Renewable energies generated over €2,1 billion in local tax revenue in 2024, according to the industry

Renewable energies in France generated more than 2,1 billion euros in local tax revenue in 2024, mainly benefiting municipalities and groups of municipalities, according to a study by the Renewable Energy Syndicate (SER) published on Tuesday, February 17.

They generate "significant, regular and structuring tax revenues, which support the development of local public policies, particularly in rural areas", argues the SER.

This unprecedented study, conducted with the energy-specialized firm Colombus Consulting, focuses on 2024, the last year for which figures are consolidated, explained Nicolas Goldberg, energy expert at the firm.

"The more the installed base grows, the more these revenues will increase," stressed Jules Nyssen, president of SER, as renewable energies are set to continue their deployment in France.

Of the more than 2,1 billion euros to be paid out in 2024 to municipalities, communities of municipalities, departments and regions, "more than half", or 1,2 billion euros, are "direct tax revenues", Mr. Goldberg specified.

Regarding the balance, 443 million euros come from business taxes related to these sectors (employment, land, local economic contribution) and 462 million euros from indirect taxes, mainly related to the generation of a share of VAT then paid to local authorities, due to the installation and maintenance of equipment.

These revenues "primarily benefit the local government" (77%), according to the SER, and this share even reaches 91% if only direct taxation is taken into account.

Moreover, the SER notes that this taxation "is independent of demographics and is based primarily on land," which constitutes "a real development opportunity for low-density areas."

With this study, the organization wants to respond to criticisms of renewable energies in the political class, some of whose members accuse them of weighing on public finances.

Among these renewable energies, the first of them in France, hydroelectricity, is the main contributor in terms of direct local taxation with 594 million euros in 2024, followed by onshore wind (212 million) and solar (132,6 million).

The others are marine renewable energies, geothermal energy, wood energy and domestic wood heating, biomethane and biofuels, waste recovery and aerothermal energy (heat pumps).

Illustrative image of the article via Depositphotos.com.