Much has been made recently of an announcement by the government to increase by €1,000 a grant for the replacement of a gas or oil-fired boiler by a renewal source of energy, normally a heat pump or pellet boiler.
The grant assistance is available through the main scheme for assistance for improving energy efficiency, called 'MaPrimeRénov'.
The total amount of the grant depends on your income and the type of new energy source to be installed. For a heat pump it is €5,000 for those on the lowest incomes (up to €22,230/couple in the regions) and €11,000 for an automatic wood pellet boiler.
These are sums not to be sniffed at, but most other elements of work are less generous, and although the scheme is promoted as being 'universal' the assistance tapers off significantly as income rises, and those in the highest income bracket (+€42,848 for a couple in the regions) have no grant entitlement for such work.
As the cost of renewal energy sources are often well in excess of the basic grant, households have been able to make use of a complementary grant scheme called the Certificats d’économies d’énergie (CEE), to reduce the funding gap.
These grants are available through the main energy suppliers who, under threat of financial sanctions from the government, are obliged to provide them to clients.
However, since 1st May the level of assistance available through the CEEs has been substantially reduced, in some cases by up to 30%.
From 1st July the 'Coup de pouce' grant premium available for the insulation of attics, roofs and floors will be abolished. This programme was frequently promoted by unscrupulous companies as costing a household €1 but was subject to widespread abuse.
The government justified the change to encourage households to take more responsibility for the work, stating: "When you only pay a symbolic euro for insulation work, it is not very empowering. Whereas when you pay something, even with a minimum remaining charge, you are a little more attentive and demanding about the quality of the work."
There is also a 'Coup de pouce' supplement for renewable heating systems, but apart from EDF and Sonergia, none of the other major energy suppliers are marketing this offer. In addition, since last year only heat pumps and biomass-based installations are eligible.
The professional body of artisans, Capeb, has also drawn attention to the spiraling costs of the work, due to an increase in material costs, and a shortage of labour. They consider that if the government objectives are to be reached the main grant regime must increase each year in line with inflation.
There are also substantial delays in obtaining materials and equipment, such as heat pumps, where the lead-time can be several months.
Olivier Salleron, president of the French builder's association (Fédération française du Bâtiment,) considers grant levels to be inadequate for a comprehensive approach. "For households with the highest incomes, MaPrimeRénov' is limited to fairly modest aid for the insulation of walls and roofs, as well as a subsidy of €10,000 to €15,000 for a whole-house approach, the amount of which regularly exceeds €50,000, and can approach €70,000 for an average property. In addition, the aid for the replacement of single-glazed windows is insufficient," he states.
Although last year around 700,000 households took advantage of the grants system to undertake energy works, the average level of the main grant was only a few thousand euros, which does suggest that most households have chosen to switch off their heating or add an additional layer of clothing rather than invest in complete renovation.
Like most other professionals, Olivier Salleron also laments the complicated nature of the schemes in the place and the regulations that apply, which many companies do not fully understand, let alone households. The information that must be provided on the estimate are so detailed that many estimates submitted are rejected by officials. Only accredited companies are permitted to undertake the work, but such is the complexity of the whole process and the delays in release of the funds that an increasing number of builders prefer not to take it on. Accordingly, finding a company to do the work is becoming difficult, which in turn is pushing up prices.
Alongside grants it is possible to obtain an interest-free 'eco' loan, which can provide most if not all the funding required for several elements of work. Nevertheless, most banks are unenthusiastic about granting the loans, and the usual repayment criteria apply so low-income households are excluded. We will say more about the loans system in a future article.
Those seeking assistance will need to have an energy audit undertaken and in order to improve the effectiveness of any single element of work a holistic approach is being strongly encouraged by the government. In particular, although heat pumps are now being widely used as a replacement form of space heating, many professionals consider that unless the dwelling is fully insulated, the running costs can be substantial and the performance of the installation likely to disappoint.
If a pellet boiler is to be used, there is also the issue of storage space for the pellets to be considered, a not infrequent problem for households.
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