The French government is set to implement a new solar subsidy program which departs significantly from both the current program and from the provisions outlined by Borloo back in November 2008. The new proposal includes slightly higher incentives for ground-based systems, lower incentives for simplified BIPV systems, a new incentive for highly integrated BIPV systems, and simplified administrative procedures to claim incentives. There is no incentive for non-integrated roof-top systems, which is at present the highest source of demand for most solar manufacturers.
The new proposals are viewed by many in the sector as positive, since they do not include a cap and the subsidy claiming process is expected to be streamlined to enable faster growth. The new French ground-based tariffs are also now more attractive than German ground-based tariffs (€0.285/kWh for 2010 in Germany vs. €0.328 - €0.394/kWh in France).
The most notable amongst all the changes, is the new BIPV tariff distinction between buildings that integrate solar technology in a highly aesthetic manner and buildings that integrate it in a simplified manner, for a minimum generation of 3 kW (minimum surface of 30 square-metres - professional buildings rather than residential). This new building distinction will become applicable by 1 June 2010. The tariff, if approved, will be among the highest, if not the highest in the world for solar PV: €0.602/kWh and has created quite a stir among French solar players.
Variable tariffs depending on solar resource
Potentially more groundbreaking, however, is the French proposal to offer solar PV tariffs for commercial projects (systems greater than 250 kW) differentiated by solar resource intensity. Wind energy tariffs in both France and Germany have varied by resource intensity since 2000, but this would be the first time resource intensity is used to calculate solar PV tariffs. If successful in the diverse climates of France, the concept could be adopted in large countries with highly variable climates such as the US, China, and Australia.
In principle, France will pay up to 20% more for solar PV generation in the cloudy north than in the sun-drenched south. For example, systems installed in the sunny southern city of Avignon will receive the base tariff of €0.328/kWh. In Paris, the tariff is based on an insolation factor of 1.15 times the base tariff or €0.377/kWh, while to the north of Paris in the cloudier Somme region, the insolation factor proposed in the draft regulation reaches a maximum of 1.20 and the tariff rises to €0.394/kWh.
Residential solar will be severely limited
In contrast to German policy, the proposed French programme will severely restrict residential solar systems. Two of France’s most prominent advocates of solar energy, solar PV installer Hespul and CLER (Comité de Liaison Energie Renouvelables,the principal umbrella group representing the French renewable energy industry and solar in particular), have applauding the proposal for its innovative features, but strongly criticise its short-sightedness. In a joint communiqué issued on 10 September, the two organisations said the proposal fell well short of what is needed and unduly favours multi-national developers over small distributed generators.
Residential rooftop solar systems are limited to less than 3 kW and the tariff of €0.338/kWh is insufficient in much of France, says Hespul’s Marc Jedliczka, even with tax subsidies. He warns that the current proposal will miss reaching the 14 million French rooftops that could use solar. For its part, CLER characterised the proposed tariffs as “unfair to the many for the benefit of the few.”
Furthermore, Hespul and CLER conclude that the French programme will further restrict the solar PV market in France because it establishes that rooftop panels must be in the “plane of the roof”, which will often mean panels must be flat and not mounted on racks, causing their productivity to fall.
The regulations must be approved by Minister Borloo sometime this autumn if they are to take effect in January 2010.
For additional information:
French Ministry of Ecology, Energy, Sustainable Development and Sea
