March 1, 2024
third-party financing
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The steps to carry out energy renovation work on a condominium can be long and costly. It is to speed up the process and reduce the bill that third-party financing has been put in place. At lesferets, we explain how it works.

What is the definition of third-party financing?

Let’s start at the beginning and define the term “third party financing”. In concrete terms, this is a mechanism that consists of going through a third party who will be responsible for organizing and financing the energy renovation work of a property. For this, there are companies that manage this type of project. The concept of third-party financing was launched with the Energy Transition Law for Green Growth of 2015.

This is particularly interesting in the context of a joint ownership: if a building needs energy renovation work , it is possible to call on third-party financing (TF) which will provide technical and financial support . He can advance all the funds and will be reimbursed thereafter according to the energy savings achieved. For the owners, it is therefore not necessary to advance the money for the work.

Energy renovation work allows individuals to take advantage of EEC bonuses thanks to the Pope law .

Third-party financing and energy renovation: how does it work?

Since its entry into force in 2016 within the framework of the Alur law , third-party financing aims to facilitate the procedures for the energy renovation work of a condominium while financially supporting the latter.

Objective: to encourage condominiums to strt renovation work aimed at  reducing their energy consumption .

As you will have understood: third-party financing and energy renovation are closely linked: in fact, the objective of third-party financing companies is to support condominiums in carrying out renovation work aimed at reducing their energy consumption.

As we quickly mentioned above, its operation is simple: a single third-party funder takes charge of all the energy renovation work from the design of the work to its completion. He helps design the project by carrying out an audit of energy needs and insulation.

Depending on the results, a work program is drawn up and planned. The third-party funder is responsible for contacting professionals and comparing quotes to find the most attractive rates. Finally, a financing plan is put in place for a period of between 15 and 20 years.

The condominium then pays the third-party funder a “rent” the amount of which is less than or equal to the savings made possible by the renovation.

But how to finance his work?

Entrusting the energy renovation project to a single third-party funder saves time. From 4 to 5 years initially, the project can be reduced to 2 or 3 years , by pooling all the operations to be carried out.

The third-party funder advances all of the costs for financing the work. Thereafter, it will be reimbursed according to the energy savings achieved. These are measured over a period that can extend from 15 to 20 years .

In order to be reimbursed for the financing of its work, the third-party funder must justify significant savings made after the energy renovation. Indeed, this work financing system only works if the energy performance of the dwelling is improved by at least 25% .

Reduce the labor bill

One of the main advantages of this system is also to reduce costs by pooling a certain number of operations . What’s more :

The third-party funder is responsible for requesting financial aid (Ademe, state aid, etc.) which can sometimes represent a reduction in the bill of around 20,000 to 25,000 euros per dwelling in addition to the energy savings allowed.

The latter can also help individuals to also obtain certain aid (aid from Ana, eco-PTZ , the energy transition tax credit).

As we have seen, the third-party funder advances all of the costs. Then, the co-ownership reimburses the company by paying it rent thanks to the energy savings made over a period generally between 15 and 20 years.

Third-party financing in the regions: a few examples

To facilitate access to information and help those interested, several regions have developed third-party financing operators. They can support individual, collective, public or private housing in energy renovation work.

Ile-de-France Energy

Formerly known as Énergies POSIT’IF, it is a company created in 2013 to support condominiums with more than 50 homes in their energy renovation work throughout the Île-de-France region. Their field of action is vast: carrying out energy audits , management of financing plans, site monitoring… This allows them to take care of the energy renovation of a project from start to finish to make between 40 and 70 % energy savings.

Facirénov

Facirénov is the third-party financing of Bordeaux Métropole Energies. It operates throughout the Bordeaux urban area to support people wishing to carry out an energy renovation project. Facirévol is present in all stages of the project  : from the audit and the search for financing solutions to the completion of the works and the company even offers post-works support.

octave

Oktave is third-party financing for the Grand Est region. It was created on the initiative of the region and ADEME to help and advise during energy renovation work. Oktave highlights the company’s technical support and financial engineering to support customers in their work projects.

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