Industry 5.0 Transition Plan
Industry 5.0 Transition Plan
Last update: March 6, 2024
FROM INDUSTRY 4.0 TO TRANSITION 5.0: DIGITAL EMBRACES ENVIRONMENTAL SUSTAINABILITY
The Italian Government launched a new Transition 5.0 Plan, which represents a significant opportunity for growth and innovation for manufacturing companies. To fully leverage the benefits of the project, businesses must be able to rely on reliable partners capable of enabling change.
We’re here, let’s work together!
Our extensive experience in 5.0 technologies, combined with the products and solutions we develop, is a tangible added value for embarking on a successful path of change.
We can support your company in investing in Italy and working as partners with an Industry 5.0 perspective.
For any information, we are at your disposal.
On February 26th, the Italian Council of Ministers approved the PNRR decree-law, “Further urgent provisions for the implementation of the National Recovery and Resilience Plan,” which introduces the new Transition 5.0 Plan.
The Transition 5.0 Plan has a total allocation of 6.3 billion euros and is strongly oriented towards ecological transition and energy efficiency.
The plan targets companies making new investments in production facilities in Italy as part of innovation projects aimed at reducing energy consumption.
Access conditions to incentives
Three main conditions are required:
- Investment in at least one of the instrumental assets – both tangible and intangible – listed in Annexes A and B of the Transition 4.0 Plan (available at the bottom of the page). These assets must be interconnected with the company’s production management system or supply chain
- The assets must be part of an innovation project aimed at reducing energy consumption
- The reduction in consumption must be at least 3% of the consumption of the production facility located in Italy, or at least 5% of the consumption of the processes affected by the investment
It is important to emphasize that Annex B has been expanded compared to the Transition 4.0 plan. Incentives are indeed provided for software, systems, platforms, or applications:
- For continuous monitoring or visualization of energy consumption
- For the collection and processing of data from sensors
RETUNER®: THE COMPLETE PRODUCT SUITE FOR INDUSTRY 5.0 PROJECTS OF MANUFACTURING COMPANIES
All products in the Retuner® Suite meet the criteria for accessing the benefits of both the Transition 4.0 Plan and the new Transition 5.0 Plan.
4.0 incentives vs. 5.0 incentives
The Transition 5.0 Plan specifies that investments in 4.0 assets are included in the new plan if they enable energy efficiency. They remain part of the previous plan if they do not have an effect on energy consumption or if the effect is below the specified thresholds.
FROM INTERCONNECTION TO ENERGY CONSUMPTION MONITORING
The basic condition for accessing the benefits of the new Transition 5.0 Plan continues to be the interconnection between machines, plants, and corporate ICT systems. This enables the establishment of a database for measuring the achievement of energy efficiency goals before and after interventions. Thanks to the high flexibility of the RETUNER® architecture, its components are modular and highly interoperable with existing ICT systems in the company.
Tax rates
The program includes nine tax rates distributed as follows:
Reduction in consumption between 3% and 6%*
- 35% for investments up to 2.5 million euros
- 15% for investments exceeding 2.5 million euros but less than 10 million euros
- 5% for investments exceeding 10 million euros up to the maximum limit of eligible costs, amounting to 50 million euros per year per single company
Reduction in consumption exceeding 6%
- 40% for investments up to 2.5 million euros
- 20% for investments exceeding 2.5 million euros but less than 10 million euros
- 10% for investments exceeding 10 million euros up to the maximum limit of eligible costs, amounting to 50 million euros per year per single company
Reduction in consumption exceeding 10%*
- 45% for investments up to 2.5 million euros
- 25% for investments exceeding 2.5 million euros but less than 10 million euros
- 15% for investments exceeding 10 million euros up to the maximum limit of eligible costs, amounting to 50 million euros per year per single company
WE HELP YOU BUILD YOUR ENERGY CONSUMPTION MONITORING SYSTEM
xMES, our Extended Manufacturing Execution System, integrates energy consumption monitoring and all parameters contributing to building corporate ESG within its functionalities.
