New French Policy To Back Solar PV Installations

• France has increased the limit of solar PV installations that do not have to enter tender process
• Eligible capacity range claiming fixed public support will be increased from 100 kW to 500 kW
• To lower FITs, it has fixed a limit of 3.8% instead of current regime of quarterly reductions which on October 1, 2020 would have meant 8.7% earlier

The French Ministry of Ecological Transition has introduced 2 new support measures to increase solar PV installations in the country and encourage breed of prosumers. Post mandatory consultations, these measures will find their way into the official decree.

The first measure increases a ceiling of solar PV projects from the current 100 kW to 500 kW which means projects with up to 500 kW capacity can claim fixed tariffs by the government and won't need to enter a tender call to claim the same. The ministry believes this would boost solar PV installations for larger roofs on buildings and contribute to achieving the objectives of the country's Multi-year Energy Program (PPE). Commercial and industrial (C&I) segment will also be encouraged to go in for onsite solar installations with this improvement.

Through the 2^nd measure, it has approved to maintain a sufficient level of financial support for the solar PV sector by controlling reduction in the purchase price under feed-in-tariffs (FIT). Currently it is revised every quarter automatically because of which 8.7% reduction was due from October 1, 2020, but will now to limited to 3.8%.

"Such a drop would not reflect the actual current trend in photovoltaic costs. The consequence would be to severely slow down the recovery of the sector. The Government will therefore limit this reduction in feed-in tariffs to 3.8%," stated the ministry.