France will implement a reduced value-added tax (VAT) rate of 5.5% on residential solar installations with a capacity of up to 9 kW starting October 1, 2025. While the official decree is still pending publication, the draft conditions are set to be reviewed soon. To qualify for this tax reduction, solar panels must meet specific manufacturing criteria focused on minimizing carbon and critical metal content, thereby promoting environmentally friendly practices within the solar industry.
The living intent of this measure is to encourage lower carbon emissions in solar panel production. To achieve the 5.5% VAT, the panels must comply with several criteria: a carbon footprint under 530 kgCO₂eq/kW, silver content of less than 14 mg/W, lead content below 0.1%, and cadmium content under 0.01%. These thresholds aim to steer the market towards using panels with lesser critical metal content while reducing overall environmental impact.
Moreover, the draft decree stipulates that the certification process must be conducted by accredited bodies. These certifications need to include verification of the production sites for solar modules, cells, and wafers, detailed records of audits conducted in the last year, and compliance results for each of the environmental criteria. The validity of these certifications will last for one year, ensuring continuous adherence to the established standards.