The decree amending support for small photovoltaic systems published in the Official Journal, the collapse of the sector temporarily avoided but self-consumption sacrificed

The decree, which will come into force on March 28, sets out "the conditions for purchasing electricity produced by installations installed on buildings, sheds or shade structures using photovoltaic solar energy, with an installed peak power of less than or equal to 500 kilowatts" (kWp, kilowatt-peak).

It follows a consultation launched on February 12 by the government and was the subject of opinions from the Energy Regulatory Commission (CRE) and the Higher Energy Council (CSE) as well as discussions with stakeholders in the energy sector, recalls the Ministry of Energy.

For Bercy, "these various consultations have made it possible to arrive at a decree responding to the main concerns expressed by the stakeholders while preserving the initial ambition of the draft text submitted for consultation."

"This decree illustrates the method I am committed to," declared Marc Ferracci, the Minister of Energy: "staying the course of the multi-year energy trajectory, monitoring the impact on public finances, engaging with the sectors and, following this consultation, securing the development of photovoltaics, which is essential to securing our energy and our sovereignty."

In detail, support for the 0-9 kWc power segment, small photovoltaic systems for individuals, will be refocused on self-consumption with a reduction in the sales prices for surplus electricity and the investment bonus.

The industry requested that these price reductions only apply after the introduction of 5,5% VAT next October.

For larger projects (100-500 kWp), support will be provided on the basis of a simplified tendering system from the beginning of the second half of 2025, which will make it possible to control the volume of projects, according to Bercy.

The current tariff of 95 EUR/MWh will remain in effect until next June.

A bank guarantee system, amounting to €10.000, will also be implemented to restrict support to only truly completed projects. For communities undertaking photovoltaic projects, a favorable decision from the municipal council will replace this guarantee.

The industry has finally won its case regarding the "non-retroactivity" of the system, whereas initially, Bercy had planned for these changes to come into effect on February 1. "We have fully understood these difficulties and have therefore modified the effective date of the tariff order," the ministry said.

For SER and Enerplan, "the collapse of the sector has been temporarily avoided, but self-consumption has still been sacrificed and the risk of a moratorium persists."

Enerplan and the Renewable Energy Union (SER) learned, during discussions with the office of the Minister of Industry and Energy, of the decisions on support for small-scale solar energy on buildings and carports via the amendments made to the so-called S21 decree.

The industry is pleased to have been heard on the non-retroactivity of the measures, the freeze until July 1 of the tariff for the 100 to 500 kWc segment and the prospect of seeing simplified calls for tenders put in place quickly.

Other announcements, however, remain very unfavorable for solar photovoltaic. Thus, the residential segment will experience a threefold reduction in its premiums and rates, as soon as the new tariff decree comes into force, without these reductions coinciding with the implementation of the reduced VAT rate, which will only be applicable from October 1st. This accumulation of difficulties risks plunging a large number of small installers into several months of waiting without any construction sites, especially since the conditions for accessing the reduced VAT rate are still unknown. In the intermediate segment (from 9 to 100 and from 100 to 500), the quarterly decline formula remains extremely strong.

Finally, if the S21 tariff order is intended to be replaced by a call for tenders mechanism for the 100-500 kWc segment, many uncertainties remain, both on the volumes and on the regularity of the sessions which will be opened, leaving the risk of a very strong slowdown in the second half of the year.

Following this publication, Enerplan and the SER are calling for rapid exchanges to provide visibility to solar players: truly simplified calls for tenders for significant volumes from July 2025, reduced VAT conditions to be known as quickly as possible, without waiting for their implementation deadline next October.

For Daniel Bour, president of Enerplan: "I welcome the public authorities' consideration of the contributions of the industry, the CRE, and the Higher Energy Council. The mobilization of the profession has been decisive. The spectre of a moratorium is receding, but we must quickly get back around the discussion table to emerge from this transitional period and allow professionals to regain visibility after this chaotic period."

For Jules Nyssen, president of the SER: "The changes presented today are a step in the right direction, as they will prevent a sudden market collapse. However, it is imperative that the simplified tendering mechanism can replace this tariff order as early as next July, otherwise we will have only postponed this "cliff-edge effect" by a few months. And it is incomprehensible that the government did not wait for the reduced VAT rate to come into effect in order to partially offset the cuts imposed on self-consumption."

Illustrative image of the article via Depositphotos.com.