Energy Communities have a variety of ways to finance themselves and get their project started, including raising capital among their members or locally, accessing bank credit or participating in public or private foundation calls. You can also combine these different forms of financing to find the best solution to meet the needs and pursue the goals of your Energy Community.
The main costs include the construction of the renewable energy facilities and the establishment and start-up of the legal entity (which will be an association, cooperative, holding foundation, …).
Direct Financing
Crowdfunding
Energy Communities can launch crowdfunding campaigns, to raise widespread capital, including by relying on one of several available platforms. The Community in this way can structure fundraising campaigns with timing, forms of contribution and return to funders determinable by the members themselves. The ERC can also take advantage of this possibility to reach out to citizens and businesses outside the Community, who can espouse the project’s goals and fund its activities, even though they may not fall within the ERC’s perimeter. These are the cases of stakeholders who, however, do not have utilities within the primary reference cabin or are entities excluded from the regulations, such as large enterprises or companies that sell energy.
Bank credit
Energy Communities can apply for financing by turning to the banks and lending institutions, which are developing ad hoc proposals to support RECs. In this case, the Community will certainly need to develop a structured and well-detailed proposal to present to the chosen bank, which will assess the soundness of the project in order to approve the financing to the Energy Community. In this case, it will be important to consider the financing costs (such as interest rates, commission fees, …) within the operating expenses of the ERC, so that the economic viability of the project can be verified.
Government funding
To date, the Lazio Region has provided a public notice for “Investment Support for Renewable Energy Communities” by providing a non-repayable grant to finance the installations of RECs located in the region.
Roma Capitale has active the Territorial Desk for Microcredit., with the aim of offering financing with lowered interest rates. Energy Communities in cooperative form can fall within the parameters of this form of support.
To receive information and to initiate paperwork, those interested in Entrepreneurial Microcredit and Social Microcredit should contact the Desk exclusively by telephone, through the contact center ChiamaRoma 060606.
For Energy Communities operating as cooperative enterprises, it is also possible to refer to proposals from public bodies and national agencies dedicated to development. These include the Italy Social Economy call for proposals, an incentive from the Ministry of Enterprise and Made in Italy aimed at companies that carry out activities of social utility and general interest, the management of which is entrusted to Invitalia. Among the criteria for accessing the call is the enhancement and protection of the environment, which Energy Communities have among their prerequisites.
Funding from private foundations
Finally, we recall that there are several private foundations that are activating calls for proposals and providing grants directly to Energy Communities for their start-up and for the costs of setting up the facilities.
Energy Bank Foundation
It was established with the aim of supporting individuals and families in economic and social hardship by implementing projects related to combating energy poverty. Among them, the implementation of Renewable and Solidarity Energy Communities (RESCs) are one of the main activities that the Energy Bank has developed to concretely help vulnerable people.
Charlemagne Foundation
Has non-profit humanitarian purposes. It was founded with the intention ofextending social solidarity to ensure the full dignity of the person. From 2020, with the program for Rome Periferiacapitale, intervenes in all city municipalities where community processes, activism, volunteerism and civic participation can be stimulated, including Renewable Energy Commons.
Ethical Finance Foundation
Promotes the principles, best practices and developments of ethical finance and social and solidarity economy and that supports Solidarity Renewable Energy Communities through a grant for feasibility studies and business plans.