Housing Bonuses and Penalties Still Envisaged

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On April 26, 2018, the Minister of Ecology and Energy Transition Nicolas Hulot delivered a speech setting out his plan which aims to reach the goal of 500,000 homes renovated annually. If the issue of bonuses and penalties has not been raised, it is still under study.

Bonus and ecological penalty on housing: a measure that is not unanimous
The Minister of Ecology has not given up on his idea of ​​setting up a bonus and ecological penalty system, as is already the case for cars. The announced objective is to encourage the owners to carry out the energy renovation of their property and thus make it possible to reach 500,000 sites per year. This target, set since 2007, is far from being reached today since there are currently estimated to be less than 300,000 modernized dwellings.

The National Union of Real Estate Owners (UNPI) is firmly opposed to the implementation of this bonus/penalty system which will apply to property tax or the sale of real estate. This grouping criticizes the measure for being coercive, even though the owners do not have all the means to carry out the requested work.

According to the French Building Federation, the measure is considered ineffective. For the consumer union UFC – Que Choisir, on the other hand, the project must be supported insofar as it will encourage donors to make the energy transition.

Energy transition: aid already in place
To encourage the renovation of real estate with a view to achieving better energy efficiency, the French State has already implemented a series of aids. The energy transition tax credit (CITE) makes it possible to finance up to 30% of the amount of the renovation project.

The energy-saving certificate (EEC) sets up a system that requires energy suppliers (the obligated) to achieve energy savings. They can thus buy certificates from individuals or organizations that carry out energy-saving work. There is also the eco-PTZ which gives access to an interest-free loan.

This aid, although incentive-based, is not yet well known to the French, in particular modest households which are in the majority among energy colanders, that is to say poorly insulated housing.

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