1. Article: Plumbing and central heating in France

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2. The energy differences

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ENERGY PRICE 100kWh PERCENTAGE
Electricity 12,98€ 100%
Propane 13.10€ 101%
Oil 9.81€ 76%
Town gas 6.79€ 52%
Wood pellets 5.10€ 39%
Wood 4.02€ 31%

Source : Environmental Agency, Development of renewable energy, August 2010

3. Tax credit

In 2007, the Grenelle environment had injected a big surge of hope for the carbon-free economy by encouraging the consumers to invest in energy efficient solutions and planet friendly products.

The tax credit was the main measure to help owners and tenants to increase the energy efficiency of their homes.

But during the past 4 years the government has been slowly decreasing it's interest in this measure.

Starting from the 1st of January 2012, a new 20 % discount will take effect.

Here are two examples on two different products to give you a more precise idea on this price drop and on it's impact :

  • Heat Pump Air/Water : Price 10.000€ (average price), this gave you a 2.200€ tax credit. In 2012 you were allowed 1.700€ , a difference of 500€.
  • Condensing gas boiler : Price 6.000€ (average price), that give you 780€ tax credit. With the new 2012 rate, you are allowed 600€, 180€ difference.

We can certainly observe that even with this 20 % reduction, the tax credit is interesting and
reduces significantly the price of your investment. Although the difference between the new 2012
rate and the 2011 rate is importante.

To give you a more precis view on the 2012 tax credit modification / change, we have made a
summary chart to compare the rates.

Materials Tax Credit 2011 Tax Credit
2012
Tax Credit
2013
Tax Credit
2014
Condensing gas boiler 13% 10% 10% 15%
Photovoltaic solar panel 22% 11% 11% Aucun
Solar water heater 45% 32% 32% 15%
Heat pump air/water 22% 15% 15% 15%
Heat pump air/air None None None None
Geothermal heat pump 36% 26% 26% 15%
Wood pellet boiler (purchase) 22% 15% 15% 15%
Wood pellet boiler (replacement) 36% 26% 26% --
Window insulation 13% 10% 10% 15%
Attic, floor and wall insulation 22% 15% 15% 15%
Thermodynamics water heater 36% 26% 26% 15%

Still today, the tax credit on sustainable development is one of the most complicated in tax benefits as they are a lot of different rates.

Indeed it was hard to know what rate you could be granted. In 2014 the tax credit was made easier by creating only two types of rates :

  • 15 % for individual jobs
  • 25 % on multiple jobs

For more information, see Tax Credit 2014