The renewable energy market in Italy

The energy renovation market includes all activities, technologies and services aimed at improving the energy efficiency of buildings, both residential and nonresidential. This includes work on the building envelope (thermal coats, high-efficiency windows and doors), air conditioning and heating systems (heat pumps, condensing boilers), ventilation and air exchange systems, energy-efficient lighting, photovoltaic systems, and smart energy management solutions. The sector is closely linked to European and national goals on emissions reduction, ecological transition and housing sustainability, and is divided between public actors, construction companies, designers, technology providers and energy certification services.

At the European level, the market for energy efficiency in buildings is valued at more than 90 billion euros in 2023, with growth expected to exceed 150 billion in 2030. In Italy, the estimated value of the market exceeded 36 billion euros in 2022, thanks mainly to the boost of the 110% Superbonus, other tax incentives (Ecobonus, Bonus Casa, Conto Termico) and the progressive awareness of citizens. Between 2020 and 2022, there has been a +82% increase in energy upgrades, with an average expenditure per building of more than 550,000 euros in condominiums and about 115,000 euros in detached houses.

The structure of the Italian market involves many players: construction companies, installers, manufacturers of insulation materials and plant technologies, ESCo (Energy Service Companies), certifying technicians and designers. There are more than 48,000 companies active in construction sectors related to energy renovation, and hundreds of thousands of workersinvolvedin design, installation, management and verification activities. The supply chain has become progressively professionalized, partly in response to the complex procedures for accessing incentives and the growing demand for technical and digital skills.

Average prices for the most common interventions are, according to ENEA and industry sources, around:

Thermal insulation: 120-180 €/m² (depending on material and building type);

Window replacement: 500-900 € per window;

Air-to-water heat pump: 7,000-12,000 € installed;

Photovoltaic system with storage: 14,000-20,000 € for 6 kW + battery;

Controlled mechanical ventilation: 3,000-6,000 € for a 100 m² apartment.

The sector was strongly influenced by regulations and incentives, particularly the 110% Superbonus, which generated a boom between 2021 and 2022 but also showed critical issues related to fraud, blockages in credit transfer, and shortage of materials and qualified personnel. After the reshaping of the Superbonus and the transition to 90%, 70%, and lower schemes, the market is showing signs of readjustment, while maintaining high demand for leading and trailing interventions, especially in residential construction.

Challenges in the sector include simplification of procedures,access to credit, enhancement of the skilled workforce, and the need for an integrated approach between design, energy diagnosis, post-intervention monitoring, and smart energy management. There is growing interest in smart systems (home automation, building automation), LCA assessment of materials, and the role of energy certifiers in ensuring transparency and measurability of results.

From a regulatory point of view, the market moves within a multifaceted framework that includes: the EU Directive 2018/844 (EPBD), the PNRR (which allocates significant funds to building renovation), the Minimum Requirements Decree, and the implementation decrees for building bonuses. Regions also have competence in the management of energy registers, accreditation of certifiers, and control of APEs (Energy Performance Certificates).