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Feed-in tariff for solar energy 2010

Feed-in tariff levels for electricity produced from solar energy have been fixed by the French government. The attractive rate of €0.58/kWh, which the government says is the highest in the world, has been set in order to accelerate the development of photovoltaic energy in private homes.

The €0.58/kWh rate will be maintained for systems "integrated into the building frame", where these are integrated into buildings used for residential, educational or health purposes (buildings which pose significant architectural or visual challenges, where the installation of photovoltaic systems is generally expensive due to technical difficulties and the absence of economies of scale). For other buildings (office blocks, industrial, commercial and agricultural buildings etc), the rate is set at €0.50/kWh. The rules for integration into building frames have been improved, and consequently this rate encourages optimal architectural and aesthetic solutions, and positions manufacturers and contractors, especially QualiPV-qualified professionals, within an innovative sector with high added-value. These "integrated into the building frame" rates are limited to existing buildings, except in the case of residential buildings for which both new and existing structures are subject to technical and architectural constraints.

Systems with "simplified integration into the building frame" will be eligible for a new rate, set at €0.42/kWh. The creation of this new rate will encourage the development of solar energy systems on buildings used for business purposes (industrial, commercial, agricultural, etc) where systems cannot always be completely integrated into the building frame. This rate is not therefore available to the general public.

Ground-mounted systems will still be eligible for a rate of €0.314/kWh. In addition, rates for a ground-mounted system with an output in excess of 250 kWp will now vary from €0.314/kWh in the sunniest regions of the French mainland to €0.377/kWp in the least sunny regions. The geographical variation in rates will allow for better distribution of solar power stations across the country.

Administrative procedures have been simplified as it is no longer necessary to declare the project to and obtain a certificate from the DREAL and DRIRE authorities. A signed statement is now all that is required to determine the rate to be applied. These new tariff arrangements apply to new projects only.

The tariff arrangements set in 2006 will continue to be applied to projects where a feed-in contract with EDF has already been applied for or for which a feed-in contract has already been signed. However, as a speculative bubble had developed since November 2009, the French government has decided that a new feed-in contract application under the new tariff must be made for every project where a feed-in contract application had been submitted on or after 1st November 2009 but for which a complete request for connection to the grid had not been made by 11th January 2010.

These rates are guaranteed until 2012.

Source: Ministry responsible for sustainable development.