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The CRE has made further cuts to the feed-in tariff. Residential BIPV applications amounted to 37.4MW and non-residential applications were 102.4MW resulting in a decrease to the FiT of 4.5% and 9.5% respectively. Ground-mounted installations will fall to €0.1079 and residential BIPV arrays have been set to a maximum of €0.1934.
After much toing and froing, the French government has released a draft of the decree administering a 10% bonus when manufacturers use modules that are at least 60% of European origin. Following submission to the Supreme Council of Energy. The Union of Renewable Energy and the Liaison Committee for Renewable Energy, will then publish its response in the Official Journal before the first round of presidential elections this month. The draft order will apply to facilities whose connection request is filed on or after January 1, 2013.
Effective January 1, 2012, the government has changed the feed-in tariff. For residential PV systems, it is down by 4.5% and for all other types of facilities it is down by 9.5%.
The Commission for Energy Regulation (CRE) has published the tariff rates for the final trimester between October 1, 2011 and December 31, 2011. For residential installations, at the lower end of the scale (up to 9kW), the rate has been set at €0.4063/kWh – a 4.5% decrease on the summer price of €0.4255/kWh. At the higher end, 36kW – 100kW, the rate has been set at €0.2361/kWh – a 12.2% decrease on the summer rate of €0.2609/kWh.
Following the suspension of solar production at the beginning of 2011, in order for the government to be able to consider possibilities for cost-effective utilization of solar power, the government launched a tender on PV solar installations. Candidates are required to submit their tenders by February 8, 2012. The CRE create a potential list of winners to be handed to the Minister of Energy four months later, who then publishes the winners.
The government is yet to make a formal decision on the state of FiTs in France. Perhaps after the presidential elections are out of the way next year, France will be ready to take a more confident step forward towards solar power.
Photovoltaic systems with a capacity of over 100kW in France will now receive a reduced feed-in tariff rate according to the country’s environment minister. Nathalie Kosciuso-Morizet has revealed the new rate of €0.12 per kWh, which will come into effect today and apply to all systems regardless of whether they are installed on a roof or open-space.
According to latest reports, open-space systems are faced with cutbacks as high as 57% compared to remuneration in September 2010, while roof-top systems will face reductions of up to 70%. Feed-in tariffs for small PV systems are, momentarily, to be reduced by 20%. Over the course of the year, quarterly declines of 10 percentage points will come into force.
“This step will see the comparably high PV tariffs in France adjusted in line with those of neighbouring countries,” said Markus Monssen-Wackerbeck, head of energy and utilities at EuPD Research. “Such adjustments are ambitious but nonetheless necessary for the long term remedy of PV price divergences in various national markets.”
As a result of these changes in French solar funding, market experts estimate that parts of solar projects currently in the planning phase may not now go ahead. According to sources, there were projects in the pipeline of 5.3GW at the start of the halt in construction ordered by the Government in December 2010. Some had already received building as well as net connection approval. Others believe that the figure for projects in the planning phase is over 3GW.
“The industry should use this pressure to bring high systems prices in the country down to a competitive, European level,” continued Hoehner. Figures from the current European PriceMonitor published by EuPD Research show that, on average, the costs for a French PV system under 10kW are about €4,400 and peak at €6,000. Systems between 10 and 100kW cost approximately €3,860.
However, market experts at EuPD Research see a downward trend in installed capacity as likely. “The market will consolidate in the next months, yet France still has considerable untapped potential in the private roof-top sector. Manufacturers that respond to this increased price pressure and, by highlighting their first rate quality and strong brand name, position themselves in the right segment will survive these tough changes,” concludes Monssen-Wackerbeck.
France revised its feed-in tariff rates down from the original proposals in September 2009 in order to fit in with the evolving market. The rates included an increase in some ground-mounted and BIPV tariffs, as well as some decreases. These changes were implemented on January 1, 2010.
As part of the revised tariff, a distinction was also made between BIPV systems that integrate solar technology in a highly aesthetic manner and buildings that integrate in a simplified manner. The traditional BIPV incentive was been reduced, while ground mounted subsidies offered a premium for systems installed in cloudier areas.
The changes to the BIPV tariff include a decrease in fully integrated roofing systems for residential/health/agricultural buildings. These installations now receive a FiT of €0.58/kWh in 2010 and 2011, up from the 2009 FiT of €0.55/kWh but down from the September proposal of €0.60/kWh. Commercial/industrial buildings will now receive a FiT of €0.50/kWh while simplified BIPV installations will receive a FiT of €0.42/kWh, down from the 2009 FiT of €0.55/kWh and below the September proposal of €0.45/kWh.
The French Government has also announced that it will halt all plans for new solar projects, except residential systems less than 3kW, in a bid to end a "veritable speculative bubble" that has emerged in the industry. For bigger ventures, the Government plans to pass a decree "to temporarily suspend the registration of new projects." This move goes against recent speculation that the feed-in tariff rate would be reduced yet again.
"The flourishing of solar in France, which is faster than expected, comes at a cost to local Government and consumers," explained Prime Minister, Francois Fillon. "Development relies on a feed-in tariff for electricity that is very favourable to producers."
The Prime Minister announced that a new regulatory framework would be put in place by March 2011, a framework which will be aimed at keeping the ever-increasing installation figures at a reasonable level. Long-term targets for solar development have already been surpassed "justifying" the new rules.
