News Archive: Financial Assistance for Energy Efficiency 2019

Some changes have been introduced this year to the system of tax credits and grants for energy conservation works to the main home.

Tax Credit

The main form of assistance continues to be the tax credit, called the Crédit d’Impôt de la Transition Énergétique (CITE). It is available without means-testing.

The assistance comes in the form of a grant for those who do not pay income tax, or whose income tax bill is less than the amount of the tax credit.

The single rate for the tax credit of 30% of eligible works has been maintained, although the installation double glazing is at the rate of 15%, up to a maximum of €100 per window.

There is also now assistance for the cost of removing an oil fired boiler at the rate of 50%, although it is means-tested. There is also other assistance available to households on a low-income as we set out below.

The maximum expenditure for one person is €8,000 and €16,000 for a couple, which is increased by €400 for each additional person in the household.

This means that the maximum tax credit is €2,400 for a single person and €4,800 for a couple.

Boiler Replacement

On a means-tested basis it is possible to obtain 100% financial assistance for the replacement of an oil or gas-fired boiler for a sustainable form of heating, such as heat pump or a condensing boiler, wood burner or solar heating. The assistance is a maximum of €4,000.

It has has been available under a programme called Coup de pouce économies d'énergie, launched in 2017, and which is now known as prime à la conversion chaudière.

The initiative is run in partnership with several private sector energy suppliers, eg, EDF, Engie, Energie Solidarité and Total. Similar programmes operate across Europe.

To be eligible for the maximum grant, the income thresholds depend on the size of the household. In the Ile-de-France the maximum limit to quality is €35,510 for a couple and €26,962 in the provinces. Above these levels a grant remains available, up to €2,500.

The grants are in addition to other forms of support available, eg Anah housing agency renewal grants and the tax credit, subject to income level. The total level of support that is potentially available is, therefore, substantial.

Administration of the programme will be undertaken by the partners.

Under the Coup de pouce programme it is also possible to obtain support for insulation of the roof-space and floor insulation, on a means-tested basis.

Home Improvement Grants

More general grants remain available through 'Anah', the housing renovation agency, on a means-tested basis, which you can read more about in our guide below. These grants are for both owner-occupiers and landlords, and not mean-tested for the latter.

Interest Free Loans

An interest free 'eco' loan of up to €30,000 is available.

The loan is not means-tested.

The éco-prêt à taux zéro can be used in tandem with the tax credit.

It can also be used alongside a conventional mortgage.

Lower VAT

A reduced rate of VAT of 5.5% applies to building works of energy conservation.

The rate also applies to associated works carried out with works of energy conservation.

However, only those elements eligible for the tax credit (CIDD) are entitled to this lower rate, which does include repair and maintenance.

Local Rates Exemption

A full or partial exemption against the taxe foncière for up to 5 years is available in certain areas, both for energy conservation to existing homes and to those new homes constructed to an energy efficiency standard that is higher than the regulations currently in force.

The eligible works are broadly those that also qualify for the tax credit.