The solar panel market - France (2024)

1.2 The global market

The global solar panel market represented ** billion euros in **** and is expected to grow at a CAGR of **.**% to reach **.** billion euros in **** [***].

Global solar panel market World, ****-****, in billions of dollars Source: ****

Worldwide installed solar photovoltaic capacity was *** GW in **** and is expected to reach **** GW in ****. According to the International Energy Agency, around **,*** additional solar panels are installed worldwide every hour. Every year, this growth in installations is accompanied by substantial investment in the solar industry. In ****, these investments amounted to $*** billion, or **% more than in ****, according to Eiffel. The number of countries developing solar energy is on the rise, leading to a diversification of demand worldwide. Conversely, countries that previously drove demand, such as China and India, are facing a drop in the number of new installations and a contraction in demand. For example, the **% drop in investment recorded between **** and **** is largely attributable to the end of Chinese state support for the sector [***].

New investments in solar energy World, ****-****, in billions of $ Source: ****

Share of global solar photovoltaic energy production World, ****, in Source:EDF Worldwide, photovoltaic panel installations are the most numerous among renewable energies. Of the *** GW of renewable energy to be installed by ...

1.3 The domestic market

Overview of energy in France

In April ****, France's electricity mix was still largely dominated by nuclear power, which accounted for **% of total generating capacity (***).

French energy mix France, ****, in % of total Source: ****

Breakdown of electricity generation by source France, ****, in Source: ****

Since ****-****, the photovoltaic sector in France has seen strong growth. In ****, photovoltaic solar energy production will amount to ** TWh, up **% on ****. [***].

In France, the installed capacity of photovoltaic panels exploded between **** and **** - from*** MW to *,*** MW - then in **** (***).

Surface area of solar collectors installed France, ****-****, in thousands of square meters Source: EurostatEurostat After stagnating between **** and ****, sales in this sector are once again growing strongly, reaching a record *,*** million euros in **** . Photovoltaic industry sales France, ****-****, millions of euros Source: ****

1.4 Foreign trade

This section considers data for the ******** customs code entitled "Photovoltaic cells assembled into modules or made up into panels".

In ****, exports for this customs code totaled ***.*** million euros, up *.*% on ****.

Imports of solar panels France, ****-****, in millions of euros Source: ****

The main country to which France exports is Italy by far, with **.*% of total exports. Switzerland, in second place, accounts for just **.*%.

Export destination France, ****, in Source: ****

Imports of solar panels into France amounted to *,***.*** million euros in **** (***)

Import value France, ****-****, in millions of euros Source: ****

The main supplier of solar panels to France is China (***).

Main countries supplying solar panels France, ****, as % of total Source: ****

1.5 The impact of Covid-19: short-term slowdown, long-term windfall

Globally, the industry has not been spared by the health crisis. A survey of industry players carried out in April **** by the Solar Power Europe organization highlighted a decline in orders for **% of the companies questioned. Among the companies, **% were observing a decline in orders of up to **% and **% between ** and **%. [***]

However, this decline depends to a large extent on the impact of Covid-**, depending on the country and the public policies adopted to mitigate it. In France, during the containment period, most projects and construction sites were put on hold, creating a delay in future activities. [***]

Despite this, experts predict that the crisis will encourage the wider adoption of renewable energies in the long term. Renewable energies covered ** to **% of energy consumption, and even **% at their peak. [***]

2.1 Demand segments

Demand for photovoltaic panels can be segmented into five categories, differentiated by the production capacities each requires.

Domestic installations, the segment that concentrates all demand with a capacity of less than * kW. Medium-sized rooftops, with demand ranging from * to *** kW and installed on roof surfaces of less than *,*** m*. Large roofs, with a capacity of between *** and *** kW and roof areas of between *,*** and *,*** m*. Very large roofs, with a capacity of between *** kW and * MW, for roof areas of over *,*** m*.

Offers differ according to these different demand segments, since a photovoltaic solar power plant project has nothing in common with a small domestic installation. The former seek to produce electricity for injection into the grid - they are energy industrialists - while private individuals install solar panels to meet their own needs and for self-consumption. Intermediary projects range from making a building energy-neutral by directly supplying it with renewable energy, to installing solar power relays in residential complexes.the intermediate projects are varied, from making a building energy-neutral by directly supplying it with renewable energy, to installing electricity supply relays in residential complexes, or finding a source of energy for equipment in a workshop. [***]

2.2 Uneven demand across France, dependent on climatic conditions

The use of solar panels is of course highly dependent on climatic conditions, and as such, demand is very uneven across France. Indeed, there is a marked difference in photovoltaic potential between the different regions of France, with maximum potential in the south and especially the southeast[***].

