Installing Solar Panels– Is it Worth it?
15th May 2023
As electricity prices soar, some factors to consider over the installation of solar panels on your French property.
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Whilst the French government have done much to protect consumers from the impact of the global energy crisis, prices have nonetheless increased by nearly 20% over the past two years.
In the context of rising prices, accompanied by risks concerning the supply of electricity, home energy independence has become a central issue.
According to EDF Énergies Renouvelables, the cost of a basic installation of 8 photovoltaic solar panels is between €8,000 and €15,000, which, in ideal conditions, would produce around 3,300 kWh per annum, representing a saving of around €680 per year at current prices. The savings will depend on the size, orientation and location of the installation.
In addition, there are the costs of connecting to the supply, which may be circa €1,000. There are also annual running costs of around €80, and it is likely your annual house insurance premium will increase. The solar panel inverter will also need changing around every 10 years, at a cost of circa €1,500.
As a result, EDF estimate that it would take between 12-22 years to recover the initial investment. Solar power is therefore an investment for the long-term.
To encourage householders to take the plunge there is financial support available through buy-back schemes and grants.
Buy-Back Schemes
As occurs in many other countries, France has a scheme in place enabling owners with photovoltaic solar panels to sell their electricity back into the national grid.
Over the past 5 years, buy-back prices have reduced, but with the increase in global energy prices they have now been revised upwards. The buy-back price depends on whether you are selling only the surplus electricity you generate or all of it.
i. Sale of Surplus Electricity
For the sale of surplus electricity, the price has been increased from €0.10 per kWh to €0.13,13. The government have now decided that prices will now be indexed to inflation and revised every quarter. A further quarterly review is now due.
ii. Sale of All Electricity
For new installations the price has risen from €0.22,42 per kWh to €0.23,49, up to 3kWc, with the tariff digressive beyond this power rating. To qualify for the tariff, the installation must be carried out by a qualified installer, 'Reconnu Garant de l'Environnement' (RGE). The works must then be approved by the Consuel (Comité National pour la Securité des Usagers de l’Electricité).
A major recent study carried out by the consumer body 'Que Choisir' found that it was more economic to sell ALL the electricity generated. The main reasons for reaching that conclusion were:
Most of the electricity generated is in the summer, when households use less;
Most electricity is generated during the day, whilst most electricity consumption is in the morning and at night, thereby requiring the purchase and installation of expensive batteries to stock the surplus;
The financial assistance that is available is also greater for the sale of all electricity generated.
Grants
i. Prime à l’autoconsommation photovoltaïque
This is a grant (also called Prime à l'investissement) for the auto-consumption of power from solar panels paid for the first 5 years and varies from €90 to €430 per kWp. The lower the power, the higher the grant. For an installation less or equal to 3kWp it is €430 per kWp. The amount is recalculated every quarter.
The aim of the grant is to encourage householders who cannot install high capacity panels due to a lack of space/financing to at least install smaller capacity ones.
ii. MaPrimeRénov’
The MaPrimeRénov’ scheme, launched in 2021 aims to encourage home renovations which reduce energy consumption. The grant applies to homes constructed at least 15 years ago. Installing thermal or hybrid solar panels (which work from heat and light) is included in the list of works eligible for the grant. Photovoltaic solar panels are not included, and the economics of thermal solar panels (which do not produce electricity) are far more questionable. Grants are awarded according to household income and to energy efficiency gained. A grant simulator is available at Simul’aides.
iii. 'Prime Énergie' and 'CEE'
The 'Prime Énergie' is another grant for installing thermal or hybrid solar panels, which can be awarded alongside MaPrimeRénov’. Householders who have renovation works carried out receive energy economy certificates ( Certificats d’Économie d’Énergie' - CEE) from the government, which they can use to pay for energy.
The amount of the 'Prime Énergie' depends on the work done, the location, the characteristics of the dwelling, and the householder's income. A simulation tool is available at Primesenergie.
Other Support
i. Reduced VAT
The standard rate of 20% is reduced to 10% for photovoltaic solar panels and 5.5% for thermal solar panels, although only homes with at least 3 kWp of power are eligible.
ii. Prêt à taux zéro/Éco-PTZ
Interest free loans are available to help finance energy-efficiency works to a maximum of €15,000 for installing thermal or hybrid (not photovoltaic) solar panels, and up to €50,000 for global renovation. This would therefore cover a basic installation producing around 3,000 kWh per year.
Installation
There are a large number of scams around concerning the installation of solar panels, so a health warning is needed about the selection of a contractor. A full vetting process of the contractor is essential, and consider taking advice from an independent professional.
The aesthetics of the project may well also be a consideration, and although there are now solar roof tiles available, they are substantially more expensive than standard panels.
The project will also require planning consent.
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