Financial support for energy improvement and renewable energy
1 - Introduction: Tax deductions in Geneva
The Department of the Territory, in partnership with the Industrial Services of Geneva, is developing an energy transition strategy that focuses on three main areas: Firstly, the control and reduction of energy demand in buildings. Secondly, the development of renewable energies and the use of local energy resources. And finally, the mobilisation of private and public actors to achieve the energy transition.
Projects that fall within the lines of these three axes are financially encouraged through various measures, including;
- Apply for a grant for an energy efficiency or indigenous renewable energy project
- Obtaining tax deductions for energy improvements, such as replacing single glazing with triple glazing.
- Benefit from the additional property tax exemption and thus obtain an HPE/THPE certificate
- Making energy renovation of rental buildings profitable by using the GCP
- Obtaining a loan or loan guarantee
- Improvement of the Land Use Index
- Financial contributions under the Monument, Nature and Site Protection Act
- Public authorities: Subsidies energy fund L 2 40
2 - Subsidy: energy efficiency and renewable energy
The program of Subsidies 2023 of the canton of Geneva is now available. This year, an envelope of 35 million francs is available to promote renovations and energy optimizations of Geneva's buildings.
Applying for a grant for energy efficiency in a building
In summary, Subsidies will be granted to projects that fall under the following description:
- Energy diagnostics (CECB®Plus) to assess the current state of affairs and determine possible improvement measures;
- Improving the thermal envelope (or insulation) of buildings;
- Improvement of technical installations such as ventilation, lighting and heating systems, heat recovery and replacement of fossil fuels with indigenous renewable energies;
- The development of energy infrastructure, such as photovoltaics or solar thermal collectors;
- The overall commitment leading to a Minergie Renovation and Minergie-P standard or to the improvement of several classes CECB® ;
- Strategic projects; i.e. projects outside the scale that have an interesting potential;
- The improvement of professional skills in the field of energy technology and everything related to it (training, information and advice).
3 - Tax deductions in Geneva for energy improvements
As of 1 January 2022, energy saving expenses are now considered as maintenance costs. This applies if they meet the definition given by the FTA in the annex to Information Notice No. 1/2022.
These expenses include, for example, the replacement of a boiler (oil/gas) by a non-fossil fuel energy (thermal network, heat pump, biomass), or the installation of window frames with double or triple insulating glass instead of single glazing in order to reduce the thermal consumption of the building. Finally, the installation of photovoltaic and thermal panels
4 - Deductibility of maintenance costs for private buildings
Effective immediately, this notice cancels and replaces notice 1/2021 dated February 1, 2021. The following is the legend and acronyms used for this document. (Notice 1/2022 - Deductibility of Maintenance Expenses on Privately Owned Buildingsn.d.)
Legend (from (Notice 1/2022 - Deductibility of Maintenance Expenses for Privately Owned Buildingsn.d.):
ECO: Energy saving and environmental investments that are deductible according to information no. 1/2021. These investments trigger an increase in the value of the property but are nevertheless qualified as deductible expenses due to their purpose. Maintenance expenses of an ecological nature that do not increase the value of the building must be indicated under the heading of maintenance expenses.
This table (Notice 1/2022) allows the client to situate himself and to understand what will increase the value of the building. Typically, a new external insulation of the facades is put in the ECO category.
5 - Tax deductions in Geneva: wealth tax
As a result of an energy renovation, the tax value of the property will not be increased in these cases, thus not leading to an increase in wealth tax and taxes.
All this with the aim of further promoting homeowners to act on energy renovation and efficiency.
6 - Bibliography
Tax Information 1/2021-Deductibility of Maintenance Expenses for Private Buildings. (n.d.). ge.ch. Retrieved February 28, 2022, from https://www.ge.ch/node/23670
Notice 1/2022-Deductibility of Maintenance Expenses for Private Buildings. (n.d.). ge.ch. Retrieved February 28, 2022, from https://www.ge.ch/node/27481
GEnergie Subsidies 2023: bit.ly/3q9js3j
Martin Borkovec
martin.borkovec@ik.me
Master Energy and Environment (HES-SO)
Company: Santandrea Energie Expert
Date: 28.02.2022