* The data refers to the consumption of the production facility located within the national territory. In case the parameters refer to the energy consumption of the processes affected by the investment, the corresponding values are 5%, 10%, and 15%, respectively.e 15%.
Methods of calculating energy savings
The guidelines contained in the Transition 5.0 Plan indicate the following methods for calculating the reduction in consumption:
- Reallocate calculations on an annual basis.
- Refer to the energy consumption recorded in the fiscal year prior to the initiation of investments.
- The consumption savings must be “net of variations in production volumes and external conditions that affect energy consumption.”
For newly established businesses, the achieved energy savings must be calculated “relative to the average annual energy consumption attributable to a counterfactual scenario, identified according to the criteria defined in the decree referred to in paragraph 17.” Average reference numbers are provided for the different scenarios, based on which to calculate the energy savings resulting from the investment.
MEASURE AND IMPROVE THE ENERGY EFFICIENCY OF YOUR PRODUCTION PROCESSES
With xMES, data collected from the field, certified and normalized in real-time, can be analyzed according to the Energy dimension, and through drill-down techniques, define the energy consumption of each process and for each individual product.
Energy consumption thus becomes a monitored and traced variable for every production and product. The integral calculation between energy consumed and quantity of product obtained in each process allows measuring the trend of energy consumption per equivalent production.
Incentives for self-production and self-consumption
The 5.0 plan includes a specific line dedicated to self-production and self-consumption systems for energy. Investments must be part of an innovation project involving the purchase of instrumental goods.
The tax credit concerns renewable energy sources, except for biomass, and includes storage systems. Incentives for photovoltaic panels are limited to installations based on panels manufactured within the European Union with efficiency equal to or greater than 21.5%.
Two additional increases are provided for:
- +120% for photovoltaic modules made in the EU with cell efficiency of at least 23.5%
- +140% for photovoltaic modules made in the EU composed of bifacial silicon heterojunction or tandem cells, with cell efficiency of at least 24%
The increases are not limited to the purchase cost of the modules but are extended to the cost of the entire system.
Incentives for training
Regarding personnel training, expenses aimed at acquiring or consolidating skills relevant to the digital and energy transition of production processes are eligible. There is a limit of 10% of the investments made in instrumental goods and up to a maximum of 300,000 euros.
The required documentation
Companies wishing to benefit from incentives must provide the following documentation:
- Certification ex ante
- Communication ex ante to the GSE (Energy Services Manager)
- Update communications on the progress of investments
- Certification ex post
- Communication ex post to the GSE
- Attestation of successful interconnection
- Documentation of the appropriateness and relevance of incurred expenses
- Accounting certification – by the auditor – attesting to the actual incurring of expenses and their correspondence to the accounting documentation provided by the company
Companies that are not legally required to have a statutory audit can add 5,000 euros to the tax credit to offset the impact of the expense. Additionally, for SMEs, it is possible to add to the tax credit the expenses incurred for certification, up to a maximum of 10,000 euros.
The ex ante certification must attest to the reduction in energy consumption that can be achieved through investments in instrumental assets. The ex post certification, on the other hand, must attest to the actual implementation of the investments.
WITH OUR PARTNERS, WE GUIDE YOU IN ACCESSING THE BENEFITS OF THE TRANSITION 5.0 PLAN
Our role does not “merely” involve offering products and solutions for Industry 5.0. We work alongside our clients with a consultative approach, allowing us to identify improvement actions throughout the value chain. And we have specialized partners who can accompany you in accessing the benefits of the Transition 5.0 Plan.
How to obtain incentives
The mode of utilization is the classic F24 model submitted digitally to the Agenzia delle Entrate. The deadline for obtaining incentives is December 31, 2025.
On the monitoring and control front, the Energy Services Manager is responsible for verifying the completeness of the documentation and transmitting to the Ministry both the list of companies that have correctly requested to take advantage of the facilitation and the amount of the credit.
The “winning” companies are obligated to send periodic communications to the GSE on the progress of the investment. Based on these communications, the amount of the tax credit that can be used is determined. Upon completion of the investment, the company must send the GSE the completion communication of the investment with an attached ex-post certification.
