Walloon Renovation: Loans Replace Grants from October
The Walloon government has approved a sweeping reform of its residential renovation support system, set to take effect on 1 October 2026. The new framework replaces the current system of direct renovation grants with a loan-based model featuring mandatory energy audits, income-tested aid, and an annual capped budget designed to ensure long-term financial sustainability.
A Fundamental Shift in Approach
After 18 months of development, the government presented the final contours of the reform in first reading on 16 July, as reported by RTBF. The new system marks a decisive break from the current “Primes Habitation” grant scheme, which ends on 30 September 2026, and introduces two primary loan instruments: the Rénopack and the Rénoprêt.
According to the official government announcement, the Rénopack offers a 0% interest loan with partial debt forgiveness — effectively a built-in grant — for lower- and middle-income owner-occupiers. The Rénoprêt provides preferential-rate loans for higher-income households, landlords, and co-ownership associations.
Targeting the Worst-Performing Homes
The reform prioritises Wallonia’s most energy-inefficient dwellings, often called “energy sieves” (passoires énergétiques). Homes with a PEB (Performance Énergétique du Bâtiment) rating of G or F must reach at least label D, while those rated E must achieve label C. These categories represent approximately 54.4% of Wallonia’s housing stock — roughly 900,000 homes.
Maximum loan amounts have been raised to €75,000 per single-family home, up from €60,000 under the current system. For co-ownerships, the ceiling is set at €60,000 per housing unit, with overall caps of €600,000 for buildings with fewer than 20 units and €750,000 for larger co-ownerships. A zero-interest loan is also available for common areas.
Income-Based Aid Structure
Aid levels are determined by household income, as detailed in the government’s framework document:
| Category | Income Range | Interest Rate | Debt Reduction |
|---|---|---|---|
| C1 | Up to €28,900 | 0% | 50% |
| C2 | €28,900–€41,100 | 0% | 40% |
| C3 | €41,100–€67,100 | 0% | 15% |
| C4 | €67,100–€122,800 | Variable | 0% |
A deduction of €5,000 per dependent is applied to taxable income, and a 5% bonus is available for the use of eco-materials. Crucially, homeowners will not need to advance any money — the system processes eligibility and payment upfront.
Mandatory Energy Audits and Global Project Approach
A mandatory energy audit is now required for all applicants. The audit defines renovation priorities, plans the work sequence, and prevents situations where certain investments block future interventions. The audit itself is eligible for investment support.
A key innovation is the shift from item-by-item support to a global project approach. Aid is calculated on the total renovation project rather than individual work items, simplifying administration and encouraging comprehensive renovations.
Capped Budget for Financial Sustainability
Walloon Energy and Housing Minister Cécile Neven (MR) emphasised the importance of fiscal discipline under the new system. “Each year, we will set a budget during the budget conclave to allocate the budget for the following year,” Neven told RTBF. “When there is no more budget, there will be no more budget. But at least, we will avoid telling people that we no longer have money for Walloons who embark on renovation.”
This capped annual budget approach aims to prevent the cost overruns that plagued the previous grant system, which the government deemed “too generous and unaffordable.”
Industry Reaction and Implementation Timeline
The construction sector has responded with cautious optimism. Hugues Kempeneers, Director of Embuild Wallonie, welcomed the direction but urged clarity, as reported by Batireno.be: “These loans must above all be accessible to the greatest number. If access is too restrictive, the renovation dynamic will stall.”
The new system will be deployed progressively from 1 October 2026, initially building on existing services such as the Guichet Énergie and the Société wallonne du Crédit social. From 1 January 2028, the newly created Agence wallonne de l’Habitation will take over coordination, with a three-tier support system ranging from basic information to full project management.
What This Means for Homeowners
For Walloon homeowners, the reform represents both an opportunity and a challenge. Low-income households in energy-inefficient homes stand to benefit most, with up to 50% debt forgiveness on a 0% loan. However, those with higher incomes or homes already rated PEB D or above will find no direct support available.
With execution decrees still pending publication in the Moniteur belge, specific annual budget amounts remain unknown. Homeowners considering renovation are advised to assess their options before the current grant system expires on 30 September 2026.