How to apply for a subsidy to install collective heat pumps to replace boiler rooms

The transition to low-carbon energy is often held back by the cost of the investment required to replace equipment, a significant one-off expense, while the additional cost of carbon-based fuels is spread out over time. It is for this reason that assistance is being offered in the form of a subsidy to help with the cost of surveys and buying the equipment needed to switch over to a heat pump.

Compared with individual electric radiators, which require a great deal of energy to run, adopting a collective solution based on a heat pump offers many advantages: heat pumps are more energy-efficient, so they emit fewer greenhouse gases and are less expensive to run and, if the pipes and radiators are replaced with fan coil units, they can be used to provide collective heating and air conditioning.

The initiative to conduct energy audits for buildings, which was launched in 2018, has shown that replacing boiler rooms with a heat pump is an option in the vast majority of cases. This can be part of a wider renovation project to improve the building’s energy efficiency and thus reduce its energy requirements. For this reason, the heat pump subsidy is subject to surveys being conducted in advance to identify ways to reduce the power required from the new equipment.

To encourage co-owned apartment buildings and other buildings to install heat pumps, a subsidy covering 30% of the cost of the equipment and the surveys required to complete the work is available.

However, the replacement of heating and/or hot water supply equipment is a good opportunity to think about the power of the equipment and work on the building envelope (windows, walls, roof) that could help to reduce the power required and, consequently, reduce the investment and operating costs.

Consequently, to ensure a comprehensive approach, the heat pump subsidy is conditional on the support of a Mediterranean Sustainable Buildings of Monaco (BD2M) Coach. The cost of this service is fully covered (capped at €5,000).

For full details of the initiative and a list of BD2M coaches, see: transition-energetique.gouv.mc/BD2M

The Coach will use the conclusions of the building energy audit to reduce the power of the new equipment to a minimum, by suggesting (or not) associated building envelope works (replacement of single glazing, external thermal insulation, etc.), and will be responsible for drafting the applications for the relevant subsidies.

The cost of the service and the environmental programme delivered by the Coach, which will combine technical proposals and costings, including potential subsidies, will be fully covered by the subsidy (capped at €5,000). 

To encourage co-owned buildings to carry out the associated works, the proposed rate for the heat pump subsidy is flexible:

• 30% of the cost of the equipment and required surveys for installation of a heat pump only
• An additional 5% payment is available for a heat pump that also supplies domestic hot water
• And a bonus payment of 20% of the subsidised cost of the heat pump if associated works are carried out to improve energy efficiency beyond what is required by the regulations (replacing woodwork, wall insulation, etc.) and/or if innovative technology is used (wastewater heat pump, geothermal, etc.)

Two caps are envisaged, depending on the size of the co-owned building:

• €4,000 per apartment or main lot for small buildings (with fewer than 20 apartments/main lots) 
• €1,000 per apartment or main lot for other buildings

These caps will be adapted to ensure consistency with any additional payments (+5%) and bonuses (+20%).

If innovative technology is used, a cap of €4,000 per apartment or main lot is available regardless of the size of the building. Innovative heat pumps that use wastewater, groundwater or geothermal energy are the most efficient, but require significant investment (circular heat exchanger, probes, etc.). Thanks to the subsidy, they will be as competitive as less efficient but cheaper solutions (air-air heat pumps); the latter are not covered by the subsidy.

The scheme only applies to buildings outside the scope of the ocean thermal energy loops, or with proof from the concession holder that it is technically not feasible to connect the building to the loop. 

Timeframe: Subsidy payments will be made by no later than 30 September 2024, on the basis of invoices.

Procedures

The following may apply for this assistance:

• The property owner in their own name
• The authorised representative of jointly owned properties where there are a number of joint owners
• The legal entity which owns the building
• Entire co-ownership groups, which may comprise private or public owners, via the managing agent or representative, where there is no legally established managing agent

Eligible buildings must:

• Be located within Monaco
• Be a residential, tertiary or mixed-use building
• Have had an energy audit carried out
• Be subject to renovation not demolition/rebuilding

For assistance in drafting and submitting applications for this heat pump subsidy, contact: transition-energetique@gouv.mc / (+377) 98 98 47 59.

To obtain the form for requesting the subsidy, you can:

• Download it here:
  Formulaire de demande de subvention PROGRAMME PAC (389-0029_12-2022)

  PDF269.7 kB
• Collect it from Mission for Energy Transition

• A spreadsheet setting out the key administrative data for the project
  The template can be downloaded here:
  Tableau récapitulatif des données PAC

  XLSX13.6 kB
   
• The form for requesting the subsidy downloaded during step 1
• The invoices, certified as having been paid, for the environmental programme, surveys and work
• The applicant’s bank account details
• The environmental programme put together by the Coach
• Authorisation from the Technical Commission for Health, Safety and Environmental Protection to change the building’s energy generation system
• Supporting document for the applicant:
  • A certificate of ownership or a copy of power of attorney in the case of representation by a proxy
  • For condominiums, a copy of the proceedings of the general meeting at which the work was approved, mentioning the agent appointed to represent the co-owners

Applications for the subsidy must be:

• Sent by email to the Mission for Energy Transition: transition-energetique@gouv.mc
• Submitted to the Mission for Energy Transition at the following address:
  18, Allée Lazare Sauvaigo
  98000 Monaco

Payment of the aid is subject to approval of this file.