France launches 540 million euro heat pump leasing scheme for 55,000 low-income homes

Mechanism and financial structure

The French Ministry of Energy unveiled on 30 September 2026 the operational framework for its heat pump social leasing scheme, an initiative designed to help 55,000 low-income households replace fossil-fuel heating systems over a two-year period. Financed through Energy Savings Certificates (CEE), the program allocates 540 million euros in public investment, translating into an average state subsidy of 9,800 euros per household. The support targets the substantial upfront expense of reversible heat pumps, which cost an average of 15,000 euros to purchase compared to 4,000 euros for a conventional gas boiler. Pre-orders for the equipment open on 1 October 2026, and the ministry expects the first home installations to commence nationwide in November 2026.

Eligibility rules and billing structure

Access to the leasing program is reserved for low-income and very low-income homeowners of single-family dwellings who currently rely on oil or gas heating. Qualifying income thresholds vary by household size and location, capping eligibility at 1,855 euros per month for single individuals, 3,811 euros per month for couples with two children, and 4,750 euros monthly for couples with one child residing in the Île-de-France region. Under the all-inclusive contract, beneficiaries receive equipment installation, routine maintenance, and electricity supply grouped into a single monthly fee. The repayment framework spans three to five years and guarantees that participants will not pay more each month than they spent on their prior gas or fuel oil heating. Saunier Duval managing director Régis Luttenauer outlined the monthly financial impact for consumers.

From the first monthly payment, they do not pay more than before, and rather less. And we see that in two-thirds of cases, they will lose less; and in one-third of cases, it will be the same as before, including maintenance.

Industrial consortiums and energy savings

The government selected six industrial consortiums comprising energy suppliers and equipment manufacturers to manage the turnkey delivery of the heating systems. Energy ministry documents state that modern heat pumps operate at roughly three times the efficiency of fossil-fuel boilers, cutting overall energy consumption. Once households complete the three-year repayment schedule, their total heating bills are expected to drop by 50 percent. Minister Delegate for Energy Maud Bregeon addressed the cost barriers that previously restricted heat pump adoption during an interview with the Ebra press group.

Leasing will make it possible to support modest households in installing a heat pump by neutralising its installation cost, which remains the main obstacle to the transition.

Broader electrification strategy

The heat pump deployment follows the national electrification strategy presented in early summer 2026 by Prime Minister Sébastien Lecornu in response to rising fossil fuel prices. The heating scheme builds on the government's electric vehicle social leasing program, which logged 36,000 vehicle orders after launching in mid-July 2026. Defending the 540 million euro allocation from CEE funding against political opposition from both the far-left and far-right, Bregeon maintained that targeted financial support protects working-class households against volatile energy markets. The ministry also announced a proposal in the 2027 draft budget to advance annual energy voucher distributions to January, ensuring lower-income households receive direct heating relief during peak winter demand.