ALUR act: third party financing for the implementation of energy renovations
FRANCE – The ALUR Act has established the economic model for third party financing in order to overcome the obstacle of cash flow problems when it comes to carrying out energy renovation of a building, while the financial benefits accrued in saving energy are not immediate. All operations involving the energy renovation of buildings can now benefit from third party funding. This service is characterized by the integration of a technical offer, based on building work whose main purpose is the reduction of energy consumption, to a service including the partial or total funding of such offer in return for regular, staggered payments within an allotted time frame.
To this effect, Decree No. 2015-306 of 17 March 2015 defines:
– The scope and implementation arrangements for the service of energy renovation operations in houses or residential buildings (in the case of a condominium, at least 75% of the residents must be in agreement with the proposed renovation and be affected by the changes)
– The work to be financed,
– and the services to be included in the technical and financial offers (V. CCH, art R. 381-9 to R. 381-12.).
The act comes into effect on the 20th March 2015.