Latest eco-incentive 2025: changes in the incentive for environmentally friendly residences

The government is working on a revision of the eco-incentive for 2025: the primary focus of the new policies will be primary residences, homes with low energy ratings, and owners with limited incomes. Excluded from the program are high-end properties, outdated technologies, and specifically the option to transfer the credit, which has caused significant issues with the previous super incentive. Let's explore the main points of the 2025 eco-incentive revision.

With the release of the Government’s Structural Budget Plan (Psb), the Environment Ministry, in response to a parliamentary inquiry, disclosed various specifics regarding the upcoming 2025 eco-incentive in anticipation of the next Budget Law. Following the expiration of the current incentives by December 31, 2024, which no longer comply with the standards of the tax incentive review from Brussels, the new eco-incentive will be more efficient and will concentrate on energy upgrades where necessary.

Main features of the new eco-incentive:

Ten-year validity period

The incentive will remain active for a minimum of 10 years to meet the residential sector goals established by the Epbd (Green Homes Directive) by 2035. Consequently, the enhancement of residential structures should result in a 16% reduction in energy consumption by 2030 and a 20-22% decrease by 2035.

Elimination of broad discounts

Tax benefits will no longer be universally applicable but will be restricted to specific cases. Priority will be given to properties outlined in the Green Homes Directive, such as primary residences, energy-efficient constructions, and cases of energy poverty, while excluding luxury properties (e.g., mansions and estates) and technologies prohibited by EU regulations, like gas heating systems.

Gradual advantages

The plan envisions "reduced benefits for individual actions and increased benefits based on the achieved energy efficiency." In other words, the more intricate and comprehensive the energy efficiency enhancements are, the greater the benefits obtained.

Discontinuation of credit transfer and deductions on bills

These methods will no longer be utilized due to past issues. The question arises as to what will take their place: financial aid mechanisms, favorable loans, and collaborations with the National Energy Efficiency Fund will be necessary. One potential solution could involve advantageous "green" mortgages backed by a government fund, akin to Consap mortgages and mortgage guarantees for individuals below 36 years old.