P photovoltaic panels: impacts of the decline in feed-in tariffs and subsidies

Julien Moreau

Updated on:

In a context where renewable energies are playing an increasingly important role in the French energy landscape, the recent government decision to reduce purchase tariffs and the subsidies associated with photovoltaic panels has pleased some while worrying others. The consequences of this evolution are both economic and environmental and deserve to be analyzed. What are the true repercussions of these reductions for the sector and for households? What opportunities still lie ahead for future installers and solar energy producers? Let’s dive into this fascinating and complex topic.

Summary:

  • The new purchase regulations and their consequences
  • The drop in subsidies: a hard blow or a hidden opportunity?
  • Self-consumption: an imperative to adopt
  • Innovations and solutions in a changing market
  • Perceptions and future perspectives

The new purchase regulations and their consequences

On March 27, 2025, an order published by the government introduced new tariffs for the purchase of surplus electricity produced by photovoltaic panels. The figures speak for themselves: the purchase price of solar electricity for installations of less than 9 kWc has dropped from 12.7 euro cents to 4 euro cents per kilowatt-hour, a drastic reduction that may seem alarming to future investors.

This revision of purchase tariffs is part of a broader regulatory framework aimed at streamlining public support for renewable energies. The installations in question are mainly those of individuals, who for the most part are below this power level. The savings realized by the State are significant, but what about the impacts on the market?

Concerning declines

Industry stakeholders, such as representatives of Énerplan, warn against a potential slowdown in investments in photovoltaic panels. In particular, the elimination of total electricity sales for installations of less than 9 kWc, which had been in effect until then, could deter many future buyers. Instead of being able to sell their entire production, they must now turn to a self-consumption model with surplus sales.

To better understand this evolution, here are some key stats:

Type of support Previous tariff New tariff Realized savings
Purchase price of electricity 12.7 euro cents/kWh 4 euro cents/kWh 66% reduction
Self-consumption bonus (0-9 kWc) 160 €/kWc 80 €/kWc 50% reduction

A necessary but worrying regulation

For many, this reform seems to be a hard blow, especially when considering the importance of solar energy in the energy transition compared to the use of nuclear or fossil fuels. The government, on its part, justifies these orientations by the need to redefine investment criteria. The reality of the market and electricity prices also play a role: the current tariffs paid by EDF and Engie are far below those of conventional electricity, leading to a lack of attractiveness for novice investors in the renewable energy sector.

Nevertheless, it may be interesting to examine these changes from a broader perspective, particularly by looking at their long-term effects on the sector’s development and the cost of installations for households.

The drop in subsidies: a hard blow or a hidden opportunity?

The decrease in subsidies for residential solar installations has raised concerns, but it could also be the moment to redefine expectations. Subsidies play a key role in the investment decision, but the question remains: how can these changes influence the solar landscape?

What about the self-consumption bonuses?

With the latest reform, the self-consumption bonus has been adjusted for installations up to 9 kWc. Even though its amount has been reduced to 80 €/kWc, there is a significant counterpart: the VAT on the installation of solar systems will drop to 5.5% starting in October 2025.

This means that it could still be profitable when considering installation costs. Indeed, the fiscal restructuring could readjust the accessibility path to panels. With companies like Valoe or Héliowatt adopting more efficient systems, many households could compensate for this drop in subsidies by significantly reducing costs when purchasing equipment. Installations that perform very well in energy efficiency can reduce dependence on the grid and electricity bills, thus offering great long-term satisfaction.

The necessity of evaluating new needs

This could also be the time to rethink new energy management practices. It is crucial for households to adopt tools to manage their consumption more effectively. Focusing on self-consumption becomes not only a necessity but also an opportunity to embark on a shift towards more economically sustainable behaviors. For example, the use of consumption control devices can lead to an increase in self-consumption from 32% to 50%, thus compensating for the drop in the purchase tariff.

Self-consumption: an imperative to adopt

Self-consumption undoubtedly presents itself as a solution for the future. Coordinating consumption to make the most of photovoltaic panels is now a necessity in the current context. The question that arises is how to optimize this self-consumption to reduce dependence on the electrical grid and maximize yield?

Strategies to maximize self-consumption

There are various strategies that photovoltaic panel owners can adopt to improve their energy efficiency. Some practices to consider include:

  • Programming appliances to operate during peak electricity production periods. 🕒
  • Installing energy storage systems, allowing excess energy to be kept for later use. 🔋
  • Using electric vehicles as mobile batteries to store energy. 🚗

By taking these measures, not only can households reduce their electricity costs, but they also contribute to the long-awaited energy transition.

Self-consumption strategies Advantages
Programming appliances Reduction of electricity bills and maximization of solar electricity production use. 💰
Storage systems Promotes energy autonomy for households. ⚡
Electric vehicles Ability to store energy for deferred use. 🚗

Innovations and solutions in a changing market

As purchase tariffs and subsidies evolve, the solar industry is not lacking in creative ideas to adapt. Manufacturers of photovoltaic panels, such as Photowatt and Systovi, are developing new and more efficient technologies. These advances could facilitate the installation and use of solar panels at a reduced cost.

New technologies as a lever for success

Technological innovations play a crucial role in the sustainability of the sector. Here are some interesting developments:

  • Using advanced materials to maximize the efficiency of photovoltaic cells. 🌍
  • Development of solar tracking systems that optimize energy production. 🌞
  • Integration of artificial intelligence to manage energy flows. 🤖

Companies like Groupe Solaire and Eurener are at the forefront of this revolution. By refining their technologies, they facilitate access to more powerful and less costly energy systems. This bodes well for the sector’s future, even though economic challenges remain.

Perceptions and future perspectives

Any change is often approached with caution in a sector as dynamic as solar energy. The impact of the drop in purchase tariffs and subsidies may raise concerns among some stakeholders, but it could also catalyze new dynamics. The repercussions on consumer behavior are also to be closely monitored.

Consumer expectations in light of new regulations

Individuals, as energy consumers, face a decisive choice: continue to invest in solar energy or turn to solutions offered by electricity providers such as EDF and Engie. The question arises as to how these providers will react and adjust their offers accordingly. Does the old surplus sale model still have a place, or will users turn towards self-consumption as the preferred mode?

With the climate challenge continuing to grow, it is crucial to revitalize the perception of renewable energies. Promoting the benefits of solar energy and the essential role each household plays in the energy transition becomes even more relevant.

FAQ

What are the main consequences of the drop in purchase tariffs?

The main consequences include the reduction in the attractiveness of investments in solar panels, potentially fewer installations, and a greater reliance on self-consumption.

How can the drop in self-consumption bonuses be compensated?

The reduction of VAT on installations to 5.5% planned for October 2025 may help balance costs, making the installation of solar panels more affordable even with reduced bonuses.

Why is it necessary to optimize self-consumption?

Optimizing self-consumption allows households to reduce electricity bills and increase energy self-sufficiency in the face of high market prices.

What innovations improve the efficiency of photovoltaic panels?

Advanced materials, solar tracking systems, and artificial intelligence are some of the innovations that optimize solar energy production.

What is the importance of the perception of renewable energies?

Improved understanding and positive perception of renewable energies are essential to support the energy transition and encourage investments in this sector.