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Photovoltaics: reduced VAT rate of 5.5% made official
The government has just approved a measure eagerly awaited by the entire solar industry: the application of a 5.5% VAT rate for small photovoltaic installations. The decree, published in the Journal Officiel on September 9, 2025, will come into force on October 1. This applies to installations of less than 9 kilowatt-peak (kWp), mainly intended for domestic use.
A text in line with the initial draft
The published document reproduces unchanged the version examined last week by the Conseil Supérieur de l'Energie (CSE). In the end, several proposed amendments were not included, including one that would have required the use of RGE (Reconnu garant de l'environnement) certified installers. The executive therefore opted for a more flexible approach, despite concerns about the quality and safety of installations.
Conditions deemed too restrictive
The response from professionals has been mixed. The Enerplan union had already warned during the CSE consultation that the criteria defined to benefit from reduced VAT were so demanding that they would exclude a large proportion of the equipment currently available on the market. The risk, according to the organization, is to severely limit the scope of this measure, initially designed to stimulate residential demand for solar energy.
A step forward, but an impact to be confirmed
For the public authorities, this reduction in VAT is an important lever for encouraging self-consumption and boosting the competitiveness of renewable energies. It is part of the energy transition strategy, and is also designed to support the French industrial sector.
Whether the market will follow remains to be seen. Industry players fear that excessive constraints will reduce the effectiveness of the scheme. Some are already calling for a rapid adjustment to widen access to the reduced rate and maximize its effect on households and the dynamics of residential solar energy.
