Interest-free loans for energy efficiency in homes

3rd September 2008, Comments 0 comments

France will offer interest-free loans of up to EUR 30,000 from 1 January to encourage energy efficiency in the home.

3 September 2008

PARIS -- France will offer interest-free loans from 1 January to encourage energy efficiency in the home, government sources said on Tuesday.

The loans can be used for thermal insulation and heating systems, with a ceiling of EUR 30,000, ecology ministry officials said, confirming a report in the financial daily Les Echos.

The measure, whose details have yet to be hammered out, is the latest in a series of initiatives by France to lower its bill for imported energy and its emissions of greenhouse gases.

Previous moves include a bonus system for cars in which taxes are increased or lowered according to the vehicle's carbon pollution. The system is shortly to be extended to televisions, light bulbs and other household gadgets.

France already offers tax credits of up to 50 percent on the price of new-generation boilers and double-glazing.

For the zero-interest loan, a homeowner would need to apply to a bank for the money needed for the work and reimburse the sum over seven or eight years.

The government will pay the bank the interest due on the loan.

[AFP / Expatica]

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