New study for ADEME: Understanding and combating fuel poverty
Technopolis Group had the honour of collaborating with ADEME on a strategic study aimed at analysing the effectiveness of energy renovation financing schemes, in particular the Prêt Avance Rénovation (PAR). At a time when the fight against fuel poverty is crucial, this study is part of an effort to assess the obstacles and opportunities to enabling more low-income households to gain access to the support available.
Millions of households suffer from poorly insulated homes and difficult access to affordable energy. It is more crucial than ever to propose viable solutions to improve their comfort while reducing their energy consumption.
This study focused on the Prêt Avance Rénovation (PAR), a mechanism designed to support low-income households in their energy renovation work. We sought to understand the obstacles to its use and to identify opportunities to make it more accessible and more effective.
The Prêt Avance Rénovation is still a little-used option. Many households are reluctant to take out a loan because of the fact that it will be repaid in full at the time of sale or inheritance. However, with the introduction of a zero-interest PAR, allowing interest-free loans for 10 years, we hope to see this trend change.
Study findings
One of the main obstacles identified is the reluctance of households to commit their assets to finance home improvements. The fear of leaving a debt to their descendants, combined with the complexity of the mortgage mechanism, is a major obstacle. It is therefore essential to raise awareness and provide better support to overcome these concerns.
Banks, for their part, remain cautious about this product. Fiduciary management and potential conflicts with heirs complicate its spread. However, the Finance Act for 2024 provides for tax incentives, including a tax credit for banks that distribute the zero-rate RAP, paving the way for greater take-up.
Our recommendations aim to simplify the RAP, encourage banks to promote it more and better support households in the process. Targeted communication efforts and greater collaboration with local operators are also needed to maximise the impact of this scheme.
