From January 2025, the French government plans to apply a single VAT rate of 20% on gas boilers. This decision puts an end to the reduced rates which these equipment previously benefited from:
- 10% for low temperature boilers
- 5.5% for condensing boilers
This increase will concern both the purchase and installation of gas boilers. For owners, the financial impact will be significant. It is estimated that installing a standard condensing boiler could cost around €700 extra. This substantial increase may surprise many consumers, especially since this equipment was still recommended until recently.
Ecological motivations and European compliance
Behind this measure lie ambitious environmental objectives. The government seeks to encourage the adoption of greener heating systemssuch as heat pumps or low-consumption pellet boilers. These alternatives are considered renewable energies, effectively part of the overall logic of ecological transition.
Furthermore, this decision is aligned with the new directives from the European Union concerning reduced rates for the purchase and installation of equipment using fossil fuels. France, as a member of the EU, must comply with these recently modified rules.
Note that this measure will not concern repair or maintenance work on existing boilers. These interventions will continue to benefit from reduced VAT rates, providing some relief to existing gas boiler owners.
Alternatives and solutions for owners
Faced with this announced increase, owners must consider different options to optimize their heating while controlling their energy costs. Here is an overview of possible alternatives:
| Solution | Benefits | Disadvantages |
|---|---|---|
| Heat pump | Energy savings, low environmental impact | High installation cost |
| Pellet boiler | Renewable energy, stable fuel prices | Storage space required |
| Condensing boiler (gas) | High efficiency, compatible with the existing network | VAT increase in 2025 |
Homeowners may also consider improving the insulation in their home to reduce their overall energy consumption. Of the financial aid exist to encourage this energy renovation work, such as MaPrimeRénov' or Energy Savings Certificates (CEE).
Budgetary implications and future prospects
This increase in VAT is not without consequences for public finances. The government plans to generate 150 million euros in additional revenue thanks to this measure. These funds could potentially be reinvested in programs supporting the energy transition, although this remains to be confirmed.
In the long term, this decision could accelerate the paradigm shift in the residential heating sector in France. Manufacturers and installers of alternative heating systems could see their business grow, while the gas industry will have to adapt to this new situation.
For owners, it will be vital to plan ahead any heating system replacement or installation project. Anticipating these changes will allow you to make informed choices, taking into account both financial and environmental aspects. Consulting with energy efficiency experts could prove valuable in navigating this new home heating landscape.
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