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Tax Credits for Home Owners in France

Submitted by Baerbel Epp on June 2, 2009
Since 2005, home owners in France have profited from tax credits for solar thermal systems. The tax credit scheme was modified several times. At the beginning solar thermal investors could deduct 50 % later 30% of the investment costs. The Finance Bill 2014 reduced the tax credits from 30 to 15 % at the beginning of 2014. In September 2014, the tax credit for sustainable development, CIDD, became the tax credit for energy transition, CITE, offering a 30 % tax relief for energy efficiency measures carried out after 1 September 2014. The client can, therefore, deduct 30 % of the investment costs of the solar thermal system excluding man-hours, when filing their tax return and therefore reduce the tax payment by 30 % of the investment costs. The table was revised by Vincent Boulanger in March 2016.


Country / region

France

Name of programme 

Crédit d'impôt pour la Transition énergétique (CITE) (meaning Tax credit for the energy transition)

Type of incentive 

Tax credit 

Eligible technologies 

Solar thermal systems providing hot water and/or heating, as well as heat pumps and wood boilers. The tax credit also subsidizes energy efficiency measures, like thermal insulation, double-glazing, etc.

Applicable sectors

Residential sector, eligible for building owners as well as house and flat tenants

Regulation of tax credit 

Applicants can deduct 30 % of the investment costs of a solar thermal system, excluding installation costs, with their next tax return (other public fundings have to be deducted from the total investment).

People who do not pay taxes receive a subsidy equal to the amount of the tax credit. 

Maximum amount 

Once during a period of five years; the amount that can actually be deducted ranges from a maximum of EUR 8,000 for a single person and a maximum of EUR 16,000 for a married couple (+EUR 400 per dependant).

The tax credit is calculated on the basis of an investment limit of :

  • EUR 1000/m² for water collectors
  • EUR 400/m² for air collectors
  • EUR 400/m² for hybrid (PV+solar thermal) water collectors
  • EUR 200/m² for hybrid (PV+solar thermal) air collectors

Requirements for system / installation 

Installation requires the CSTbat collector certificate or Solar Keymark and companies must both sell and install a system (self construction is not an option).

The system must have a minimum energy efficiency : EU Energy label with A grade for the system, collectors with a minimum productivity and hot water tank with reduced heat losses.

The installer must have an RGE qualification (RGE=Reconnu Garant de l'Environnement).

Finance provider 

The tax credit application has to be sent to the fiscal authorities, along with the invoice of the installer or supplier of the solar thermal system

Effective date 

1st January 2005

Expiration date

31st of December 2016

Website 

http://www.ademe.fr/particuliers-eco-citoyens/financer-projet/renovation...

Last review of this tabloid 

March 2016

Contact

Enerplan
Le Forum – Batiment
B515 avenue de la Tramontane
Zone Athelia IV13600 La Ciotat, France
Phone: +33 4 42324320
Fax: +33 4 42 08 44 94
info@enerplan.asso.fr
www.enerplan.asso.fr

 

Effective Date: 
January 1, 2005
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