French PM compels banks to facilitate increased deployment of geothermal heat pumps

French Prime Minister François Bayrou has called on the support of banks to help ease the cost of installation of geothermal heat pumps in France. The statement was made as part of the PM’s speech during the opening of the 2025 French Geothermal Days in Biarritz, organized by French Association of Geothermal Professionals (AFPG).

Only one million French homes are equipped with them, with an average installation cost of €20,000, twice that of a gas boiler. The PM cites this as one of the major hurdles to wider adoption of the technology. “The key factor is purely financial,” declared the Prime Minister, “perhaps through the Caisse des Dépôts or the Banque Publique d’Investissement” (Public Investment Bank).” The PM stated this could erase the difference in installation costs.

“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 ,” he further added.

The current government has set a target of replacing half of gas boilers in individual homes with heat pumps within 20 years. The Prime Minister had previously cited geothermal as part of the government’s low-carbon strategy. In 2023, the French government launched an action plan aimed at quadrupling the rate of deployment of deep geothermal projects by 2035.

In a separate statement, the Arverne Group welcomed the announcements made by the Prime Minister during the event. In particular, the group welcomes:

• The increase of the regulatory threshold for surface geothermal projects from 0.5 MW to 2 MW, in order to free up and accelerate projects.
• The attention given to drilling jobs through the implementation of new training programs, as well as the relaxation of working time regulations on deep geothermal drilling sites.
• The ongoing collaboration with banks to help individuals spread out the investment cost of a geothermal installation, as a replacement for gas boilers.
• The strengthening of the network of geothermal facilitators in local territories, essential to raising awareness about the benefits of this still underused energy source.

“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. The challenge now lies in swiftly turning these intentions into action to scale up geothermal solutions across France.” said Pierre Brossollet, founder and Chairman & CEO of Arverne Group.

While this step marks a turning point, it must be part of a broader trajectory. A second set of announcements is expected in September, particularly regarding financial support. The Arverne Group hopes for:

• The strengthening of the Heat Fund and the need to secure it over multiple years to provide operators with long-term visibility.
• The implementation of new support mechanisms such as “Certificats d’Economie d’Energie” (Energy Savings Certificates).
• The alignment of energy taxation with decarbonization goals, including rebalancing taxes between gas and electricity – an essential condition for the development of geothermal energy.

Source: Banque des Territories and Arverne Group via Businesswire