How France is Incentivizing Solar Energy Through Feed-in Tariffs

Imagine this: A homeowner in Lyon installs a modest 9kW solar system. Instead of just saving on electricity, they begin earning €1,100 annually — guaranteed for 20 years. That’s not a dream; it’s the power of France feed-in tariffs.

Unlike net metering models, France’s FiT program pays solar producers for every kilowatt-hour they inject into the grid. This long-term approach has been a cornerstone of France’s energy transition, offering price stability, bankability, and ROI clarity to both homeowners and businesses.

But how exactly does it work? And is it still worth it in 2025 with solar costs falling and policy shifts under the EU’s RED III directive? This guide breaks it down.

France has installed 8.4 GW of rooftop PV under its FiT schemes — but uptake is slowing as reforms loom. Is now the time to act?

What Are Feed-in Tariffs and How Do They Work in France?

Feed-in tariffs (FiTs) in France are fixed payments offered to solar system owners for energy exported to the grid. Rather than offsetting consumption like net metering, FiTs turn your PV system into a revenue stream — typically via 20-year EDF contracts under the Obligation d’Achat program. Tariffs are structured by system size, updated quarterly, and designed to offer predictable returns.

How Feed-in Tariffs Differ from Net Metering

Most people confuse FiTs with net metering, but the difference is key.
Net metering offsets your bill with unused solar. France’s FiT pays you cash, regardless of your usage.

Key Differences:

• Net Metering: Credits only for surplus; subject to variable grid pricing
  
• FiTs: Fixed €/kWh rate for all exported energy, unaffected by time-of-use rates
  
• Self-consumption can be combined with FiTs if production exceeds demand
  

Takeaway: FiTs offer more stability for long-term planners and bank-friendly cash flows.

Current Tariff Categories: <3kW, 3–9kW, 9–100kW

Feed-in tariff eligibility and rates vary by size bracket. As of 2024:

• <3kW: ~€0.2349/kWh
  
• 3–9kW: ~€0.1996/kWh
  
• 9–100kW: ~€0.1362/kWh
  

These values apply to injection totale contracts (full production) and are adjusted quarterly by CRE (France’s Energy Regulatory Commission).

These rates remain higher than the average solar electricity price France, making them attractive even in 2025.

EDF Obligation d’Achat Program: 20-Year Contracts

The EDF OA program is the primary platform for selling solar power under FiTs.

• Contracts last 20 years
  
• Paid monthly based on grid injections (via Enedis metering)
  
• Indexed to inflation to preserve real ROI
  

This program ensures even small homeowners can benefit without entering the wholesale market or managing PPAs.

Why it matters: Banks and EPCs use these contracts to underwrite solar loans and simplify financial forecasting.

Feed-in Tariff Rates (2024–2025 Table)

Here’s a table of the latest French feed-in tariff rates (as of Q1 2025):

Who Qualifies and How to Apply for FiTs

While France feed-in tariffs are generous, not everyone qualifies by default. The eligibility rules depend heavily on your system size, roof type, and whether you’re exporting total production or only surplus energy. Missing a document or choosing the wrong injection model can delay approval by months — or disqualify the project altogether.

Residential Rooftop (3–9kW) Eligibility

For most French homeowners, the sweet spot lies in the 3 to 9kW range — qualifying them for high FiT rates while avoiding extra grid formalities.

To qualify:

• The system must be installed on a building (not ground-mount unless Agri-PV)
  
• Registered under the "injection totale" or "surplus" model
  
• Connected via Enedis with validated metering infrastructure
  
• Tariff request must be submitted within 18 months of the connection offer
  

This bracket remains the most subsidy-efficient zone, particularly for homes with daytime excess generation.

Agricultural & Commercial Rooftop Systems

Agricultural barns and commercial buildings (up to 100 kW) are also eligible — but the rules become stricter.

