29-07-2025
Government official calls on banks to push homeowners towards new heating systems: 'The key factor is purely financial'
French Prime Minister François Bayrou recently advocated for banks to offer more financing opportunities for geothermal heat pump installations, according to Think GeoEnergy.
Bayrou called the energy source a "gold mine" at the 2025 Geothermal Days conference.
Besides their ability to displace polluting sources like gas, heat pumps are indeed an economic opportunity as well. Heat pumps operate much more efficiently than other climate control methods, making them money-saving mechanisms in the long run.
Most heat pumps capture heat or dump it into the open air outside of a home. It's possible for them to transfer heat more efficiently when their loop runs underground since soil maintains a more stable temperature than air.
These geothermal systems require digging and drilling, however, which leads to higher costs. In France, installation can cost 20,000 euros ($23,500), or twice the cost of a boiler.
With additional financing support, Bayrou said he hopes that France could hit its stated goal of replacing half of residential gas boilers with heat pumps in the next 20 years.
Which of these factors would most effectively motivate you to buy a heat pump?
Lower energy bills
Better temperature control
Helping the planet
I'd never buy a heat pump
Click your choice to see results and speak your mind.
Research shows that bans on new boilers could help the cause. French President Emmanuel Macron had previously outlined aims for the country to domestically manufacture 1 million heat pumps.
"The key factor is purely financial," said Bayrou, translated from French, suggesting that the public Caisse des Dépôts or the Banque Publique d'Investissement could amortize installation costs while still keeping monthly costs competitive with boilers.
"If a family is offered, for the same monthly payment but only spread out over a longer period, a heat pump rather than a gas boiler, I am sure that they will make this choice because they will save, in energy costs, the amount of this monthly payment," said Bayrou.
Heat pumps are a smart home upgrade no matter where you live. In the U.S., some federal incentives are still available to help take the sting out of installation costs, but it's best to jump on them before they disappear.
Which of these factors would most effectively motivate you to buy a heat pump?
Lower energy bills
Better temperature control
Helping the planet
I'd never buy a heat pump
Click your choice to see results and speak your mind.
Industry members were happy to hear Bayrou's support for geothermal heat pumps.
"These announcements represent a decisive step. This strong signal from public authorities reinforces Arverne Group's efforts to make geothermal energy a key driver of our energy sovereignty," said CEO of Arverne Group Pierre Brossollet.
"The challenge now lies in swiftly turning these intentions into action to scale up geothermal solutions across France."
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