The Energy Regulatory Commission recommends adjustments to the draft order to support small photovoltaics

The main measures provided for in the draft decree on the so-called "S21" segment "are in line with controlling expenditure without blocking the deployment of the sector", the CRE believes in an opinion published on Monday.

This decree will revise the conditions for supporting photovoltaic installations on buildings, hangars or shade structures with an installed power of less than or equal to 500 kWc (kilowatt-peak), i.e. the smallest projects.

But, the CRE continues, it is necessary to adjust these draft orders "on certain points, in particular to avoid disruptions".

The energy regulator believes that the reduction in the support tariff proposed for the top of the "S21" segment, from 100 to 500 kWc, "is likely to contribute to limiting" connection requests without harming the development of the segment.

However, she notes that the slope of tariff degression envisaged in the event of exceeding the objectives set by the public authorities over a quarter is "too steep, unpredictable and likely to lead to excessive variations in tariffs from one quarter to the next".

Concerning the bottom of the "S21" segment, from 0 to 9 kWc, which mainly concerns individuals, she notes that the draft decree provides for a "very significant reduction in support conditions, in a context of exceeding objectives", which will lead "to a significant reduction in the profitability of projects".

However, she adds, this profitability "will have to be reassessed" after the entry into force of a reduction in the VAT rate to 5,5% for some of the installations in the segment, planned for October by the finance law.

But the "time" gap between the changes planned by the draft decree and the implementation of this new VAT rate constitutes "a potential difficulty", as do the uncertainties over the terms of eligibility for this reduced rate.

The Higher Energy Council (CSE) issued an opinion on Thursday making "several substantial modifications" to this draft tariff order in order to "avoid an abrupt halt to the deployment of solar roofs and photovoltaic canopies", according to the Renewable Energy Union (SER) and the union representing solar players, Enerplan.