Daikin Europe: Italian 'Superbonus' combines achieving European economic growth and hitting CO2 goals

"Italian 'Superbonus' will provide a blueprint for Europe and beyond," says Patrick Crombez, General Manager Daikin Europe Heating and Renewables

Brussels, 18 August 2020 - Italy's 'Superbonus' is one of the most ambitious heat pump installation scheme to date. According to Daikin, a global pioneer in heat pumps, the Italian initiative provides the perfect blueprint for other countries seeking to combine the decarbonization of homes with sustainable economic growth.

The 'Superbonus' forms a key plank of Italy's COVID-19 recovery plan, which combines economic growth with the decarbonization of residential homes. A tax credit for energy efficiency work carried out by homeowners (the 'Ecobonus') has been around for some time, but in July 2020 the Italian government decided to expand the scope of this existing initiative. This makes Italy's Superbonus one of the most ambitious heat pump installation scheme to date.

Daikin, a global pioneer in heat pump technology, welcomes Italy's commitment to introduce heat pumps in every part of Italian society and believes this will provide a promising blueprint for other governments trying to bring about a 'green' recovery in the post-COVID-19 world.

Patrick Crombez, General Manager Daikin Europe Heating and Renewables: "We welcome Italy's support for carbon-neutral heating in residential homes. Daikin's heat pumps are made in Europe and have massive sustainability benefits, ensuring that they are ideal for boosting the European economy and shifting the continent towards carbon neutrality. Heat pumps are ready for prime time, and this initiative will help consumers see that heat pumps are a viable option for new buildings and a replacement for fossil-fuel boilers."

What is Italy's Superbonus?

When purchasing a heat pump or another green energy source, Italians receive a refund from the government on the purchase price of their heating system. More specifically, consumers are granted a 110% refund on the purchase price of their heating system via five annual tax breaks.

For consumers who prefer an immediate payback, the Superbonus also gives Italians the option to:

·      Receive a discount of up to 100% on the purchase price of a heating system directly via the installer of the system, who in turn becomes the new bearer of the credit (and can apply for tax breaks)

·      Receive a refund of up to 100% via a “credit pass” to the installer of the heating system, a bank, or another 3rd party (in this case the credit is sold or passed to a new bearer)

Italy's Superbonus is a 'win-win' initiative for the Italian government and consumers alike. The financial benefits of the Superbonus are prompting Italians to install heat pumps, giving consumers easier access to sustainable and efficient heating, while the increased popularity of heat pumps and other sustainable heating systems (e.g. solar panels) means that the government is slashing the carbon output of Italy's residential sector and reducing the country's dependency on fossil fuels.

In the long term, the payback plan will help make sustainable energy solutions such as heat pumps the new norm in Italy. A large number of heat pump production facilities in Europe will pay dividends for the European economy as well as the environment. Daikin Europe alone has 14 production facilities in Europe, making every euro invested in heat pump technology an investment in local job creation and the further development of a growing and innovative industry.

Ready to go mainstream

Daikin Europe firmly believes that heat pumps are ready to go mainstream. The heat pump industry is doing its utmost to make its technology accessible by investing in new product features and user friendliness, among other things.

What is happening in Italy shows that governments can support the industry's initiatives by creating a climate in which it can flourish and drawing consumers' attention to sustainable heating solutions. The Superbonus encourages Italians to take a closer look at the ecological advantages and total cost of ownership of a heat pump vis-à-vis a traditional boiler. This gives consumers the final 'nudge' to consider sustainable alternatives to heating systems running on fossil fuels. Over time, countries will reap the rewards of their investments in a growing industry and in the environmental benefits of lower CO2 output.

Every year in May we will provide an update of this text.