Key requirements:

• Building must be at least 5 years old and registered as a non-residential structure
  
• Must not have claimed Prime à l’Autoconsommation or CEE bonuses (dual subsidy ban)
  
• A BPU (Building Use Permit) may be required if retrofitting occurs
  

Commercial EPCs should align with CRE’s evolving caps and energy transition goals. Large rooftops that export full production often win higher ROI over time.

Documents, Timeline, and Where to Submit

Missing paperwork is the top cause of rejection. Below is the full checklist for a smooth application:

✅ Connection request (Demande de raccordement) via Enedis
✅ Proof of building ownership or authorization
✅ Contract with a certified installer (QualiPV label)
✅ Grid capacity confirmation from DSO
✅ Signed Obligation d’Achat (OA) contract
✅ CRE registration confirmation
✅ Start of Injection (Mise en service) notice

From submission to approval, expect 8–14 weeks for < 9kW systems and 12–20 weeks for > 9kW systems.

What Disqualifies an Application (Grid Connection, Dual Support, etc.)

Several traps can disqualify or delay FiT approval:

🚫 Dual Subsidy Rule: You can’t combine FiTs with France’s self-consumption bonuses or MaPrimeRénov’
🚫 Late Application: If you apply after commissioning, FiT eligibility is forfeited
🚫 Ground-Mounted Residential PV (outside Agri-PV schemes) often gets rejected
🚫 Lack of grid capacity in rural areas leads to injection caps or delays

Financial Impact of Feed-in Tariffs for Homeowners & Businesses

France’s feed-in tariff (FiT) system does more than reduce electricity bills — it transforms solar into a revenue-generating asset. Whether you export only surplus energy or your entire output, FiTs significantly accelerate ROI. But how much can you really earn? This section breaks it down by use case, tax implication, and expected payback across system sizes.

ROI Example: 6kW Residential System in Toulouse

Installing a 6kW rooftop PV in Toulouse offers a clear window into FiT-driven returns. Here’s how the math works out:

• System Cost: ~€11,500 (after TVA reduction)
  
• Annual Production: ~7,800 kWh/year
  
• Exported to Grid: ~4,800 kWh
  
• Feed-in Tariff: €0.135/kWh for <9kW (2024 Q2 rate)
  
• Annual Revenue: €648
  
• Bill Savings (self-consumed): €380
  
• Total Annual Benefit: €1,028
  
• Estimated Payback: ≈ 9.5 years, excluding bonuses
  

This makes FiTs one of the best ROI levers for homes with high daytime generation.

Income from Selling Surplus vs Full Injection

Before selecting a tariff contract, homeowners must choose between:

Surplus Injection (Autoconsommation + Vente de Surplus)

• Self-consume first, sell the rest
  
• Lower FiT rate but enjoy bill savings + revenue
  

Full Injection (Vente Totale)

• Export everything
  
• Higher FiT, but no on-site usage offset
  

Surplus injection tends to outperform for families home during the day; full injection benefits second homes or agri sites.

Taxation on Feed-in Earnings (Abattement Forfaitaire vs Micro-BIC)

FiT income is taxable in France — but small producers enjoy exemptions:

• < €305/year → fully tax-exempt
  
• €305–€70,000 → Abattement Forfaitaire (71% deduction, only 29% taxable)
  
• For systems > 9kW or commercial setups, income is filed under Micro-BIC
  

Many homeowners stay under the €305 cap by opting for 6–7kW systems, maximizing ROI without triggering taxation.

3 ROI Scenarios (With/Without FiT)

This illustrates why skipping FiT registration is a major missed opportunity.

Challenges and Limitations of France’s FiT System

While France feed-in tariffs are among the most structured in Europe, they’re not without friction. Applicants often encounter administrative delays, diminishing rates, or technical rejections — especially in grid-constrained zones. Understanding these limitations helps EPCs and homeowners avoid costly mistakes.

