The energy renovation market in France

Energy-efficient renovation of French homes and commercial buildings is of paramount importance, responding to a triple imperative: combating the effects of climate change, supporting citizens' purchasing power and improving the population's quality of life.

In France, the building sector is the second largest contributor to greenhouse gas emissions. it alone accounts for 27% of CO2 emissions and nearly 45% of final energy consumption. As a result, the building sector is of crucial importance if we are to achieve carbon neutrality by 2050.

The energy renovation market more than doubled in size between 2006 and 2019, and this upward trend looks set to become even more pronounced in 2022 and 2023 thanks to government incentives and available grants.

The energy renovation market is boosted by government incentives and grants. The introduction of the PrimeRenov' scheme, which financed work worth 3.1 billion euros in 2022, benefiting almost 700,000 homes, and the 31% increase in the distribution of eco-loans in 2022, have played a key role. What's more, from 2025 onwards, it will be mandatory to remove from the rental market all homes classified as label G (and label F by 2028).

Although almost a third of French people plan to undertake energy renovation work in the coming years, 70% consider the cost of such work to be the major obstacle to improving the energy performance of their homes. What's more, the building renovation and improvement sector is experiencing rising costs, due to the significant increase in raw material and energy prices in 2022, a trend that continues into 2023.

While government subsidies are growing steadily, they are faced with the growing problem of work costs. Against this complex backdrop, it's worth asking how the players in this sector will adapt and evolve.