Amendment allows energy savings-based payments

The National Assembly approved an amendment on October 30 to the 2027 budget that would let households calculate their monthly payments for zero-interest eco-loans based on expected energy savings after renovation work. This approach is optional and requires further implementation details.

Loan payments tied to projected savings

The amendment, I-3817, would allow borrowers to choose monthly payments based on projected energy savings, with a cap at 90% of annual savings converted into a monthly figure. These payments would be calculated using a standard method to estimate energy costs before and after renovation.

Loan terms and eligible work specified

The repayment period could extend up to 240 months, or twenty years, within the funding limits for the eco-PTZ. The loan would remain limited to eligible expenses after subtracting public aid and energy savings certificates. The amendment focuses on insulation, heat pumps, and certain high-performance wood or biomass equipment, including adaptations for condominiums.

Lenders must consider savings in assessments

Lending institutions would need to factor in projected savings when evaluating a borrower's ability to repay. They would have to provide written reasons for any refusal but are not required to approve the loan, as solvency rules would still apply. The new method would be optional and would not replace the standard terms of the eco-PTZ.

Amendment faces criticism but passes

During the October 30 debate, general rapporteur Philippe Juvin and minister David Amiel expressed concerns, including the risk of longer financing periods and reduced bank willingness to lend. Despite these objections, the amendment was adopted by a vote of 24 to 17, with 36 abstentions.

Amendment adjusts existing loan terms

The eco-PTZ already provides zero-interest loans for energy renovations, with current terms based on evaluations by state-contracted financial institutions. The amendment does not introduce a new subsidy but adjusts the repayment terms of the existing loan. Further steps in the budgetary process and a decree from the Council of State are still needed for full implementation.