France's 2027 budget proposes retroactive cuts to solar energy purchase rates, sparking protests from investors and facing removal in key committees.
French government proposes retroactive changes
The French government has proposed retroactive changes to the purchase rates of electricity from certain photovoltaic installations, including agricultural sheds, within the 2027 budget. These changes are included in Article 82 of the 2027 finance bill and aim to cancel purchase contracts from 2006 to 2010 for installations over 250 kWc and reduce rates for S21 installations of 300 to 500 kWc after an audit by the CRE.Estimated savings and affected contracts
The government estimates the proposed changes would save approximately 120 million euros in 2027, citing a gap between a target rate of 92 euros per megawatt-hour (MWh) and an observed average rate of about 110 euros per MWh. More than 8,000 electricity purchase contracts, including those for agricultural buildings, would be affected, according to a collective comprising Enerplan, SER, and FNSEA, in a letter sent on October 16 to parliamentarians.Resistance from rooftop photovoltaics actors
The proposed changes have been met with resistance from actors in rooftop photovoltaics, who argue that the measure is a success, representing ten billion euros of investment that benefit the territories and the rural world. They accuse the state of wanting to "unilaterally reduce the income of these projects" while the investments have barely been made or the construction sites are still ongoing.Article 82 removed in two committees
Article 82 of the PLF 2027 was removed in two committees of the National Assembly. The economic affairs committee removed the article on October 19, and the finance committee followed on October 21. Deputy Julie Laernoes from Loire-Atlantique celebrated the adoption of her amendment n°II-CE172 aimed at removing the article from the 2027 finance bill.Deputy Fugit supports removal but questions some measures
Deputy Jean-Luc Fugit from Rhône, who is also the rapporteur of the PLF 2027 in the economic affairs committee, presented an amendment (n°II-CF2419) to remove article 82 in the finance committee on October 21. While he supports the removal of article 82, he believes that some measures in the article, such as the conditions for stopping or limiting production during periods of negative prices, could be interesting.Fate of article 82 to be decided in public session
The fate of article 82 remains to be decided in a public session at the National Assembly, starting on November 3, and then in the Senate. Deputy Julie Laernoes believes that with the double signal sent by the two committees, "the government has no choice left, it must give up this attack against renewable energies, respect its word, and honor the contracts it has signed with producers."