Why France is reviewing reducing aid for solar panels

Controversy is brewing in the renewable energy sector in France after the government published a draft decree that will consider whether or not to reduce financial aid for some solar panel installations.

The draft decree, which will now be subject to consultation, was published by the Ministry of Industry and Energy on Wednesday, February 12.

The decree has two parts:

• One that relates to private individuals (installations with a power output of 0-9 kilowatt peak, kWp)

• One that relates to larger-scale installations (100 to 500 kWp)

For the private sector, the decree suggests that “support for this segment will be refocused on self-consumption”. This appears to imply that any smaller projects not intended to create electricity solely for the use of the householder will no longer receive government financial aid.

For other projects, the decree states that “the support tariff will be adjusted to preserve the economic equilibrium of the projects, while keeping public expenditure under control”.

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‘Refocused public support’

Solar panel installations are soaring in France, and broke records last year. Similarly, two large-scale projects are currently in development: Holosolis in Hambach (Moselle), and Carbon in Fos sur Mer (Bouches du Rhône), and are aiming to begin production by the end of this year (2025).

Minister for Industry and Energy Marc Ferracci defended the proposals, stating (as reported by Le Figaro): “The support given to solar panels since the early 2000s has enabled this sector to develop its skills. Public support can now be refocused on the main objectives of the various segments [including self-consumption by private individuals]. “At the same time, we are working to ensure…the introduction of criteria to encourage French and European industrial supply,” he said.

With the new proposals, the government appears to be turning its focus towards the national nuclear industry, and seeking to slow down the spread of local, small electricity production centres. These can be costly to manage and do not always correspond to local or national energy needs, critics say.

The government has also said that there is a risk that the solar panel industry will become saturated, with individuals and companies increasingly turning towards European producers due to the US sanction imposed on Chinese solar panel manufacturers.

‘Thousands of jobs at risk’

Some representatives from the solar panel industry have responded with concern to the proposed decree.

Renewable energy union le Syndicat des énergies renouvelables issued a statement saying: “The developments announced amount - in practice - to putting an abrupt stop to all future solar projects on medium-sized roofs and car parks in the short term, thereby putting at risk the viability of hundreds of businesses and thousands of jobs.”