Third-party financing, a French innovation to drastically upscale energy efficient home renovation

6 July 2021

The ORFEE project works with four third-party financing companies (sociétés de tiers financement, or “STFs”) to ensure that French homeowners receive high-quality technical support and affordable financing for their energy efficient home renovation projects. However, what exactly are STFs? As can be deducted from their name, the underlying principle for a STF consists in a third party assuming the financing for a building renovation. Subsequently, the beneficiary of this renovation re-pays the third party financier through instalments which equal the savings generated by virtue of a more efficient building or home. Once the repayment is fulfilled, the beneficiary enjoys the generated savings in full.

noT A classical financial institutions

Legally anchored in the French Construction and Housing Code since 2015, STFs are entities controlled by public authorities that integrate technical assistance with partial or total home renovation financing offers. As such, STFs should not be equated to classical financial institutions, nor are they bound by common banking regulations that hinder the agility needed to provide tailored financing solutions for energy efficient renovation projects. Another advantage vis à vis standard bank loans is that STFs fully integrate a technical assistance component, ensuring that homeowners feel completely supported throughout their otherwise complex and overwhelming renovation projects.


As such, STFs are a highly effective French mechanism that provides a holistic solution to ensure that effective integrated home renovation services are offered to citizens, stimulating the uptake of energy efficient interventions in the residential building stock. Be sure to keep reading our newsletter to stay up-to-date about the progress made by STFs in the ORFEE project, catalysing the French Renovation Wave!