Energy renovation of housing: anatomy of an announced fall

Based on the analysis of more than 777.300 supported projects, representing more than 1,1 billion euros paid to households, it demonstrates how the dynamics of the sector has stalled over the years, particularly under the effect of incessant changes in regulations which have discouraged many French people from embarking on work.

Energy renovation work: a never-ending decline

After a very positive 2019 for the sector, with nearly 165.000 energy renovation projects financed by PrimesEnergie.fr across the country, 2020 began with a very sharp halt linked to the Covid-19 pandemic and the lockdown periods. However, the French people's interest in energy-saving work was confirmed with a saving catch-up in the second half of the year. This good momentum continued in 2021 until 2022 with -41% of projects financed and a significant discontinuous decline: -28% in 2023, then -50% in 2024.

That is -79% in total in just 3 years. While we obviously cannot ignore the geopolitical and economic situation – in particular the real estate crisis and the rise in the cost of materials – this fall that began in 2022 has other explanations and was announced by the vast majority of professionals in the sector.

Changes in management, successive cuts, administrative complexity... Change is constant

As early as 2021, the entire profession was warning about the too unambitious objectives set by the government in power for the CEE period 2022-2025, which would mechanically lead to a sharp drop in aid allocated to individuals. This drop, coupled with the elimination of bonuses for the most modest, then the gradual cessation of financing for certain work items, such as high-performance boilers, and the drastic reduction in insulation, for example, marked a first abrupt halt to the energy transition of housing.

Then, the choice to favor comprehensive renovations to the detriment of successive single actions which, although imperfect, had already proven themselves by allowing individuals to engage in a process of progressive renovation of their homes, has strongly contributed to the wait-and-see attitude of many owners. A situation reinforced by the new backpedaling of financing for comprehensive renovations, returning to the Anah and MaPrimeRénov' side, with still very limited success.

The unbearable inconstancy of public policies

For Nicolas Moulin, founder of PrimesEnergie.fr: "This study draws up a very clear observation, reflecting the dynamics of the entire sector of energy renovation of housing. Professionals have constantly sounded the alarm, without being listened to. By wanting to change the rules of the game too much without worrying about the consequences, we have simply turned the French away from energy saving work. By making the procedures too complicated, we have ended up losing them, while increasing the risks of fraud which have subsequently been confirmed. Without a real overall vision, sustainable management, or readable and measurable objectives, we have simply destroyed the dynamics of a sector. We are at a pivotal moment, let's show pragmatism and return to simple things that have proven their worth, by allowing households to carry out successive single actions. Let's focus on supporting the most modest, even if it means reducing aid for wealthy households if necessary. It is this common sense that we lost a few years ago, and that we now urgently need to regain!”

Illustrative image of the article via Depositphotos.com.