Energy renovation: the available grants (MaPrimeRénov', éco-PTZ)

Renovating an energy-hungry property is expensive, but numerous public grants reduce the bill. This guide reviews the main schemes a private landlord can draw on to finance energy renovation works and bring a property back into line with the EPC timetable.

Why renovate a rental property?

Beyond the improved comfort for the tenant and the lower running costs, energy renovation has become a de facto requirement for continuing to let. Properties rated G, then F and E, are progressively banned from being let, and the rent on energy-inefficient homes is frozen.

Improving by one or two energy classes makes it possible to lift the letting ban, unfreeze the rent and enhance the value of the asset. But the works still have to be funded: this is where the grants come in.

MaPrimeRénov'

MaPrimeRénov' is the main State grant, distributed by the national housing agency (Anah). It is open to private landlords, up to a limit of three properties. Its amount depends on the household's income, the type of works and the energy gain achieved.

The "MaPrimeRénov' Parcours accompagné" (supported pathway) funds large-scale renovations (a gain of at least two classes) with the mandatory support of an accredited "Mon Accompagnateur Rénov'" adviser. The "par geste" (single-measure) pathway funds standalone works, such as heating or insulation.

• Reserved for properties more than fifteen years old, occupied as a main residence.
• Works carried out by a company holding the RGE label (Reconnu Garant de l'Environnement, a recognised environmental quality certification).
• A commitment to let the property for at least five to six years depending on the case.

The interest-free eco-loan (éco-PTZ)

The éco-PTZ is an interest-free loan, of up to €50,000, intended to finance energy renovation works. It is available to private landlords with no income conditions and is repaid over a period of up to twenty years.

It can finance a package of works or a whole-home renovation, and can be combined with MaPrimeRénov'. A supplementary éco-PTZ can be taken out within five years of an initial loan for the same property.

Energy savings certificates (CEE)

CEE, or "energy bonuses", are funded by energy suppliers, which are required by law to promote energy savings. They take the form of bonuses, vouchers or discounts on the works.

CEE can be combined with MaPrimeRénov' and the éco-PTZ. The "Coup de pouce chauffage" (heating boost) and the "Coup de pouce rénovation" (renovation boost) are enhanced CEE for certain priority works. You must apply for the bonus before signing the quote.

Reduced VAT, the Denormandie scheme and local grants

Energy-improvement works benefit from a reduced VAT rate of 5.5%, applied directly by the RGE-certified company on its invoice. Associated works, for example making good a wall after insulation, also benefit from this rate.

The Denormandie scheme offers a tax reduction to landlords who renovate an older property in certain towns, on condition that it is let at a capped rent. Finally, regions, departments, inter-municipal bodies and some municipalities offer local grants that can be combined: enquire at a France Rénov' one-stop shop.

Combining grants: how it works

Most schemes can be combined, but the total of the grants cannot exceed the cost of the works. The order matters: the CEE bonus and MaPrimeRénov' are applied for before signing the quote, and the éco-PTZ then finances the remaining balance.

• Have an energy audit carried out to identify the most effective works.
• Choose an RGE-certified company, a condition for most grants.
• Submit the grant applications before signing the quotes.
• Go through a France Rénov' one-stop shop or an accredited adviser to secure the arrangement.