The loan from a home savings plan (PEL) exclusively finances operations related to the primary residence. Among these operations, renovations hold a central place, but their exact scope remains unclear for many savers. Insulation, extension, boiler replacement, installation of solar panels: not all projects are treated equally in the eyes of the regulations.
PEL Loan and Renovations: A Non-Negotiable Primary Residence Condition
Before detailing the categories of renovations, one point deserves to be clearly stated. The PEL loan only finances the primary residence of the holder. A secondary home, a rental investment, or a professional premises are excluded, regardless of the nature of the planned project.
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This restriction applies to both purchase and construction as well as renovations. The property in question must be the one where the borrower actually resides. Checking this criterion before preparing a file avoids wasting time with the managing bank of the PEL.
To consult in detail the list of eligible renovations for the PEL loan, each regulatory category is described with its specific conditions.
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Thermal Insulation Renovations Funded by the PEL Loan
Thermal insulation constitutes the first major category of eligible renovations. The scope covers specific interventions, not a global renovation left to the borrower’s discretion.
- Installation of shutters, double glazing, or double windows to reduce heat loss through openings.
- Insulation of walls, floors, or ceilings under the roof, as well as facade walls.
- Installation of seals or devices on ventilation openings and existing openings.
These renovations aim at the performance of the building itself. Replacing a single-glazed window with double glazing falls within this scope. Installing a reversible air conditioner, on the other hand, falls into another category (heating improvement or new energy, depending on the case).
Heating Improvement and Use of New Energies
The PEL loan distinguishes two families of renovations related to energy, often mistakenly confused.
Heating Improvement Renovations
This category covers the replacement or optimization of the existing system. Specifically, it includes the installation of thermostatic valves, replacement of boilers or renewal of burners, and insulation of the heating installation.
Measurement and thermal regulation devices are also eligible. In the case of collective heating, devices allowing for better distribution of costs among occupants according to their individual consumption fall within the scope.
New Energy Techniques or Sources
The regulatory text provides for a category dedicated to installations that use new techniques or sources of energy. Installing thermal solar panels or a heat pump falls within this framework, provided that the equipment serves the primary residence.
The line between heating improvement and new energy may seem thin. The distinguishing criterion lies in the technology: replacing a gas boiler with a more efficient gas boiler is considered an improvement, while switching to a geothermal heat pump falls under new energy.
Extension, Elevation, and Expansion Renovations of the Residence
Renovations for the extension of the primary residence are eligible for the PEL loan. The term “extension” encompasses elevation, the construction of an additional room, or the conversion of habitable attics.
This type of project often represents a significant budget. The ceiling for the PEL loan, set at €92,000, can cover a significant portion of the operation. Loan rights from a CEL can be combined with those from the PEL, but the total remains capped at this same amount of €92,000.
Another point to keep in mind: the repayment period for the home savings loan can range from 2 to 15 years. For an extension project, opting for a longer duration allows for smoothing out the monthly payments, but the amount that can be borrowed directly depends on the interest accrued during the savings phase.
PEL Loan Rate: A Parameter That Varies According to the Plan Generation
The loan rate is set at the time of the PEL opening, not at the time of the loan request. This mechanism has a direct consequence on the financial relevance of the arrangement.
For PELs opened from January 1, 2026, the loan rate is set at 3.20%, with a savings remuneration of 2% gross (or 1.40% net after deductions). This loan rate remains competitive or not depending on the evolution of market rates at the time the holder wishes to borrow.
PEL accounts opened during earlier periods may offer very different loan rates, sometimes more advantageous, sometimes less. Comparing the rate of one’s PEL with traditional bank offers before embarking on a renovation loan remains the most reliable approach.
Automatic Closure at 15 Years for Recent PELs
PEL accounts opened since March 1, 2011, are automatically closed on their fifteenth anniversary. This deadline imposes a schedule: the renovation project must be initiated before the plan closes to benefit from the accumulated loan rights. Missing this date without having mobilized the loan results in losing the benefit of the guaranteed rate.
The PEL loan remains a targeted financing tool, reserved for specific renovations on the primary residence. Its relevance depends as much on the nature of the project as on the generation of the plan held. Before submitting a file, checking the exact eligibility of the planned renovations and comparing the guaranteed rate with market conditions helps avoid a financial arrangement less favorable than a traditional renovation loan.