Paris, France, December 3, 2025 — The French solar energy sector demonstrated strong resilience and growth momentum in the third quarter of 2025, adding 1,507 megawatts (MW) of new grid-connected photovoltaic (PV) capacity. Despite significant policy changes and occasional volatility during France’s energy transition, the sector has maintained steady growth, bringing the cumulative new capacity added in the first nine months of the year to 4.2 gigawatts (GW).

France’s installed solar power capacity keeps growing, according to quarterly data provided by French grid operator Enedis. The new capacity installed in the third quarter secures the robust and continuous growth of French solar power generation by 2025, following the addition of 1,407 MW in the first quarter and 1,358 MW in the second. This expansion is increasingly reflected in technological innovation, with 82 MW of the additional capacity in 2025 to be equipped with energy storage devices. This represents a major advancement for France in terms of enhancing grid stability and the utilization rate of renewable energy generation.

Numerous strategic policy adjustments have contributed to this expansion. The French government upped the installed capacity cap for “collective self-use” projects from 3 MW to 5 MW earlier this year, encouraging larger-scale commercial and community solar systems and facilitating local energy sharing. Additionally, even though it is harsher, a revised VAT reduction plan that will go into force in October 2025 provides a clear long-term signal. This plan provides that the VAT rate can be reduced to 5.5% for home systems under 9 kW that meet strict environmental standards, including a demanding carbon footprint level, effectively promoting low-carbon manufacture and high-quality products.

Navigating a Sea Change in Market Policy

This sustained installation activity occurs even as the market adapts to a radical overhaul of its core support mechanisms. In a decisive shift from fixed subsidies to market-driven pricing, France’s Energy Regulatory Commission (CRE) has enacted major reforms to its feed-in tariff (FIT) system. The most impactful change is the removal of FIT guarantees for projects over 100 kW, which must now secure their revenues through competitive tenders or Power Purchase Agreements (PPAs).

There has been a lot of discussion in the business over the policy change. Although the goal is to reduce grid congestion and integrate renewable energy into the market, trade associations have expressed grave concerns. The tariff reductions for mid-sized systems (36–100 kW) might lower investment returns below 5%, endangering the survival of numerous installers, according to a warning from the French Solar Association (Enerplan). The French Renewable Energy Union (SER) issued a grim warning, predicting that the policy change could result in up to 3,000 job losses by 2025.

This regulatory uncertainty was further amplified in June when the French National Assembly passed an amendment calling for a temporary suspension of new wind and solar projects pending an independent study on the optimal energy mix—a move heavily criticized by the renewable sector as a threat to energy security and jobs. Although this has not halted ongoing projects, it injects a note of political risk into the long-term planning landscape.

A European Context: Solar’s Rising Prominence

France’s solar journey reflects a broader continental trend. Thanks to abundant sunshine and the expanding installed capacity in countries like France, solar power made history in June 2025, surpassing nuclear power to become the EU’s largest single source of electricity that month. Furthermore, EU data shows that solar power generation surged from 40.9 terawatt-hours to 55 terawatt-hours in the first quarter of 2025, highlighting the technology’s growing importance in Europe’s power mix.

Balancing Acts and Future Trajectories

The French solar market now operates in a dual reality: robust installation figures on one hand, and a policy environment moving decisively—and sometimes contentiously—away from direct support on the other. The future pace of growth is increasingly tied to the sector’s ability to innovate commercially and technically.

Success will depend on several factors: the effective rollout of storage solutions to manage intermittency, the adoption of high-efficiency technologies like bifacial panels to succeed in competitive auctions, and the industry’s capacity to meet new quality standards like the carbon footprint limits that are becoming a gateway for market access. The next major turning point for the industry’s development will be the final version of France’s National Energy and Climate Plan 2025-2035 (PPE3), which is expected to set a target of 65 to 90 gigawatts of solar installed capacity by 2035.

The 1.5 gigawatts of new grid-connected capacity added in the third quarter demonstrate the basic strength and maturity of France’s solar energy sector. However, attaining its 2030 targets demands a careful balance between market discipline, continuing technology improvements, and a robust regulatory framework that can reconcile energy ambitions with grid and economic realities.