Several months after the decline in electricity purchase prices, which endangered many photovoltaic projects, the solar industry has high expectations regarding the decision issued by the government on September 8. This introduces, for the smallest residential projects (less than 9 peak kilowatts – kWp), a VAT reduction of 5.5%. However, with a condition from October 1: that the carbon footprint of the panels produced does not exceed certain thresholds, such as the amount of silver, cadmium and lead, but that the panels are also equipped with a management system to encourage self-consumption.
The reduction in VAT from 20% to 5.5% is eagerly awaited by French industry. This move actually compensates for the government’s reduction in prices and subsidies for solar power projects in March 2025, in order to make savings in a fast-growing market.
