Thermal renovation of your home is important if you live in an energy sieve and want to save energy. Aid can help you to reduce the overall investment, but you must meet certain conditions to qualify for it.
State tax benefits
Under the Law on Energy Transition for Green Growth, the State has introduced several tax incentives to encourage individuals to carry out energy retrofits in their homes. The best known advantage is the sustainable development tax credit, which allows up to 30% of the amount of the work to be deducted from income tax. The tax credit can benefit all households, even those that are not taxable. In this case, the State pays the amount as a bonus. This device is even valid for a simple thermal diagnosis.
Other tax advantages are a little less well known. In the context of energy renovation, all private individuals can benefit from reduced VAT. This VAT is 5.5% on the purchase of materials and 10% on labour. In some municipalities, you can also apply for a temporary exemption from property tax if you have carried out a certain amount of work on your home.
Other financial aid
The State has also asked certain bodies to encourage households to carry out work to improve the performance of housing. This is notably the case for energy suppliers who can finance all or part of the work through the energy bonus. This device can be paid in different ways and it is essential to approach several energy suppliers to find the offer that suits you best. You are not obliged to use your own supplier.
The National Housing Agency (ANAH) can also provide you with substantial aid to finance half of your renovation work. However, you will have to comply with certain conditions after the work has been completed, in particular that you live in your home for a few years or rent it out at capped rates if you are making a rental investment. If you still want to borrow to help finance your work, you can take out an eco-loan at a zero interest rate under certain conditions.
How to benefit from financial aid?
All financial aid for energy renovation is subject to certain conditions, but all the schemes have one thing in common: you must hire an RGE craftsman to carry out the work. The companies concerned obtain the label via an independent body recognised by the State after proving that the workers can carry out renovation work providing sufficient thermal performance to make energy savings. It is important to always contact the various aid organisations before signing any quotation to check that you meet all the conditions.
Some grants such as those from the ANAH are also subject to an income ceiling. Only modest and very modest households are eligible for this scheme according to a scale that differs according to the size of your household and the region in which you live. In the Ile-de-France region, for example, the income ceiling has been raised because of the higher cost of living than in the rest of the country. It is important to find out about your eligibility for the scheme and gather all the documents necessary to prove your family and financial situation.