Chinese
Location: Home >> Text
July2019
France exempts solar self-consumption from electricity taxTags£ºtax  solar  France solar 
The Ministry of the Economy Finance has eliminated an ambiguity in the tax  code: the French are not subject to a tax on the self-consumption of solar  energy – even in the case of rented or leased photovoltaic installations. This clarification provides valuable certainty for renewable energy developers who want to innovate their business models.

An official document circulated on July 9 by French custom authorities clarified that French consumers are exempted from the internal tax on the final consumption of electricity (TICFE).

Exemption from this tax, amounting to € 22.5 per MWh, largely determines the profitability of photovoltaic installations in private homes, business industrial sites in France. Richard Loyen, general delegate of French solar association Enerplan, believes that “when you produce solar electricity at € 70-80 MWh, the TICFE is decisive factor for the competitiveness of the project.”

Speaking with pv magazine, Loyen explained that the exemption was already included in the Customs Code, but it was not previously clear if the solar consumer was not also the project owner. The clarification now officially exempts the consumer from the TICFE, even when the solar installation is owned by a third party under a leasing or rental contract.

Sword of Damocles lifted

According to Enerplan, this clarity will enable the French solar sector to secure innovative business plans. “The clarification of the fiscal framework today allows professionals to propose new commercial offers in having certainty that their customers will not be liable for taxes on solar energy,” said Loyen. “Previously, when doing the due diligence for a self-consumption project, there was a concern when the facility belonged to a third party that the consumer would be indebted for the TICFE. Now this sword of Damocles has been lifted.”

Florian Ferjoux, environmental law specialist at Gossement Avocats, adds that operators in France can now safely offer a third-party investment contract in which they finance, install, rent the solar installation. “It’s going to break the brakes since the self-consumer will no longer have to provide capital for the facility itself,” he told pv magazine, confident that this state-approved third-party investment scheme could encourage projects that would not have been otherwise been realized.

However, Ferjoux also highlights the restrictions of the circular. To benefit from the exemption of the third-party investor, the solar installation must be marketed in the form of a leasing or through a rental contract.

Currently any resale of electricity downstream of the meter or collective self-consumption remains subject to the TICFE, a measure that can only be lifted by a legislative amendment. Enerplan is currently supporting the work of the Ministry of Economy Finance the Ministry of the Ecological Solidarity Transition surrounding these types of contracts, in the 2020 finance law which will be voted on at the end of the year.

European Repercussions

Enerplan’s position aligns with that of the European Directive of December 2018, which requires that third-party investment be allowed in all Member States to develop individual self-consumption.

“Exemption from the French tax on self-consumption is great news for consumers,” says Naomi Chevillard, policy advisor at SolarPower Europe, the European Union of the photovoltaic industry. “It is in line with the Clean Energy Package, which states that no tax should apply to self-consumption encourages new business models such as self-consumption, aggregation third-party investment.”

Chevillard told pv magazine that similar legislative measures are underway in Spain, Italy, Sweden Austria, hopes that other countries will eventually follow the French example.

About SolarStar

SolarStar has been concentrated in the photovoltaic field since 2008, supplying the latest news, business information, bbs, material downloading, and industry analysis for the photovoltaic professionals.

It is a photovoltaic business interactive platform with 200,000 members covering all of the related fields. So it is the most influential and most well-known network in the photovoltaic in China.

Contact SolarStar
Address:

Room 201, RECREO-CHN Global Media Plaza A1,Jianguo Road 15#, Chaoyang District, Beijing, China 100024

TEL:+8610-57479881

FAX:+8610-85758835

Cooperation
Mr.Zhou

TEL:+8610-85767886

Mob:+8613911210378

Email:zhouquan@bjxmail.com

Ms.Li

TEL:+8610-85758035

Mob:+8613810252521

Email:lijing@bjxmail.com

Archives

¡¤June 2012

¡¤July 2012