Collective Ownership Group (AUC): what is it?

Collective Ownership Group (AUC): what is it?

A collective self-consumption group (AUC) is formed when two or more self-consumers equip themselves to produce and share energy from renewable sources. It is a system designed primarily for apartment blocks: AUC members are residential users or businesses in the same building or apartment block and share energy virtually.
Like for the Renewable Energy Communities a collective self-consumption group guarantees:

  • Environmental benefits: by producing electricity from photovoltaic systems, the emission of CO2 and other pollutants (such as NOx and SOx) into the atmosphere is avoided. In addition, energy efficiency can be increased through a progressive process of electrification of usage in the entire building/condominium.

  • Economic benefits: the incentive system makes it even more convenient to set up as an AUC group. Specifically, the GSE incentive provides 100 euro/MWh* plus about 9 euro/MWh for shared energy for a period of 20 years, plus the market value of surplus energy fed into the grid.

*As per Art. 42-bis of DL Milleproroghe 2020 of 30 December 2019, no. 162. The official decree by the Ministry of the Environment and Energy Security is currently awaiting publication.

What is the difference between collective self-consumption and energy communities?

Energy Communities (CER) bring together a number of actors capable of self-producing energy using installations that are close to each other, but not necessarily installed in the same building.
Collective self-consumption, on the other hand, concerns a building or apartment block with renewable installations: the energy produced can be shared among the apartment blocks or co-owners, but only at the specific location where it is generated.
For the purpose of access to incentives, CER installations must be connected to the same primary substation as the final customers who are part of the configuration, and can have a capacity of no more than 1 MW.
A collective self-consumption group (AUC) is easier to set up than a CER: in fact, all that is needed is a decision from the apartment block meeting, through which the block itself, as a legal entity, can effectively set up the self-consumption group, manage the installations and receive the incentives.
The regulations and steps are streamlined, also facilitated by the fact that the work involves only one apartment block, allowing all participants to benefit from the many advantages of an AUC right from the start.
At a later stage, the AUC may become an ERC or join an existing ERC . Prior to the entry of these entities into the Energy Community, however, the configuration of Collective Self-consumption will have to be dissolved. In perspective, a Renewable Energy Community generates greater benefits than a group of AUCs.

What are the benefits for an apartment block forming a collective self-consumption group (AUC)?

An apartment building that forms a collective self-consumption group (AUC) can enjoy several benefits:

  • Savings on power bills: with a group of AUCs, savings can be made on annual household bills;

  • Economic benefits: possibility of remuneration thanks to state incentives and reduced expenditure for the installation of a photovoltaic system thanks to tax incentives.

  • Increase in the value of the property: due to the improved energy class of the building, the value of the property may increase compared to an equivalent non-renovated property;

  • Reduced environmental impact: reduced consumption ensures reduced emissions of CO2 and other pollutants.