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Energy Efficiency Grants in France 2021

The government have announced details of the new energy efficiency grants system for 2021.

As we signposted last month, the system of financial support for home energy conservation will change next year.

The tax credit (Crédit d’Impôt de la Transition Énergétique - CITE) that was previously used is being transformed into a grant, called Ma PrimeRénov.

In practical terms, this means that the money will be provided when the works have been completed, not, as previously, at the end of the tax year, following submission of your tax return.

The grants are also available to landlords and to apartment owners on a collective basis, whose grants are managed through the syndicat.

The government have stated that the new grant will be 'universal', but that is not entirely true as, depending on income, a sliding level of support applies, and beyond an income threshold many works are excluded.

Indeed, no grant at all is available for the installation of double glazing, beyond a token sum for insulation, presumably because the government considers that they do not need to provide incentives for this work.

In addition, a maximum level of support can only be obtained when the grant is combined with assistance under the complementary Certificats d’économies d’énergie (CEE) grant support programme for which a separate application is necessary.

That does complicate the process, and is likely to be a deterrent for many potential applicants.

Nevertheless, for a most households the effort is likely to be worthwhile as a generous level of support is available.

In introducing the scheme, the Minister of Housing, Emmanuelle Wargon, stated: "For those on the most modest incomes, assistance can be as much as 90%, then it drops to 75%, 60% and 40% for the most well-to-do households."

For example, for the installation of a pellet boiler the grant is up to €10,000 for those on the lowest incomes, decreasing to €8,000, then €4,000 and to zero for those on the highest incomes. In all cases, an additional grant of between €2,727 and €4,364 would also be available through a CEE grant.

A couple in the lowest income bracket, with an annual net income no greater than €21,760 (€30,225 in Ile-de-France), would be entitled to nearly €4,000 for the purchase and installation of a pellet stove and nearly €15,000 for the installation of a geothermal or solar heat pump.

The maximum level of grant assistance under Ma PrimeRénov is a substantial €20,000 per household, and even this limit can be increased by CEE grants.

Contrary to news reports we have seen on some English language news outlets and social media the new grant is not a 'home improvement grant'; there is a separate system in place for such grants, which you can read about at Guide to Home Improvement Grants.

You can find our complete guide to the new grants system at Guide to Home Energy Efficiency Grants.


Related Reading:

This article was featured in our Newsletter dated 10/11/2020





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