Reduced VAT Rate for Solar Panel Installations in France

Starting from 1 October 2025, a reduced VAT rate of 5.5% will apply to the supply and installation of photovoltaic solar panels in residential properties. The aim of this change is to promote access to renewable energy for private individuals.

Key Conditions for the Reduced VAT Rate on Solar Pannels in France

• The installed system must have a capacity of no more than 9 kilowatts-crête (kWc).
• The reduced rate applies to both the delivery of the equipment and the professional installation.
• The measure is set out by the  which defines the eligibility criteria for benefit of the reduced rate.

Additionally, to qualify under this reduced rate scheme, the equipment must meet cumulative criteria set out in the regulation:

• The modules must have a carbon-footprint (bilan carbone) of less than 530 kg CO₂ eq per kWc.
• The amount of silver used in the cells must be less than 14 mg per W.
• The lead content of the modules must be under 0.1%, and the cadmium content must be under 0.01%.
• The equipment must include an energy-management system allowing real-time monitoring of production and consumption and controlling consumption to maximise self-consumption on site.

Additionally, compliance with these criteria must be certified by an accredited body under EN ISO 17065 and EN ISO 17025 standards, with an attestation valid for a maximum of 12 months.

Practical Implications for Businesses and Installers in France

For suppliers, manufacturers and installers supporting clients with full or partial installation of solar equipment, the following practical points arise:

• Ensure that the modules proposed carry the required certificate attesting compliance with the carbon-footprint, silver, lead and cadmium thresholds.
• Confirm that the installation includes the necessary energy-management system specified in the regulation.
• Confirm the system’s capacity does not exceed the 9 kWc threshold.
• Ensure the VAT rate is applied correctly from 1 October 2025, and that documentation supports the eligibility of the reduced rate.

For multinational companies or cross-border suppliers of equipment into France, check that the module origin and manufacturing traceability meet the detailed requirements (site identification, manufacturing step details) included in the annex.

Learn more.