Energy renovation of your home: which grants to apply for?

Are you planning to purchase a property requiring works, or simply looking to renovate your home with the aim of improving its energy performance? Public policies encourage these initiatives through several aid schemes, granted subject to conditions. Overview of the main ones!

MaPrimeRenov, replacement for the CITE

Launched in early 2020, MaPrimeRenov will operate this year alongside the Crédit d’impôt pour la transition énergétique (CITE) [energy transition tax credit], which will cease on 31 December 2020. The income tax reduction has therefore been transformed into a grant paid by l’Anah [National Housing Agency].

Modest-income households occupying their property will be eligible from 2020, while private landlords, property syndicates and all other households will only have access from 2021.

The grant amount, capped at €20,000 per property, varies depending on the nature of the works and materials used. This may include insulation, heating or ventilation, as well as energy audits of properties (houses or flats in collective housing). Your application must be submitted via a dedicated website to be processed by the competent authorities.

Finally, the company carrying out the works must hold RGE certification [Recognised Guarantor of the Environment], and you may combine this grant with other aids.

Zero-rate eco-loan

Currently valid until the end of 2021, the eco-PTZ is available to any owner-occupier or landlord (and co-owners) without means testing. The property must have been completed before 1 January 1990 and serve as a primary residence.

The eco-PTZ is obtainable for overall renovation that improves the property’s energy performance score, or relates to works included in one of the following categories:

• complete roof insulation;
• insulation of at least half the walls facing the exterior;
• replacement of at least half the windows and French windows facing the exterior and consisting of single glazing;
• insulation of floors, crawl space or open passage;
• installation or replacement of a heating system or domestic hot water production;
• installation of an eco-friendly heating system;
• installation of eco-friendly domestic hot water production.

The maximum amount for an eco-PTZ is €30,000, with certain caps set according to the number and nature of actions planned. Once the loan is granted, you have 3 years to carry out the works. Finally, taking out an eco-PTZ may be combined with receiving MaPrimeRenov.

Reduced-rate VAT

With a view to helping finance housing improvement, VAT has been reduced for most renovation works. Normally at 20%, two lower rates apply:

• VAT at 10% is available for improvement and fitting works, on both supplies and labour. This may concern joinery, kitchens, bathrooms, heating systems, among others;
• A rate of 5.5% applies when it comes to renovation aimed at energy performance: increasing insulation performance or more eco-friendly equipment.

Please note, to benefit from reduced VAT, you must order your supplies from a construction company and not directly from a shop. A certificate must be given to your contractor, justifying your right to reduced VAT.

Grants and subsidies

Various grants or reductions may be awarded, sometimes subject to means testing.

• Regarding taxes, the Denormandie tax reduction reduces income tax for persons acquiring properties to renovate in certain areas. Likewise, works may lead to exemption from council tax in some local authorities.
• Grants for carrying out energy performance works also exist:** l’Anah pays a “Habiter mieux sérénité” [Better Living Serenity] grant** of between €1,600 and €2,000 (depending on household income), while Action Logement may award grants and a 1% loan.
• Energy supply companies may grant a grant for carrying out energy efficiency works (by an RGE company). The same companies generally implement the “Coup de pouce économies d’énergie” [Energy Savings Boost] scheme, which helps modest-income households.
• Finally, the energy cheque has replaced social energy tariffs for low-income households. It ranges from €48 to €277 and is automatically awarded following calculation of annual reference income.

Don’t hesitate any longer to undertake works that will improve your property’s comfort while reducing your energy bills. To avoid missing out on subsidies to which you are entitled, the government proposes an online simulator which will also guide you towards the right contacts.