Optimizing the distribution of Italian building energy retrofit incentives with Linear Programming

The goal of the research is to propose an optimization-based methodology for the evaluation of retrofit incentives, using as a benchmark the wide data collection reported by the ENEA Italian Agency since 2007. To determine the best mix of energy retrofit measures for different areas of Italy, two Linear Programming models are proposed. The first model maximizes energy savings and the second one minimizes retrofit costs. The results show a 17% reduction in the average cost for each MW h of saved energy. More importantly, the methodology can help decision-makers appreciate how energy efficiency incentives have been used so far and how effective they could be. Furthermore, the methodology can be used for setting future incentive distribution plans.