. Here you can find information on how to claim tax deductions, which property development measures are covered and the rules governing applications. ENEA also regularly publishes annual reports on tax deductions and energy efficiency.
Property redevelopment describes the series of measures that can be implemented to improve a property’s market value, and reduce waste. Residential energy management is now a key aspect in increasing the value of a property. In many cases, residential energy management measures can increase a building’s commercial value and make less attractive properties more marketable.
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