The French Energy Regulatory Commission (CRE) has proposed reforms to the support framework for large-scale photovoltaic (PV) installations above 100 kWp, aiming to accelerate the development of solar-plus-storage projects while improving the efficiency of public spending and better aligning renewable generation with electricity system needs. The proposals are currently under review by the Lévy–Tuot task force.
The reform comes amid a sharp rise in negative electricity prices and increasing “solar cannibalization,” where the growing share of PV reduces its market value. In 2025, France recorded 513 hours of negative prices, up from 352 hours in 2024. According to grid operator RTE, this resulted in the loss of around 1.6 TWh of solar generation—nearly 20% of output from installations receiving feed-in tariffs. Meanwhile, non-dispatchable PV systems captured 32% less market value compared to production limited to non-negative price periods.
These losses are largely compensated by the government, adding pressure on public energy charges (CSPE), especially as nearly 10 GW of additional solar capacity is expected by 2029.
In response, CRE identifies flexibility—particularly battery storage—as a key solution. Storage can smooth generation, reduce price volatility, and shift output to periods of higher demand, thereby increasing the value of solar electricity. By the end of 2025, France had installed around 1.5 GW of battery capacity. At the same time, demand-side measures such as daytime off-peak tariffs are expected to improve the balance between supply and consumption.
Against this backdrop, the regulator is proposing a pilot support scheme for hybrid “PV + storage” projects, with the dual objective of limiting public exposure to declining solar revenues while providing stronger economic incentives for producers.
Key proposed changes include a revision of the reference price methodology. Instead of being weighted based on PV production profiles, the reference price would be calculated as a simple average of market prices. This would shift part of the price risk to producers and encourage optimization of output, particularly through storage.
For periods of negative prices, CRE proposes that compensation should depend on whether hybrid systems inject electricity into the grid, rather than requiring PV installations to stop generating. This would give operators greater flexibility to manage battery charging—either using on-site solar generation or drawing from the grid—based on market conditions such as the depth of negative prices and network tariffs (TURPE).
Additional incentives are also proposed for shifting photovoltaic output away from negative pricing periods. This measure aims to reduce curtailment and maximize the share of low-carbon electricity delivered when it is most valuable to the system.
The reform will initially be tested through existing tenders for large-scale solar projects, where standalone and hybrid installations will compete under the new framework. Adjustments to price caps are expected to remain limited—around €10/MWh—in order to contain budgetary risk.
As solar penetration continues to increase, the proposed changes reflect a broader policy shift from supporting capacity growth toward enhancing system value, with storage playing a central role in improving the integration and economics of renewable energy.
