Impact of Residential Retrofits on Gas and Electricity Consumption in France

This study examines the impact of residential energy retrofits on household energy consumption in France using smart meter data from nearly 2,500 Hello Watt users, using a two-period difference-in-differences design. The dataset combines daily electricity and gas consumption collected through smart meters, hourly temperatures from Météo France, and user-declared home and retrofit information. As a control, we use a group composed of homes of Hello Watt users that are similar to the treated homes, but did not undergo any renovations. The average treatment effect on the treated is estimated with the estimator of Sant'Anna & Zhao (2020). Estimates are reported by energy source (electricity vs. gas) and by retrofit type. The retrofit measures considered are limited to single interventions: wall insulation, attic insulation, floor insulation, installation of an air-to-air heat pump, or installation of an air-to-water heat pump. A comprehensive retrofit is defined separately as the simultaneous implementation of at least two of these measures. Our results show that insulation works cause a significant decrease in both electricity and gas consumption (3% to 13% and 5% to 16% respectively, depending on the retrofit type). We also estimate the reduction on the heating consumption only (7% to 27% for electrical heating and 7% to 19% for gas heating). We also study retrofits that consist in replacing a gas boiler with an air-to-water heat pump, resulting in a cut of 85% in carbon emissions.