The 2027 Finance Bill, introduced on October 1, includes changes to how the government supports renewable energy, particularly solar power installations. The bill plans to revise certain solar energy contracts, called S21 contracts, and extend a mechanism that allows installations to shut down during periods when energy prices drop below zero. These adjustments aim to save about 120 million euros on public support for renewable energy while ensuring the financial viability of affected producers. Public funding for renewable energy is expected to remain stable at 9.5 billion euros in 2027, compared to 2026. However, the Energy Regulation Commission (CRE) had previously estimated that the state might need to cover up to 10.67 billion euros in energy service charges in 2027. The government is responding to these projections by adjusting support mechanisms for solar power, especially for larger installations. Article 82 of the bill focuses on revising the purchase prices for S21 contracts, which apply to solar installations on buildings, sheds, and canopies with capacities between 300 and 500 kilowatts. These revisions target installations where the return on investment exceeds a level deemed reasonable. The support tariffs for solar power have declined significantly, from 131.2 euros per megawatt-hour in 2023 to 95 euros in March 2025, and further to 88 euros in summer 2025. Since September 2025, smaller installations under 100 kilowatts have been supported through competitive tenders, with the average price set at 88.38 euros per megawatt-hour. The new measures aim to address the over-recovery of costs by the state from larger solar installations, while preserving the economic viability of affected producers through a safeguard clause. The government also plans to extend the shutdown mechanism—allowing installations to reduce or stop production during periods of negative prices—to all installations over 100 kilowatts. These negative price episodes have become more frequent, with over 800 hours in 2026 alone, compared to just 102 hours annually before 2022. The shutdown mechanism, initially introduced for installations over 10 megawatts in 2025, was gradually expanded to installations as small as 1 megawatt by the 2026 Finance Bill. The 2027 bill proposes to bring this down further to 100 kilowatts, covering solar, onshore, and offshore wind energy. Hydropower and cogeneration are excluded due to technical challenges related to shutting them down. The bill also reduces compensation for producers whose installations are shut down at the request of an obligated buyer, with a maximum decrease of 10% during negative price hours. The exact reduction level will be determined by a government decree. Finally, the bill seeks to reduce the state’s financial risk by increasing the use of futures markets to cover electricity volumes that receive compensation. This would help stabilize the budget by reducing dependence on volatile short-term energy prices. EDF Obligation d'achat (EDF OA) would be responsible for managing this coverage, following guidelines from the CRE. The state would fully cover the costs, and the outcomes of these operations would be factored into the calculation of energy charges. The government also plans to allow EDF OA to trade certain futures products not currently available on organized markets, to better manage energy volumes with specific timeframes or delivery conditions.