Why installing a reversible heat pump is now cheaper in France
Hundreds of euros can be saved on eligible combined heat and air conditioning units
Households in France installing a reversible air-to-air heat pump can now benefit from a sharply reduced rate of VAT, following a decree published in the Journal Officiel on Friday, July 17.
From July 18, VAT on qualifying air-to-air heat pumps, which both heat homes in winter and cool them in summer - has dropped from 20% to 5.5%.
The Housing Ministry says the change will save households several hundred euros on the cost of an installation.
How air-to-air heat pumps work
Unlike air-to-water heat pumps, which only provide heating, air-to-air models draw in outside air to extract either warmth or coolness and release it indoors.
In summer, they can lower the indoor temperature by several degrees, although manufacturers such as Engie recommend a maximum gap of 8C between indoor and outdoor temperatures for the system to work efficiently.
In winter, they also heat the home, though they use more energy to do so during periods of severe cold. The units suit houses, flats and apartment blocks alike.
Not every heat pump qualifies
To benefit from the reduced VAT rate, a heat pump must meet certain conditions:
For units under 12kW (the majority of air-to-air models), a pump energy rating of at least A+ or A++ is required
For units over 12kW, the decree sets separate seasonal energy efficiency thresholds.
The refrigerant fluid used must comply with current EU rules. The European Commission plans to ban a number of greenhouse-gas-emitting refrigerants from 2030, which is already pushing manufacturers towards cleaner alternatives.
The unit must also support smart connectivity, so its temperature settings can be programmed to vary by room and time of day.
What models cost and what you save
Prices vary depending on the size of the property. According to energy renovation specialist Effy (prices include installation):
‘Mono-split’ units, suited to small flats of one or two rooms, cost between €2,000 and €4,000.
‘Multi-split’ units, which use a single outdoor unit linked to several indoor units, suit larger flats and houses and cost between €4,000 and €15,000.
Based on these prices, the VAT change works out as follows:
A small flat with a €2,500 mono-split system would save up to €360.
A modest house with a €6,000 multi-split system would save up to €850.
The VAT reduction applies to the equipment.
Reversible air-to-air heat pumps also qualify for the prime énergie, part of the Certificats d'Économie d'Énergie (CEE) scheme, worth up to €1,500 for lower-income households, Effy says.
It is important to note that it is compulsory to service an air-to-air heat pump every two years for units with a capacity of 4 to 70 kWh, or annually if it contains more than 2 kg (12 kW) of refrigerant. Expect to pay between €100 and €300 for the servicing.
The Connexion recently answered a reader question about which heat pump is best for your French home.
VAT reduction brought forward
The VAT reduction was already planned as part of the 2026 finance law. Housing Minister Vincent Jeanbrun said in June that the decree would be published by the start of the school year in September.
In the end, the timetable was brought forward due to a shift widely linked to the heatwaves that have hit France in recent months.
It is the first step of a national climate action plan, which looks to bring France in line with current forecasts that temperatures will increase by +4C by 2100.