Source: ****

As a result, the photovoltaic installed base, and therefore demand, is unevenly distributed across France, with a very high concentration in the Nouvelle-Aquitaine region,Occitanie, Provence Alpes Côte d'Azur and Auvergne Rhône Alpes. These four regions alone account for **% of France's solar photovoltaic capacity.

Solar photovoltaic capacity by region France, ****, production capacity MW Source: ****

Source: ****

In December ****, the total installed solar capacity by region was **,*** MW.

2.3 The French and solar energy

Overall, the French are very confident in renewable energies. For example, **% have confidence in solar combisystems, and **% in heat pumps. As for photovoltaic panels, the confidence index is **%; while this is still high, it is nevertheless one of the lowest figures among the various renewable energies. [***]

French confidence in various renewable energies France, ****, in Source: ****

Nonetheless, the rate at which individuals are equipped with solar panels is still very low in France: in ****, only *% of the population was equipped, and only **% was considering it. [***]

Equipment of private individuals with solar panels France, ****, in % Source: ****

Cost may be holding back demand

The installation of equipment using renewable energies is perceived as a very heavy cost, which is holding back demand for these new technologies, and therefore among others for solar panels. When it comes to renovation work, for example, only **% of French people say they will choose renewable energy equipment, while **% say they will only do so if there is no extra cost (***). Renewable energy equipment is thus perceived as very expensive, which slows down its progression. [***]

Propensity to choose renewable energy equipment during renovation work France, ****, in % Source: ****

Nevertheless, some individuals are prepared to make a substantial investment in solar panels. ...

2.4 Focus on agrivoltaics

Agrivoltaics is the practice of combining solar energy production and agriculture on the same plot of land. This is usually done by installing solar panels on top of existing crops, or by integrating crops between the solar panels. The aim of agrivoltaics is to maximize the use of agricultural land by combining two complementary activities, while reducing environmental impacts. This method also generates an additional source of income for farmers while producing renewable energy. [***]

Thanks to their orientation and control, these devices can be used for a variety of functions, such as providing shade in the event of excessive heat, reducing water evaporation, maintaining heat during the winter or protecting crops from hail.

With agrivoltaics, it is necessary to limit the energy produced by the solar panels so as not to interfere with the needs of the crops. Solar panels are therefore installed less densely, and their orientation is adjusted according to the plant's needs. As a result, energy production can be reduced by ** to **% compared with a traditional ground-mounted solar installation. According to Sun'Agri, the average installation cost of an agrivoltaic plant is around ***,*** euros per hectare, and its lifespan is ** years, allowing for amortization over a period of ** ...

3.1 Structure of the French photovoltaic industry

Photovoltaic companies in France

In ****, France will have **,*** jobs in the photovoltaic industry.

The number of jobs fell steadily from **** to ****, then rose again. The year **** will see the number of jobs soar: this is mainly due to the massive investments made by the state and private investors in the sector in recent years.

Full-time equivalent jobs in the photovoltaic industry France, ****-****. in number of jobs Source: ****

French photovoltaic installations

In terms of number of installations, the French photovoltaic installed base is largely dominated by large-scale facilities (***).

France intends to accelerate the deployment of photovoltaic installations drastically in the coming years, and increase the number of new installations to * GW per year between **** and **** [***].

French photovoltaic installations by farm size France, ****, in Source: ****

New installations in **** France, ****, in Source: ****

3.2 The value chain

Manufacturing

There are several different types of solar panel manufacturer:

Specialized manufacturers: for example, Sunpower, a pioneering company considered to be the most advanced in the solar panel market. Another example is China's JA Solar, established in **** and a major player on the market. International electronics players: LG is particularly dynamic in the solar panel sector. European manufacturers: the German company QCells is considered one of Europe's leading manufacturers, already omnipresent in Germany and France. French manufacturers include Systovi and Photowatt

Source: ****

Distribution

In France, photovoltaic and thermal solar panels are mainly distributed via four channels:

Direct sales: the player sells its products directly to the customer, usually close to production or storage sites. Wholesalers: the company works with one or more distributors and/or wholesalers to distribute its products to customers. Installers: the player works with one or more installer networks, which can sometimes be exclusive and work only with one manufacturer. DIY superstores: the player distributes its products through DIY superstores, which may have their own network of installers.

