French solar sector warns of ‘economic catastrophe’ if proposed subsidy cuts go ahead

Facebook
Twitter
LinkedIn
Reddit
Email
Image: Akuo Energy.

French solar developers, financiers and utilities have said government plans to cut subsidies for PV project owners would lead to an “economic catastrophe” that could threaten the country’s energy transition.

A joint statement signed by executives from industry players including Voltalia, First Solar and Enphase Energy said the early termination of contracts would result in defaulted payments, job losses and the tightening of financial conditions that would slow the development of future PV projects.   

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The announcement was made after France’s National Assembly endorsed a government amendment to revise subsidies on the largest PV contracts signed between 2006 and 2010, as it aims to save billions of euros by 2030.

According to the country’s Ministry of Ecological Transition, the adjustments concern a few hundred contracts that generate “excessive” profits. All small and medium-sized PV installations of less than 250kWp are excluded from the proposed changes.

The ministry plans to examine contracts on a case-by-case basis to cover situations in which a subsidy reduction would compromise a site’s ability to continue operations. It said that savings made through the initiative will support the accelerated deployment of future renewable energy projects across France.

However, the joint industry statement – which was also signed by trade bodies SolarPower Europe and Enerplan – said the measure “would constitute an unprecedented impact”, adding that a large number of operations and maintenance contractors would not be able to recover.

The signatories said subsidies have helped create 17,000 jobs and enabled France’s PV sector to take off, making it possible to reduce costs. They warn that trimming the subsidies retroactively would lead to a deterioration of financing conditions, erosion in investor confidence and the loss of thousands of jobs.

French renewables association Syndicat des Energies Renouvelables (SER) said it regrets the proposals and has now called on the country’s senate to block the measure it describes as a “threat to the energy transition and climate objectives of our country”.

The French government has called for as much as 44.5GW of installed PV by 2028 as the country targets 33% renewables in its energy mix by the end of the decade. According to SER figures, installed PV reached 9.43GW at the end of last year.

France’s new coronavirus recovery package includes €30 billion to be spent on an “ecological transition” that will also spearhead low-carbon hydrogen production. When the stimulus was announced in September, French Prime Minister Jean Castex it is “first and foremost a plan intended to serve the climate and biodiversity”.

Read Next

July 2, 2025
Asset management firm Capital Dynamics has secured €110 million (US$129.4 million) in financing for three solar PV projects in Spain.
July 1, 2025
Spanish independent power producer (IPP) Zelestra has secured financing and reached financial close for its 220MW solar-plus-storage plant in Chile.
July 1, 2025
Independent power producer (IPP) Arevon Energy has closed a US$600 million credit facility to support its solar PV and energy storage portfolio in the US.
June 25, 2025
The French National Assembly has rejected a proposal to implement a moratorium on utility-scale solar and wind projects.
June 25, 2025
Australia’s National Electricity Market (NEM) achieved a new record high for solar PV and wind generation at 12,463MW.
June 23, 2025
Q Energy and Velto Renewables have inaugurated Europe’s largest floating solar power plant in the Haute-Marne region of France.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK