Summary
- The 5.5% reduced VAT rate applies to photovoltaic installations up to 9 kWc, provided that specific environmental and technical criteria are met, as from 1 October 2025.
- The 9 kWc threshold is assessed per individual installation, not cumulatively per household.
- Eligibility requires, among other conditions, the integration of an Energy Management System (EMS) enabling real-time monitoring and automated control of at least two electrical uses.
Article
In its BOFiP update of 10 June 2026, the French tax administration clarified the scope of the reduced VAT rate under Article 278-0 bis of the French Code général des impôts for the delivery and installation of photovoltaic systems. The reduced rate is limited to installations not exceeding 9 kWc and subject to strict environmental criteria, including thresholds for carbon footprint and the restriction of certain materials. The administration also confirmed that an integrated EMS is mandatory for eligibility and addressed the treatment of mixed offers, including battery systems. Transitional measures allow the continued application of the former 10% rate for projects where a quote was signed or a financing agreement was obtained before 1 January 2026.
Sources
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