France exempts solar self-consumption from electricity tax
The Ministry of the Economy and Finance has eliminated an ambiguity in the tax code: the French are not subject to a tax on the self-consumption of solar energy – even in the case of rented or leased photovoltaic installations. This clarification provides valuable certainty for renewable energy developers who want to innovate their business models.
Currently any resale of electricity downstream of the meter or collective self-consumption remains subject to the TICFE, a measure that can only be lifted by a legislative amendment. Enerplan is currently supporting the work of the Ministry of Economy and Finance and the Ministry of the Ecological and Solidarity Transition surrounding these types of contracts, in the 2020 finance law which will be voted on at the end of the year.
European Repercussions
Enerplan‘s position aligns with that of the European Directive of December 2018, which requires that third-party investment be allowed in all Member States to develop individual self-consumption.
“Exemption from the French tax on self-consumption is great news for consumers,” says Naomi Chevillard, policy advisor at SolarPower Europe, the European Union of the photovoltaic industry. “It is in line with the Clean Energy Package, which states that no tax should apply to self-consumption and encourages new business models such as self-consumption, aggregation and third-party investment.”
Chevillard told pv magazine that similar legislative measures are underway in Spain, Italy, Sweden and Austria, and hopes that other countries will eventually follow the French example.
Currently any resale of electricity downstream of the meter or collective self-consumption remains subject to the TICFE, a measure that can only be lifted by a legislative amendment. Enerplan is currently supporting the work of the Ministry of Economy and Finance and the Ministry of the Ecological and Solidarity Transition surrounding these types of contracts, in the 2020 finance law which will be voted on at the end of the year.
European Repercussions
Enerplan’s position aligns with that of the European Directive of December 2018, which requires that third-party investment be allowed in all Member States to develop individual self-consumption.
“Exemption from the French tax on self-consumption is great news for consumers,” says Naomi Chevillard, policy advisor at SolarPower Europe, the European Union of the photovoltaic industry. “It is in line with the Clean Energy Package, which states that no tax should apply to self-consumption and encourages new business models such as self-consumption, aggregation and third-party investment.”Chevillard told pv magazine that similar legislative measures are underway in Spain, Italy, Sweden and Austria, and hopes that other countries will eventually follow the French example.
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