France: VAT Rate on Electricity Production Equipment – Decree of 8 September 2025
A decree published on 8 September 2025 in the Official Journal sets out the conditions for applying the reduced 5.5% VAT rate to residential photovoltaic installations with a capacity of up to 9 kWc.
From 1 October 2025, the reduced 5.5% VAT rate will apply to the supply and installation of solar power equipment in residential buildings, provided the capacity does not exceed 9 kWc, in accordance with Article 278-0 bis of the French Tax Code.
The decree specifies the technical requirements that equipment must meet to qualify for the reduced rate, in line with Annex IV, Article 30-0 E of the Tax Code. These criteria include:
- Carbon footprint of modules below 530 kgCO2eq/kWc ;
- Silver content in cells below 14 mg/W ;
- Lead content in modules below 0.1% ;
- Cadmium content in modules below 0.01% ;
- Integration of an energy management system capable of collecting real-time production and consumption data and optimising on-site consumption.
Installers and suppliers are advised to ensure equipment compliance before installation to secure the correct application of the reduced VAT rate.