Tariff Degression & Quarterly Recalibration

France’s FiT rates are reviewed and adjusted quarterly by the CRE (Energy Regulatory Commission). As more capacity is added, tariffs may decline by 1.5–3% per quarter — a model known as tariff degression.

• A 9kW system in Q2 might earn €0.135/kWh
  
• By Q4, the same system may receive only €0.132/kWh
  

Delaying installation can mean a direct hit to lifetime earnings — timing matters.

Grid Saturation in Some Rural Zones

In lower-density areas, particularly in Occitanie and Nouvelle-Aquitaine, DSOs (like Enedis) report transformer saturation. This limits how much PV can connect or export.

• Some applications are paused pending upgrades
  
• Injection is capped or refused for larger systems
  

Always check the REE/Enedis capacity map before planning large FiT-linked systems.

Limits on Combining FiT with Other Incentives

France prohibits “double dipping” — you cannot combine FiT with:

• MaPrimeRénov’ tax rebates
  
• CEE (Certificats d’Economie d’Energie)
  
• Self-consumption bonuses
  

Choose either the FiT or self-consumption + bonus pathway. Mixing both leads to disqualification.

Long Approval Times from Enedis or Local DSO

Though digitalization has improved speed, Enedis still takes 6–12 weeks for final OA contract validation.

• Rural zones often longer
  
• Installer errors can add weeks
  

Build in buffer time when quoting ROI or commissioning dates.

How Feed-in Tariffs Stack Up Against Other French Incentives

France’s solar landscape isn’t limited to feed-in tariffs. Homeowners and businesses can also tap into self-consumption bonuses, tax credits, and reduced VAT rates. But which route pays best? This section offers a side-by-side view so you can make the smartest financial choice.

Feed-in Tariffs vs Prime à l’Autoconsommation

The Prime à l’Autoconsommation offers a fixed bonus for self-consuming solar, paid over 5 years. FiTs, meanwhile, pay per kWh exported to the grid.

• FiTs are ideal when export potential is high
  
• Self-consumption bonuses reward daytime usage
  

For homes with high self-use (e.g., retirees, remote workers), bonuses may outpace FiTs. For second homes or off-peak sites, FiT wins.

Integration with MaPrimeRénov’ and TVA at 10%

France supports solar through broader housing incentives like:

• MaPrimeRénov’: covers thermal upgrades, not PV directly — but can boost a bundled renovation
  
• TVA at 10%: reduced VAT on systems <3kW when installed by certified pros
  

These aren’t cashbacks, but indirect savings that improve affordability.

While not substitutes for FiTs, these layerable incentives help reduce upfront cost — especially when going solar as part of a whole-home efficiency plan.

When to Choose FiT vs Self-Consumption Pathway

The smarter path depends on your lifestyle, grid connection quality, and access to professional EPC support.

What EPCs Recommend Based on System Size

Many EPCs now base their advice on system size and usage profile:

• <3kW: Self-consumption route, bonuses stack better
  
• 3–9kW: Choose based on usage pattern
  
• 9–100kW: FiTs often superior, especially for agri/SME setups
  

Installers using software like SurgePV can model both scenarios in a click, showing customers their ROI under each pathway.

EPCs need to simulate both financial paths — not just default to FiTs — to guide smarter installs.

Conclusion

France’s feed-in tariffs remain one of the strongest pillars supporting solar adoption — especially for homeowners and SMEs looking for steady, grid-backed revenue. With long-term contracts, fixed per-kWh payments, and the ability to combine with other incentives, FiTs have made solar a low-risk, high-yield investment in France.

But time matters. As the country moves toward dynamic tariffs and grid-responsive models, early adopters who lock in existing rates will benefit the most. Whether you're an EPC advising clients, a homeowner calculating ROI, or a policy analyst tracking market evolution — now’s the moment to act.

Explore surplus potential, optimize system sizing, and choose the right compensation path with expert-backed tools.