In recent years, the European Union has aimed to reduce energy consumption and the use of renewable energy sources in households and businesses, and for this reason it finances actions such as the "Save" program. Added to the big issue of climate change is the burden on consumers due to the energy crisis after the war in Ukraine. These major issues have led the government to new specialized programs for energy upgrading and energy saving, aimed at reducing consumption and supporting vulnerable households.
What are the programs that will be activated immediately?
- "I save for business"
- Inclusion of the runners-up in "Save at home 2021"
- New "Save at home"
- Mortgage loan of 100,000 euros for renovation
- Low interest loans for buying a home in areas with old buildings
- "Save and Renovate"
- "Save - Renovate for Young People"
- Coverage Program
- New "small and flexible" Save
- Tax exemption for building renovation
What applies to each program in detail?
1) "Save for business"
The platform is expected to go live in December.
The action will cover energy upgrades of buildings, energy upgrading of production processes, heat recovery systems, installation of "smart" energy systems, electric distribution vehicles, etc. Small and large businesses such as bakeries, confectioneries, micro-brewery and larger consumers will be eligible for a subsidy.
2) Inclusion of the runners-up in "Save at home 2021"
With a recent decision of the Minister of Energy, all 47,433 runners-up of "Excoionamo 2021" are included as in principle eligible for the program. Thus, the budget of "Excoonamo 2021" increases by 591.7 million euros and now amounts to a total of 1.2 billion euros.
3) New "Save at home"
The new "Save" will be announced in the coming months and applications are expected to take place in April 2023. The scheme will be open to owners of their main residence or a rented house used as a main residence.
Eligible expenses are:
- replacement of frames
- installing-upgrading thermal insulation
- heating / cooling system upgrade
- installation of domestic hot water systems using Renewable Energy Sources
- smart management systems (smarthome)
4) Mortgage loan of 100,000 euros for renovation
It concerns the granting of loans for the purchase or renovation of houses. The mortgage program will be targeted at young people up to 39 years old, students and young couples.
The 1.8 billion housing program is expected to be activated in December 2022 and will target over 100,000 beneficiaries in order to acquire or rent a cheaper home.
5) Low-interest loans for the purchase of housing in areas with old buildings
It concerns a special low-interest loan program of 500 million euros, with co-financing of 375 million from the state and 125 million from the banks.
The purpose is to ensure a very low interest rate, for the purchase of a first home by 10,000 citizens up to 39 years old, in areas where there are currently old buildings.
With this program, for example, a couple, with minimal participation, will be able to buy a house worth 100,000 euros and pay a monthly installment of 275 euros. An amount, that is, much less than the rent he would pay to rent a residence.
6) "Save and Renovate"
With this program incentives will be given to renovate old houses without excluding energy upgrading. Owners of vacant houses up to 100 sq.m. in urban centers they will receive a subsidy of up to 40% for renovation work on homes, (up to 10,000 euros) which must then be rented for at least three years. Beneficiaries will be those with a family taxable income of up to €40,000 and real estate up to €300,000. Bonuses will also be given to those who have less real estate and request less support than the maximum.
7) "Save - Renovate for Young People"
It is a program for the energy upgrade and renovation of homes for the new generation, from 18-39 years old. You estimate that more than 20,000 youth homes will be upgraded. The program includes two sections: "Save for Young" and "Renovate for Young".
A) In "Save for Young People" beneficiaries must have an annual family income of up to 50,000 euros. The property must be privately owned or occupied or, if the beneficiary rents it to third parties, have the usufruct of the property.
The eligible budget is up to 25,000 euros and thesubsidy rate ranges from 50% to 90%. To cover the same participation, an interest-free loan is provided.
Eligible interventions are the replacement of frames, external thermal insulation, heating-cooling systems, domestic hot water supply systems, smart home systems and household electrical appliances.
B) In "Renovate for Young People", which provides low-interest loans of up to 7,000 euros for home improvement works, the beneficiaries must meet the same income threshold as "Excoionamo", however an additional subsidy of 3,000 euros is provided for those with an annual family income of up to 20,000 euros.The property must be privately owned or occupied or if the beneficiary rents it to third parties have full ownership or usufruct of the property.
The eligible budget is up to 10,000 euros and the subsidy rate is 30% for everyone. To cover the same participation, a low-interest loan of up to 7,000 euros is provided. Accordingly, this program subsidizes the renovation of bathroom and kitchen spaces, the replacement of the entrance door, the replacement and repairs of electrical and plumbing installations, the replacement of floor surfaces, plastering and repairs of structural elements.
8) Coverage Program
The owners e.g. who will participate in the "Coverage" program will have guaranteed income from the rent paid by the state, for their homes, which will be made available to new beneficiaries of the Minimum Guaranteed Income. The state also undertakes the repairs.
9) New small and flexible "Save"
In the new program, which will be more reminiscent of "Recycle - Change Device", the weight will be given to as many households as possible to choose the replacement of old water heaters with solar ones. In this scenario, the subsidy can reach up to 1,000 euros depending on the income and social criteria to be announced, in order for a household to reduce its electricity consumption by 20%. At the same time, the scenarios for the subsidy for photovoltaic roofs and for the installation of heat pumps are also being considered.
10) Tax exemption for building renovation
Any natural person who carries out energy, functional and aesthetic upgrading of a property will be able to deduct 40% of the money he pays in each year from the income tax debts of the four years following the year of payment of the expenses. The upper limit for the amount of expenses is 16,000 euros, so the maximum amount of tax deduction that a property owner (e.g. residence, office, shop, etc.) will be entitled to in total over the four years will reach 6,400 euros (1,600 euros per year ).