1. What changes are planned?

The new compensation rates affect all photovoltaic systems with an output between 9 and 100 kW. In future, operators will receive a reduced feed-in tariff of 6.17 cents/kWh. The one-off premiums are staggered depending on the size of the system: 160 euros per kW for systems from 9 to 36 kW and 80 euros per kW for systems between 36 and 100 kW.

Systems with an output of less than 9 kW are not affected. They continue to receive 4 cents per kWh and 80 euros/kW as a one-off premium. This means that private households should continue to have planning security and contribute to the expansion of solar energy.

2. Reactions from the solar industry

The cuts are causing unrest in the industry. Enerplan, the French solar association, warns of a decline in the mid-market segment. Systems on public buildings, commercial roofs or in cooperative ownership are particularly affected.

There are also critical voices from Germany. Robert Busch, managing director of the Federal Association of the New Energy Industry (BNE), emphasizes: “Without accompanying measures to promote self-consumption and flexible use, such cuts could seriously disrupt market dynamics.”

3. Impact on project financing

Reducing the feed-in tariff changes the economic viability of many projects. Systems that were calculated based on long-term feed-in revenues must be reassessed. Financing that is based on guaranteed returns is particularly coming under pressure. Increased material costs, interest rate increases and disrupted supply chains are making the situation even worse.

For investors and operators, this means that anyone who wants to continue to operate economically must rely more on their own consumption and alternative marketing.

4. Market outlook for France

France is one of the most important solar markets in Europe. However, the current reform could represent a turning point: in the future, the focus will be on self-consumption, storage technologies and decentralized use. The classic full feed-in is becoming increasingly unattractive.

Planners and developers must adapt to new conditions and increasingly rely on economically viable, technologically innovative concepts.

At the same time, political pressure is growing to further promote the expansion of renewable energies despite funding cuts. National expansion targets and EU requirements remain ambitious – and make it clear that the solar sector must find new ways to remain competitive. Anyone who now relies on smart energy networking, digital control and cross-sector solutions can actively shape the upheaval and benefit from the change.

5. New business models required

The reform is forcing many operators to rethink. Anyone who relies on PPA contracts, tenant electricity or district solutions with storage technology can be successful even under more stringent conditions. Those who establish new models early on secure important competitive advantages in the French solar market.

At the same time, the technical demands on planning and implementation will increase. Operators need to become more efficient not only economically, but also energetically – for example by combining solar power, heat pumps, storage and intelligent load management. Cooperations with municipal utilities, companies or housing associations could help to open up new value chains and make projects attractive even without high feed-in tariffs.