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France: New adjustment in PV rates

According to the ministry of ecology and energy, photovoltaic projects submitted to date on the French territory represent a capacity of 3000 MW.

So France is ahead of targets set by the Grenelle Environment: 1100 MW installed by end of 2012 and 5400 MW in 2020.

In just two years, the cumulative installed photovoltaic power installed in France has increased by 10, dropping from 81 MW in late 2008 to approximately 850 MW by the end of 2010 (projected).

These figures show that the boot of the French photovoltaic is now completed. And as the cost of materials follows a steady decline and structural, the Government has decided to adapt the system of support prices by buying in the new phase of development.

Thus, for professional projects and large facilities, rates are generally adjusted on 1 September 2010. Also according to the government, “the adjustment avoids windfall and speculative result of the decreased cost of photovoltaic equipment, which represents about half the cost of projects.”

In order not to destabilize the market and in particular sustain employment in this sector, the tariffs applicable to domestic installations with a capacity of less than 3 kWp (approximately 30 m2 of panels) will remain unchanged at 58 c € / kWh.

For other projects, “the adjustment corresponds to a decrease of 12%.

The tariff revision will come into force on 1 September, after publication in the Gazette Official of an Order sent on Aug 23 to advise the Commission of Energy Regulation and the Board of Energy.

Starting from a buyback lower than in France, Germany and Spain have also decided to lower their rates by more than 15%.

Important note: Every project has already been the subject of a complete connection with the transmission system will benefit from the fee schedule of January 12, 2010. The former feed-in tariff will be maintained for particular projects on agricultural building, currently under consideration in the prefectures under the decree of March 16, 2010, if they can not obtain the required certificate granting them benefit of the decree of July 10, 2006.

The Ministries of Finance and ecology together indicate that “the price evolution is the first step in a necessary adaptation of the regulatory system of feed-in tariffs, which must become more responsive to the development of the sector and better articulated with the growth target of 500 MW per year stipulated in the Grenelle Environment. This development, which should afford the industry outlook solid and sustainable development until 2020, will be prepared to fall in conjunction with all the stakeholders.



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