Interest free eco loans launch 2009

Homeowners will be able borrow up to €30,000 in interest-free loans for green home improvements from next year.

The loans can be used for insulation and heating systems, with a ceiling of €30,000 a spokesman for the Ecology Ministry said.

While the ministry has confirmed the loan, reported by Les Echos it has not published an exact list of purchases that will be covered.

For the zero-interest loan, a homeowner would need to apply to a bank for the money needed for the work and reimburse the sum over seven or eight years.

The government will pay the bank the interest due on the loan.

France already offers tax credits of up to 50% on the price of new-generation boilers and double-glazing.

For this to work the objects must be installed by the same accredited firm from which they were bought.

The rebate only covers parts and not labour and homeowners must get a full receipt to attach to their tax forms.

Critics say the system has resulted in suppliers raising their prices and does not really benefit homeowners.