Solar
thermal energy in France
General
Main Tool: Tax credit
scheme
The 2005 finance law led to a complete recasting of the
income tax credit for expenditure on equipment for main residences,
intended to refocus this system on more efficient equipment in energy
terms and on equipment using renewable energies. This measure, which
promotes widespread distribution of sustainable energy equipment,
contributes to the achievement of the ambitious French targets in terms
of energy savings and renewable energies. It falls within the strategy
implemented to reduce by a factor of four our greenhouse gas emissions
by 2050. The 2006 finance law, the 2009 finance law and the third
amending finance law for 2009, in particular, have completed the
initially planned measures. In particular, regarding equipment for the
production of energy from renewable resources, those eligible are:
heating appliances operating on wood or other biomasses, heating or
domestic hot water equipment operating on
solar or water-power energy, heat pumps for heating or domestic hot
water with the exception of air/air heat pumps, equipment for the
production of electricity operating on solar, wind orwater power, or
biomass.
Created in 2005, the tax credit was initially conceived until 2009. It
has been extended until 2012.
Beneficiaries
The benefit of the tax credit is granted to tax payers, natural
persons, who pay expenditure for equipment for their main residence.
The tax advantage applies without distinction to tax payers who are
owners, tenants or non-paying occupants of their main residence. For
some equipment, the housing must fulfil an age condition.
The supply and installation of the equipment must, in principle, be
carried out by the same company and be the subject of an invoice
showing the performance characteristics required to benefit from the
tax advantage. The list of eligible equipment, together with the
technical criteria required, are published in a ministerial order which
is regularly updated.
The tax credit applies to the purchase price of these equipments,
materials and appliances such as is evidenced by the invoice supplied
by the company having carried out the works. In the case of additional
public aid for the acquisition of the equipment (regional council,
général council, ANAH, etc.), the calculation of the tax credit is made
based on the expenditure for the acquisition of the equipment, with
deduction made for the public aid. Since 1 January 2009, the field of
application for the tax credit has been extended to lessors on the
condition that they undertake to rent the property concerned,
unfurnished, for main residential use, for a minimum period of five
years, to persons other than their partner or a member of their tax
household.
Eligibility ceiling
The ceiling for eligible expenditure, fixed at € 8 000 for a single
person and € 16 000 for a couple subject to joint taxation, plus € 400
per dependant, is assessed over a period of five consecutive years
between 1 January 2005 and 31 December 2012.
The ceiling for eligible expenditure relating to rented housing is
fixed at € 8 000 per property and is assessed taking into account for
each property all expenditure carried out over the multiannual period
2009-2012. In a single tax year, the tax credit may only be applied to
the eligible expenditure limit related to three rental properties.
Technical specifications
The sustainable development tax credit targets a range of efficient
products. The products concerned are heating regulation and programming
appliances for heating equipment, thermal insulation materials,
appliances for heating and domestic hot water production from renewable
energies and appliances for renewable electricity production . The
conditions for the granting of the tax credit for equipment for the
production of energy from renewable resources are based on their energy
and environmental performance. Eligible equipment must correspond to
performance criteria. The following criteria are given as an example:
• in terms of heating or domestic hot water supply
equipment operating on solar energy, it is required that the solar
collectors correspond to CSTBat or Solar Keymark certification or
equivalent based on European standards.
• in terms of heating or hot water production
equipment operating on wood or other biomasses, an energy efficiency
superior or equal to 70% is required, and a rate of carbonmonoxide (CO)
of less than or equal to 0.3%, according to the testing standards in
force. These standards vary according to the type of appliance:
standard NF EN 13240 or NF D 35376 or NF14785 or EN 15250 for stoves,
standard NF EN 13229 or NF D 35376 for closed hearths and inserts,
standard NF EN 12815 or NF D 32301 for cookers used as a means of
heating,
• in terms of boilers operating on wood or other
biomasses, an energy efficiency greater than or equal to 80% (manual
loading) or 85% (automatic loading) is required, according to standard
NF EN 303.5 or EN 12809 and of which the power rating is less than 300
kW,
• in terms of systems for supplying electricity from
solar energy, it is required that they respect standards EN61215 or NF
EN 61646,
• in terms of heat pumps, their performance
coefficient must be at least 3.4, according to the reference for the
testing standard 145 11-2. These attribution conditions are reviewed
periodically according to technological advances and the distribution
of equipment.
Recent developments in the tax credit
regarding equipment for the production of energy from a renewable
resource
The tax credit is intended to promote the installation of the most
efficient systems and for which the market has not yet arrived at
maturity.
In this context, two main developments in the fiscal arrangements at 1
January 2009 have taken place:
• air/air heat pumps have been excluded from the tax
credit,
• the rate of the tax credit is reduced from 50 to
40% for heat pumps other than air/air, boilers and heating equipment
operating on wood or other biomasses.
The main developments in the fiscal arrangements at 1 January 2010 are
as follows:
• the rate of the tax credit is reduced from 40 to 25
% for aerothermal heat pumps other than air/air, and for wood-fired
heating equipment, given the maturity of these sectors.
• the rate of the tax credit is raised from 25 to 40%
in the case of the replacement of a woodfired or other biomass boiler
or of independent heating or hot water production equipment operating
on wood or other biomasses by a material equivalent, with a view to
reducing the polluting emissions of the boiler stock,
• the rate of the tax credit is fixed at 40% for
geothermal heat pumps, the expenditure for the installation of the
underground heat exchanger is now included in the basis for the tax
credit, in order to stimulate this stagnant market,
• thermodynamic domestic hot water equipment is now
included in the tax credit (40%),
• photovoltaic equipment still benefits from a 50%
rate of tax credit.
|
Investments qualifying for
tax credit |
In 2010 |
In 2011 |
|
Supplies of energy
production using solar
thermal, wind or water |
50% |
45% |
|
Photovoltaic panels |
50% until September
28 25% from 29
September * |
22 % |
|
Heaters or wood
biomass |
25% 40% for the
replacement of a
heating wood or biomass existing |
22% |
|
Heat Pumps Air /
water heat production |
25% |
22% |
|
Heat pumps buried sensor
for heat production
(laying the
ground heat exchanger included) |
40% |
36% |
|
Thermodynamic heat pumps for hot water production (excluding air / air) |
40% |
36% |
|
Equipment for connection to a network of heat supplied
mostly by renewable energy or cogeneration facility |
25% |
22% |
|
Expenses incurred for the execution of an energy performance analysis, except
in cases where regulation
makes it mandatory |
50% |
45% |
* The
50% is held if
the quote was accepted and a deposit
or a deposit paid
before 29 September 2010
and that the panels
generate electricity
later than March 31, 2011.
Household equipments
For private
individuals, investment aids at the regional level and the local level
can be
added to this tax credit. The amounts and the type of subsidies vary
across the
regions.
Example of Ile de France Region
In the Ile de France region the amount of
subsidy for the year 2010 reach 800 € for an individual solar water heater.
For a
system which combines solar water heater and under floor heating
subsidies up
to 1 300€.
Future programme changes expected
Sources
National action plan for the promotion of
renewable energies 2009-2020 In accordance with Article 4 of European
Union Directive 2009/28/EC
Interactive
EurObserv’ER Database
http://www.eurobserv-er.org
Last
update: March 2011