France launches heat pump leasing program for low-income households

The French government has launched a new integrated heating initiative, described as a “leasing” model for heat pumps, to assist low-income households in transitioning away from gas and oil boilers. Starting October 1, the program aims to equip 55,000 households over two years with air-to-water heat pumps.

Supported by a 540 million euro budget funded through energy saving certificates (CEE), the scheme provides an average aid of 9,800 euros per household. While termed “leasing,” the arrangement allows households to become owners of the equipment via a comprehensive package that includes installation, financing, maintenance, and electricity supply. The goal is to ensure that monthly payments remain equal to or lower than previous heating bills for at least three years, potentially halving energy costs once the equipment is fully paid off.

Six business consortiums have been selected to provide these offers, including groups involving IZI by EDF, Octopus Energy, Effy, Hello Watt, and Engie.

Separately, several other social and health changes take effect in France this October. These include the reimbursement of reusable menstrual products for certain groups, the generalization of third-party payment for the “Mon soutien psy” program, and an increase in the annual cap for medical franchises to 140 euros.