Under the Finance Act that came into force in 2005, private individuals subject to income tax are eligible for partial reimbursement against PV equipment costs (installation costs are not taken into consideration).

Initially the credit was set at 40 %. This has increased to 50 % for 2006, capped at 4 000 EUR per person (i.e. 8 000 EUR in the case of a couple). Nominally a tax credit, the reimbursement actually applies even if the total amount of tax due is less than 50 % of the capital investment. The fiscal measure, which is scheduled to continue until 2009, replaced the residential grant programme previously administered by ADEME.

Public and commercial PV projects are still eligible for grants against part of the installed costs, though the subsidy amount is assessed on a case-by-case basis as part of calls for projects. For new buildings, ADEME is insisting on a quality architectural integration approach coupled to a strong energy management policy.

There have also been some recent changes to the feed-in tariffs on mainland France. These were initially set at 0,14 EUR per kWh but as of 31 March these have increased to 0,225 EUR per kWh for private residential systems and 0,30 EUR per kWh for systems installed on industrial or public buildings. The rate applied for the overseas departments (0,28 EUR per kWh) remains unchanged for the time being.

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