The GSE transmits to the Agenzia delle Entrate the list of beneficiary companies and the amount of the tax credit that can be used in compensation. After five days from the transmission of the data by the GSE to the Agenzia delle Entrate, companies can submit – by December 31, 2025 – the F24 form for the use of the credit.
Transfer of assets
It is important to remember that, as reiterated by the decree, “if the facilitated assets are transferred to third parties, intended for purposes unrelated to the business operation or destined for production facilities different from those that have qualified for the incentive, even if owned by the same entity, as well as in the event of failure to exercise the option for redemption in the case of assets acquired through financial leasing, by December 31st of the fifth year following the completion of the investments, the tax credit is correspondingly reduced by excluding from the original calculation base the related cost.”
LET’S RECONNECT MANUFACTURING COMPANIES TO THE SCORE OF INDUSTRY 5.0
With the Transition 5.0 Plan, companies can grow along the path of digital transformation. We’re here, working together!
Annex A
Instrumental goods controlled by computerized systems and/or managed through appropriate sensors and actuators
- Machine tools for material removal
- Machine tools operating with lasers and other energy flow processes (e.g., plasma, waterjet, electron beam), electroerosion, electrochemical processes
- Machines and plants for the production of products through the transformation of materials or raw materials
- Machine tools for the plastic deformation of metals and other materials
- Machine tools for assembly, joining, and welding
- Machines for packaging and packaging
- De-production and re-packaging machine tools to recover materials and functions from industrial waste and end-of-life products (e.g., disassembly, separation, crushing, chemical recovery machines)
- Robots, collaborative robots, and multi-robot systems
- Machine tools and systems for conferring or modifying the surface characteristics of products and/or functionalizing surfaces
- Additive manufacturing machines used in industrial settings
- Machines, including motorized and operating machines, tools, and devices for loading/unloading, handling, weighing, and/or automatic sorting of parts, automated lifting and handling devices, AGVs and flexible conveying and handling systems, and/or equipped with part recognition (e.g., RFID, vision systems, and mechatronics)
- Interconnected automated warehouses to factory management systems
Systems for quality and sustainability assurance
- Coordinate and non-coordinate measurement systems (contact, non-contact, multi-sensor, or based on three-dimensional computed tomography) and related instrumentation for verifying the micro and macro geometric requirements of the product at any level of dimensional scale (from large scale to micro-metric or nano-metric scale) in order to ensure and trace product quality and qualify production processes in a documentable manner connected to the factory information system.
- Other in-process monitoring systems to ensure and trace product and/or production process quality, qualifying production processes in a documentable manner connected to the factory information system.
- Systems for inspection and characterization of materials (e.g., material testing machines, machines for testing manufactured products, non-destructive testing/inspection systems, tomography) capable of verifying the characteristics of materials entering or exiting the process and constituting the resulting product at the macro level (e.g., mechanical characteristics) or micro level (e.g., porosity, inclusions) and generating appropriate test reports to be inserted into the company’s information system.
- Intelligent devices for testing metal powders and continuous monitoring systems that qualify production processes through additive technologies.
- Intelligent and connected systems for marking and traceability of production batches and/or individual products (e.g., RFID – Radio Frequency Identification).
- Monitoring and control systems for machine operating conditions (e.g., forces, torque, and machining power; three-dimensional wear of onboard tools; status of machine components or sub-assemblies) and production systems interfaced with factory information systems and/or cloud solutions.
- Tools and devices for labeling, identification, or automatic marking of products, with connection to the product code and serial number itself to allow maintainers to monitor the consistency of product performance over time and to act on the design process of future products synergistically, enabling the recall of defective or harmful products.
- Intelligent components, systems, and solutions for managing, efficiently using, and monitoring energy and water consumption and reducing emissions.
- Filters and treatment and recovery systems for water, air, oil, chemicals, powders with signaling systems for filtering efficiency and the presence of anomalies or substances foreign to the process or hazardous, integrated with the factory system and capable of alerting operators and/or stopping machine and plant activities.
