France has proposed to slash FIT for the rooftop solar segment retroactively
This will majorly impact installations below 500 kW capacity, fear local associations
They demand status quo till a new mechanism is devised to replace it
The Ministry for Industry and Energy in France plans to lower incentives for rooftop solar installations for projects with a capacity of less than 500 kW. These measures will be in effect retroactively from February 1, 2025, once approved by the administration.
According to the ministry’s proposal, the feed-in-tariff (FIT) for rooftop solar installations within the 100 kW to 500 kW range will be lowered from €0.105/kWh to €0.095/kWh. For 0 kW to 9 kW systems, self-consumption will be encouraged with excess electricity to be bought for €0.04/kWh from the current rate of €0.127/kWh.
The FIT rate will remain the same for the 9 kW to 100 kW range, but the total eligible capacity will be fixed at 92 MW/quarter.
In a joint statement with the solar energy association Enerplan, the French association Renewable Energy Union (SER) said that this under-500 kW capacity segment falls under category S21. It believes this will ensure that no project is financially viable in 2025. “This actually amounts to establishing a moratorium, pending the establishment of a new support mechanism within an undefined timetable,” it added.
Warning of serious consequences for the sector, the associations said this abrupt change in policy will completely destabilize the market segment that saw thousands of installations last year, creating hundreds of jobs. This will also deny the benefits of additional income for the agricultural sector.
“Having an abundant supply of decarbonized electricity is an industrial asset and a sovereignty asset. But we must be consistent: where will we find the additional 170TWh in the next two years if we put our foot on the brakes on solar energy?" questioned SER President Jules NYSSEN.
Both associations argue that the government must continue with the incentives for this S21 segment until a new mechanism replaces it.
Solar energy consultancy TECSOL’s President Andre Joffre called the move a threat to the industry and employment. In a LinkedIn post, he wrote, “Rooftop photovoltaics represent a strategic pillar of French energy sovereignty, with a considerable economic impact: €800 million in spin-offs for the agricultural world and €4 billion in 2024 for local SMEs and craftsmen.”
Industry representatives are now demanding to meet the Prime Minister to reach a compromise to ensure sustainable energy development in the country.