In France, future of small-scale solar power producers in limbo

France's Group of Individual Photovoltaic Electricity Producers (GPPEP), an association that defends the interests of small-scale solar producers, is warning of the consequences of recent announcements concerning self-consumption PV installations. pv magazine France spoke to Joël Mercy, president of the association, to discuss the repercussions to be expected for small-scale installations, particularly residential (3-9 kWp).

Cutting subsidies: an accepted measure, but too brutal

The drop in feed-in tariffs and incentives for self-consumption comes as no surprise to the industry. “We were among the first to follow this issue closely and to understand that the feed-in tariff was going to disappear sooner or later,” Mercy says. “We thought it would happen as early as 2019, or at least as soon as the feed-in tariff fell below the price of electricity.” It's for this reason that GPPEP has been advising private customers for some time not to sign up to the feed-in tariff. “We have no idea what the price of electricity will be in 20 years' time, so it's better not to tie our hands with such a long contract.”

According to the text presented to France's Higher Energy Council (CSE), which will issue its opinion on March 6, the feed-in tariff for surplus electricity could be reduced to 4 cents per kilowatt-hour. This measure would apply retroactively to all installations signed on or after February 1, 2025. In practical terms, this “loss” would in fact be offset by the reduction in VAT, “to within a few euros” according to Mercy. “The 5.5% VAT is ready and in place,” he confirms. “There are still a few technical details to be worked out, but it should be in place by October 1.”

But the real problem today is the brutality of the new measure. “Basically, we have nothing against it,” admits Mercy. “Many professionals share this opinion. What's a problem is the way it's happening, and above all the time lag: the reduced VAT is for October. The rate reduction is for February. If the two had arrived at the same time, we'd have had some consistency. Now we're left with eight months of total uncertainty. How are we going to make up for this delay?

The safe route under threat

For several years now, GPPEP has been supporting local authorities wishing to offer their residents efficient, economical and, above all, secure solar energy solutions. The system is based on group purchasing of equipment and working with trusted installers verified by the association. But this model is faltering in the face of the new situation.

“At the last local meetings, around 30% of participants said they were ready to commit to the secure route,” Mercy explains. “But as soon as we told them about the government's announcements, the reaction was unanimous: they'd rather wait.” This wait could last almost nine months, until the economic framework has been clarified. The problem: until then, many installers may not survive.

Mercy points to the the area of Grand Poitiers, whose secure pathway project illustrates this concern. “We contacted fifteen installers. None have replied. They are in a state of total uncertainty about their future.” If the government were to go back on schedule and align the rate cuts with the reduced VAT, “that would restore the balance,” says Mercy. “Households would have good visibility on their return on investment. But in any case, we'd recommend not committing to the feed-in tariff, which is too risky over 20 years.”

Without installers, who will repair small power plants?

If the CSE maintains the timetable as it stands, the consequences for the industry could be dramatic. “There will be carnage among installers,” Mercy warns. Many of them, weakened by the economic situation, risk closing their doors, leaving their customers with no one to turn to.

And this is where new risks emerge for producers already equipped. In France, for insurance reasons, installers are not allowed to work on installations they have not built themselves. “If your installer closes down, who's going to come and maintain or repair your system?” asks the GPPEP president. This problem has existed for several years, but it could become much worse as the market contracts.

Trade unions and professional organizations have long been alerting insurance companies to the need to create a dedicated breakdown service. To date, no viable solution has emerged. And yet, the issue is becoming urgent: some installations are now 15 to 20 years old, some of them integrated, a technique now largely abandoned. Of the 400,000 installations of this type still in service, how many will find an installer ready to intervene in the event of a breakdown or leak?

“If insurance companies don't take action, people won't install them,” Mercy warns. “This problem already existed, but it's becoming dramatic. Today, we have exactly the same interests as the industry professionals. We need a strong, healthy and competent industry.”