Devices for human-machine interaction and for improving ergonomics and workplace safety in Industry 4.0 logic
- Workbenches and workstations equipped with ergonomic solutions capable of automatically adapting to the physical characteristics of operators (e.g., biometric characteristics, age, presence of disabilities)
- Systems for lifting/translating heavy parts or objects exposed to high temperatures that facilitate the operator’s task in an intelligent/robotized/interactive manner
- Wearable devices, communication equipment between operators and the production system, augmented reality, and virtual reality devices
- Intelligent human-machine interfaces (HMI) that assist the operator in terms of safety and efficiency of processing, maintenance, and logistics operations
Annex B
Intangible assets (software, systems and/system integration, platforms, and applications) connected to investments in tangible Industry 4.0 assets
- Software, systems, platforms, and applications for the design, definition/qualification of performance, and production of artifacts in unconventional or high-performance materials, enabling 3D design, modeling, simulation, experimentation, prototyping, and simultaneous verification of the production process, product, and its characteristics (functional and environmental impact) and/or digital and integrated archiving in the company’s information system of product lifecycle information (EDM, PDM, PLM systems, Big Data Analytics)
- Software, systems, platforms, and applications for the design and redesign of production systems that take into account material and information flows
- Decision support software, systems, platforms, and applications capable of interpreting data analyzed from the field and displaying specific actions to operators online to improve product quality and production system efficiency
- Production management and coordination software, systems, platforms, and applications with high integration features for service activities such as factory logistics and maintenance (e.g., intra-factory communication systems, fieldbus systems, SCADA systems, MES systems, CMMS systems, innovative solutions with IoT and/or cloud computing characteristics)
- Monitoring and control software, systems, platforms, and applications for machine working conditions and production systems interfaced with factory information systems and/or cloud solutions
- Virtual reality software, systems, platforms, and applications for realistic study of components and operations (e.g., assembly), in immersive or visual-only contexts
- Reverse modeling and engineering software, systems, platforms, and applications for the virtual reconstruction of real contexts
- Software, systems, platforms, and applications for communication and sharing of data and information both among themselves and with the environment and surrounding actors (Industrial Internet of Things) through a network of interconnected intelligent sensors
- Dispatching software, systems, platforms, and applications for task dispatching and product routing in production systems
- Quality management software, systems, platforms, and applications at the production system level and its processes
- Software, systems, platforms, and applications for access to a virtualized, shared, and configurable set of resources supporting production processes and production management and/or supply chain (cloud computing)
- Industrial analytics software, systems, platforms, and applications for processing and analyzing big data from IoT sensors applied in industrial environments (Data Analytics & Visualization, Simulation, and Forecasting)
- Artificial intelligence & machine learning software, systems, platforms, and applications that enable machines to exhibit intelligent abilities and/or activities in specific fields to ensure the quality of the production process and reliable operation of machinery and/or equipment
- Automated and intelligent production software, systems, platforms, and applications characterized by high cognitive capacity, interaction, adaptation to the context, self-learning, and reconfigurability (cybersystem)
- Software, systems, platforms, and applications for the use along production lines of robots, collaborative robots, and intelligent machines for worker safety and health, final product quality, and predictive maintenance
- Augmented reality management software, systems, platforms, and applications through wearable devices
- Software, systems, platforms, and applications for devices and new interfaces between man and machine that allow the acquisition, conveyance, and processing of information in vocal, visual, and tactile formats
- Plant intelligence software, systems, platforms, and applications that guarantee mechanisms for energy efficiency and decentralization where production and/or energy storage can also be delegated (at least partially) to the factory
- Network, data, program, machinery, and plant protection software, systems, platforms, and applications from attacks, damages, and unauthorized access (cybersecurity)
- Virtual industrialization software, systems, platforms, and applications that, by virtually simulating the new environment and loading information onto cyber-physical systems after all verifications, avoid hours of testing and downtime along real production lines
- Supply chain management systems for drop shipping in e-commerce
- Digital software and services for immersive, interactive, and participative consumption, 3D reconstructions, augmented reality
