The French government has outlined draft conditions for applying a reduced 5.5% value-added tax (VAT) to residential solar installations under 9 kW, effective from October 1.

While the industry awaits publication of the official decree, the draft proposal will be reviewed by the Higher Energy Council on September 4.

Eligibility for the lower VAT rate will depend on panel manufacturing criteria rather than usage. To qualify, solar modules must meet all of the following requirements:

· Carbon footprint below 530 kgCO₂eq/kW

· Silver content under 14 mg/W

· Lead content below 0.1%

· Cadmium content below 0.01%

These thresholds are intended to encourage the adoption of panels with reduced critical metal use and lower environmental impact.

The draft decree also stipulates independent verification by accredited certification bodies. Certification must demonstrate industrial traceability, including identification of production sites for modules, cells, and wafers, documentation of the most recent audit (within 12 months), and compliance results for each criterion. Certifications will remain valid for one year.