Several months after the lowering of electricity purchase prices, jeopardizing numerous photovoltaic projects, the solar industry had high expectations of the decree published by the government on September 8. This introduces, for the smallest residential projects (less than 9 kilowatts peak – kWp), a reduction in VAT to 5.5%. Under conditions, however, since October 1: that the carbon footprint of the panels produced does not exceed a certain threshold, as do the quantities of silver, cadmium and lead, but also that they are equipped with a management system to encourage self-consumption.
This reduction in VAT, from 20% to 5.5%, was eagerly awaited by the French industry. This measure in fact compensated for the reduction in prices and subsidies for solar projects by the government in March 2025, in order to make savings in a rapidly developing market.
