Transition 5.0: what it is and what it involves

The Transition 5.0 Plan is a measure for the digital transformation and sustainability of Italian companies. Financed by EUR 6.36 billion in PNRR funds, it complements the Industry 4.0 Plan by enriching it with three key concepts: sustainability, resilience and the centrality of the individual.

The measure supports the transition of production processes to an efficient, sustainable and renewable energy model, with the aim of achieving energy savings of 0.4 million tonnes of oil equivalent in the period 2024-2026. The target of the measure is to support the digital and energy transition process for business, facilitating investments made in production facilities located in Italy in the years 2024-2025 as part of innovation projects resulting in a reduction in energy consumption.

The allocation is broken down as follows:

• Tangible and intangible assets: EUR 3.78 billion;
• Self-production and self-consumption from Renewable Energy Sources: EUR 1.89 billion;
• Training: EUR 630,000.

Eligible investments

Eligible investments concern tangible and intangible assets, which are new and instrumental to business operations.

The tax benefit is linked to the reduction of final energy consumption (at least 3%) at site level, or to energy savings on the individual process (at least 5%) due to investments belonging to the Industry 4.0 Plan, including:

• Assets with operation controlled by computerised systems and/or managed through appropriate sensors and drives;
• Systems for quality assurance and sustainability;
• Devices for human-machine interface and for improving ergonomics and safety in the workplace in 4.0 logic;
• Programs and applications purchased by companies (such as software, systems and system integration);
• Supply chain management systems aimed at drop shipping in e-commerce;
• Software, platforms and applications for logistics management, and coordination with service integration features;
• Software and digital services for immersive, interactive and participatory use, 3D reconstructions, augmented reality.

The reduction is to be calculated on an annual basis with reference to the energy consumption recorded in the financial year preceding that in which the investments are made, net of variations in production volumes and external conditions affecting consumption.

At present, within our portfolio of integrated solutions, as a leading intervention and after individual assessment of feasibility and applicability, we believe we can include Save Up, one of the Power Quality solutions. Driven interventions, on the other hand, may include photovoltaics and battery energy storage systems (BESS) and process heat energy production systems. To gain access to the latter, a reduction in consumption must be achieved in advance.
 

The role of Enel

Enel helps manage the complexity of the procedures to access the Transition 5.0 Plan, supporting companies through a network of selected partners, from the management phase of the incentive process to the implementation of the interventions, simplifying the management of the entire process for the customer. We are ready to support our customers on the path to sustainability. Choose Enel to get more information and invest in your business.
 

Who can participate?

This measure makes tax credits available to companies - of any size, legal form, sector and geographical location - that invest in tangible assets (compulsorily new and purchased from suppliers established in Italy) or intangible assets in order to reduce their energy consumption.

The tax credit, in relation to investments made between 1 January 2024 and 31 December 2025, is offered to companies that invest in digital activities, self-production of energy from renewable sources and staff training, and increases based on certified energy efficiency improvements. Projects must be certified by an independent auditor, with ex ante and ex post certification.

Companies in a state of bankruptcy, voluntary liquidation, compulsory administrative liquidation, composition with creditors and recipients of disqualification sanctions are excluded from the benefit, pursuant to Legislative Decree No. 231 of 8 June 2001.
 

How to take part

To be eligible for the tax credit under the Transition 5.0 Plan, companies will have to submit an online application using the standardised form made available by the Energy Services Manager (GSE) and the documentation prescribed by Article 38 of Decree Law 19/2024 (Transition 5.0 Decree), together with communication of the description and cost of the investment project.

Companies will present:

• Ex-ante communication (credit reservation) with a description of the investment project and its cost;
• Ex-ante certification, certifying the reduction in energy consumption achievable through investments in assets.

With the approval by the Chamber of Deputies of the bill converting Decree-Law No. 39 of 29 March 2024, which took place on 22 May 2024, it was also established that within 30 days of the confirmation of the reservation by the GSE, companies must notify the execution of the orders accepted by the seller, through the payment of a deposit of at least 20% (both for the driving assets and the renewable component), under penalty of forfeiting the benefit.

Each month, the GSE transmits the list of applicant companies and the amount of credit engaged to the Ministry of Enterprise and Made in Italy, verifying the capacity of the funds. The companies on the other hand, send regular communications to the GSE on the progress of the investment, based on which the amount of the tax credit that can be used is calculated up to the maximum amount booked. At this point, it is the GSE, once it has verified the formal correctness of all the documentation, that transmits the list of companies eligible for the facility to the to MIMIT .

With regard to the use of the tax credit, however, companies must submit the following to the GSE electronically:

• Ex-post communication with respect to the completion of investments;
• Ex-post communication certifying the actual implementation of the investments in accordance with the ex-ante certification.

All certifications, both ex-ante and ex-post, can be performed by EGE (Experts in Energy Management) certified UNI CEI 11339 and ESCo (Energy Service Company) certified UNI CEI 11352. For SMEs, the expenses incurred to fulfil the certification obligation are recognised as an increase of the tax credit by an amount not exceeding EUR 10,000.
 

Rates

The percentage rates of the 2024 and 2025 tax credit, applicable according to investment volumes and energy-saving results, are as follows.

The approved amendments introduce for storage systems and photovoltaics an expenditure limit. The limit will be laid down in the implementing decrees and will impose a proportionality between the energy supplied and the rebate on expenditure. A higher power output of the photovoltaic system will correspond to a higher limit on the expenditure allowance.