How “Social” is “Social Leasing”?

Lessons from France (EVs) and Germany (Heat-as-a-Service)

[Download the report here]

The European Commission promotes “social leasing” of EVs and heat pumps as a tool to ease upfront costs for low-income households under the Social Climate Fund. Evidence from France and Germany, however, shows serious risks: rising tenant heating bills, weak consumer protection, hidden fees, exclusionary credit checks, and subsidies captured by providers rather than households. Without strong safeguards, social leasing risks becoming a subsidy for landlords and companies—failing the SCF’s requirement of 100% pass-on benefits to vulnerable households.