INTIEAFrance · Preferential loans for energy saving measuresPolicyIn force

Preferential loans for energy saving measures

On 5 October 2006, the French Government announced the creation of a EUR 10 billion fund for the funding of domestic energy conservation projects with low-interest loans. Available from 1 January 2007, the low-interest loans are based on a previous tax-free savings account known…

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Country / jurisdiction: France · Year: 2007 · Status: In force · Level: National · Type: Voluntary

On 5 October 2006, the French Government announced the creation of a EUR 10 billion fund for the funding of domestic energy conservation projects with low-interest loans. Available from 1 January 2007, the low-interest loans are based on a previous tax-free savings account known as the CODEVI (Compte pour le Développement Industriel). This savings product allowed banks to finance the development of small- and medium-sized enterprises (SMEs).

The CODEVI as of 1 January 2007 has been renamed the LDD (Livret de Développement Durable), and banks must use a portion of these funds to offer preferential loans for domestic energy conservation projects. While the CODEVI was capped at EUR 4600 per person, the LDD cap has been raised to EUR 6000 per person to raise additional funds for these loans. As of 2009 the account pays tax-free interest of 2.5% a year. In 2008, banks must dedicate 2% of the funds to energy conservation loans, rising to 5% in 2009 and 10% thereafter.

Preferential loans can be awarded to individuals, co-properties and entrepreneurs for the purchase and installation of: energy efficient boilers; thermal insulation (walls, windows, shutters); thermal regulation equipment; equipment producing energy from renewable sources; space and water heating equipment using wood or other biomass; heat pumps. Applicants must provide the bank with documents from the equipment installer, certifying that the equipment and installation meets the required energy efficiency criteria. This financial measure is complementary to the 2005 tax credit scheme. The acquisition of domestic energy efficient equipment entitles the buyer to a price reduction (tax credit scheme) and a low-interest loan at the same time (LDD measure).

Official source: http://www.fbf.fr/Web/internet/content_particuliers.nsf/(WebPageList)/Les+modalites+de+fonctionnement+du+Livret+de+developpement+durable+sont+precisees?Open

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https://www.iea.org/policies/1806

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