EC okays France's EUR-5.7bn aid scheme for building-mounted solar

The European Commission (EC) said on Friday that it has approved France’s EUR-5.7-billion (USD 6.71bn) aid scheme to support the installation of small-scale building-mounted solar arrays.

The budgeted amount, which is provisional, will serve to finance feed-in-tariffs (FITs) awarded to installations with a capacity of up to 500 kW. The aid will be extended without a tender process since the capacity of supported projects is below 1 MW, the EC explained.

The EC said it found the aid to be "proportionate and limited to the minimum necessary", and in line with EU state aid rules, adding that its positive effects "outweigh any possible negative effects in terms of distortions to competition".

The aid scheme will run until 2026, while the FITs will be awarded for a period of 20 years. The level of individual FITs will depend on the size of the installation and the business model. In other words, assessments will be made depending on whether the arrays export all the power into the grid or only a part while the rest is consumed.

With this scheme, France expects to benefit from additional 3,700 MW of solar power capacity, the EU executive added.

The Brussels’ latest nod comes exactly a month after the Commission approved France’s request to distribute EUR 30.5 billion in state aid through tenders for onshore solar, onshore wind and hydropower plants.

(EUR 1.0 = USD 1.176)

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