Laws&Regulations - Casa Verde Program

The Casa Verde Program was initiated in Romania in 2010, and aims to reduce pollution by funding the installation of heating systems that use renewable energy. The goal is to replace the traditional methods (such as burning wood and fossil fuels) used to produce thermal energy for domestic use.

This program targets both individuals and legal entities (i.e. administrative units, public institutions and religious establishments). The funding for the Casa Verde Program is provided by the Environmental Fund. The Casa Verde Program will receive funding amounting to 735 billion RON for 2011.

Until now, the Casa Verde Program has proven to be a success. Over 2,000 of the submitted projects are already receiving funding since its initiation in July, 2010. For 2010, the budget for this program amounted to 110 billion RON.

Casa Verde Program for Natural Persons

•    Casa Verde Program beneficiaries

The Casa Verde Program is intended only for the benefit of natural persons living in Romania who own the property where the heating systems are to be installed. The property in question must not be the subject of pending litigation, restitution claims or expropriation proceedings.

•    Projects funded through Casa Verde Program

Through the Casa Verde Program, funding is granted for the installation of new heating systems using renewable energy (e.g. the installation of solar panels; the installation of heat pumps; heating units fueled with vegetable/agricultural/forestry waste and residues), but also for replacing/supplementing conventional heating systems.

An applicant may only submit, during a session of funding, a single project, but two types of the abovementioned installations may be included within the same project.

•    Funding award procedure

If the funding file is approved, a funding agreement is signed between the applicant and the Environmental Fund Administration, valid until the completion of the project for the installation of renewable energy systems, not to exceed more than 12 months from its signature date.

The funding awarded shall be returned if the funded project (i) is not used according to its established goal, or (ii) is sold, during the project’s development or within one year of its completion.

•    Eligible expenses in the Casa Verde Program

Funding from the Casa Verde Program covers the amount spent by the beneficiary for:

a.   The purchase of equipment necessary for new renewable energy systems or for replacing/supplementing traditional systems;
b.    The installation and commissioning of the system;
c.    The Value Added Tax (VAT).

•    The amounts granted to the individual beneficiary

The amounts granted to Casa Verde Program beneficiaries is fixed, depending the type of heating system installed:

a.    Up to 6,000 RON for installing solar panels;
b.    Up to 8,000 RON for installing heating pumps;
c.    Up to 6,000 RON for heating units fueled with vegetable/agricultural/forestry waste and residues.

The amount approved cannot be supplemented, the beneficiary must ensure the completion of the project from his or her own resources.


Casa Verde Program for Legal Entities

Administrative-territorial units, public institutions and religious establishments can be beneficiaries of the Casa Verde Program for legal entities.

Unlike the program for natural persons, certain scoring scales are used for the assessment of the funding file, taking into account, among other things, the cost-benefit ratio of the project proposed for funding.

For legal entities, funding for renewable energy systems is granted as a percentage and not a fixed sum, amounting to 90% of the total cost of the project; however, this amount cannot exceed 2 billion RON.

The official name of the program is "Program for the Installation of Heating Systems Using Renewable Energy, including Replacing or Supplementing Traditional Heating Systems", the program being popularly called “Casa Verde”.

Legal basis:
•    Order of the Minister of Environment and Forestry no. 950 of June 17,  2010 approving the Funding Guide of the Program for the Installation of Heating Systems Using Renewable Energy, including Replacing or Supplementing Traditional Heating Systems;
•    Order of the Minister of Environment and Forestry no. 1223 of August 11, 2010 amending the Funding Guide of the Program for the Installation of Heating Systems Using Renewable Energy, including Replacing or Supplementing Traditional Heating Systems, approved by Order of the Minister of Environment and Forestry no. 950/2010;
•    Order of the Minister of Environment and Forestry no. 1741 of  October 20, 2010 approving the Funding Guide of the Program for the Installation of Heating Systems Using Renewable Energy, including Replacing or Supplementing Traditional Heating Systems – beneficiaries: administrative units, public institutions and religious establishments.

Cristina Daianu, Managing Counsel                Diana Poputoaia, Associate   

This text is intended for informational purposes only. It is not intended to be used as legal advice nor is it an exhaustive presentation of the issues reviewed herein, as Salans company is not to be held liable in any way for any failure to implement or implementation of the above. For specific legal issues, we hereby recommend a case-by-case consultation.