A recent warning from French solar energy association Enerplan has been substantiated with the recent announcement that France will cut feed-in tariffs by 20%.
French Minister of Environment and Energy Delphine Batho intends to reduce the FiT from €0.1024 (US$0.1311) per kWh to €0.0840 (US$0.1076) per kWh retroactively from 1 October 2012.
It has also been confirmed that the government will cut FiT for PV plants between 100kW and 12MW, severely limiting any projects over 100kW along with ground-mounted plants.
Minister Batho’s reasoning behind this decision was, “The photovoltaic feed-in tariff is funded by the French through the CSPE (tax on electricity bill). However, the rate T5 – which applies to large plants, so mostly on the ground – has resulted in massive imports of panels which are then being dumped on the market. You can not use taxpayer money to reduce our trade deficit, more so with products suspected of being unfairly traded.”