3.3 China, a global super-competitor

China is the hegemonic leader of the global photovoltaic market. In ****, China alone accounted for **% of global photovoltaic production and **% of growth in renewable energies. By ****, its installed solar capacity will be four times greater than that of the world's second largest player, the United States. The global Chinese market continues to grow, from ** GW in **** to **.* GW in **** (***) in ****. [***]

China's hegemony in solar power continued to grow. Its production volumes of polysilicon, silicon wafers, solar cells and modules, the materials used to manufacture photovoltaic panels, grew by **%, **%, **% and **% respectively [***].

It's also worth noting that of the world's top ** solar panel manufacturers, * are Chinese (***). The main players are JinkoSolar, Trina Solar and Canadian Solar[***].

4.1 Different technologies

Photovoltaic solar energy

There are a number of different photovoltaic technologies at different stages of development:

Crystalline silicon (***): Solar panel cells are made of silicon, extracted from sand or quartz. Silicon can be monocrystalline or multicrystalline, depending on the production method; monocrystalline silicon is more expensive to produce but offers better quality and higher yields.

Thin-film (***). Production costs are lower for this type of panel, but yields are also lower.

Organic cells (***): Cells are composed of organic molecules, and can be molecular, polymer or hybrid organic. Organic solar cell technology is still at the development stage, but promises much lower production costs than the technologies currently in use.

Concentrator cells (***): Concentrating solar cells use optical lenses to concentrate solar radiation onto small, high-performance cells. They are highly efficient, but must always be positioned directly in front of the sun.

Hybrid perovskite cells: This technology is still at the laboratory development stage, but yields look promising. Research is now focusing on stabilizing yields and making cells resistant to humidity.

These different photovoltaic technologies are not all at the same stage of development, nor do they offer the same yields:

Source: ****

Solar thermal energy

Solar thermal energy harnesses the sun's rays to convert ...

4.2 The cost of solar panels

Photovoltaic solar power

In ****, the total cost of photovoltaic solar panel installations will vary according to many criteria, but here is an indicative price range:

Installation of *kWp solar panels for self-consumption: the total price can range from €*,*** to €**,*** incl. VAT

Most of this expense is due to the price of the solar panels, which account for **% of the total, while the inverter only accounts for **%, installation for **% and **% for energy management and other costs[***].

Breakdown of the total cost of a photovoltaic panel installation France, ****, in Source: ****

Nevertheless, the total cost of installation has fallen sharply in recent years. In fact, the average cost of a * kW installation has fallen from €*.* excl. tax/W installed to €*.* excl. tax/W installed, a price reduction of -**% in the space of just * years. In particular, it is the fall in the price of equipment that has driven down the total cost of installation: the price of equipment has fallen by -**% over the same period.

Solar thermal systems

Prices vary widely depending on the type of solar thermal equipment:

A flat-plate solar collector costs between €*** and €*** on average, for the material alone. An evacuated tubular solar collector is often more expensive than ...

4.3 Trends: hybrid solar panels (photovoltaic and thermal) and digital technology

Hybrid solar panels

A few years ago, the French company Dual Sun launched the Spring hybrid solar panel. This panel's hybrid technology enables both electricity and heat to be produced from the same solar panel. The thermal part of this solar panel incorporates *** channels to allow water to circulate through the equipment. The photovoltaic cells are monocrystalline[***].

Numerous start-ups are also breaking into this sector, despite the high barriers to entry caused by the need for high R&D expenditure. Here, for example, are some of the most promising start-ups identified by EDF in its EDF Pulse **** competition:

BeOn Energy: this start-up wants to reduce the price and complexity of installing solar panels by offering a solar kit that can be used as easily as any other electrical appliance, with an inverter that can be plugged into any electrical outlet. SAUREA: this startup offers a motor that runs solely on solar energy captured by photovoltaic panels. It can be used for ventilation or water pumping.

In its **** EDF Pulse competition, the company selected a number of particularly innovative start-ups, including Otonohm, which offers a new generation of lithium batteries.

Source: ****

Digital transformation, smart-grid and photovoltaics

More and more technologies are being ...

5.1 Feed-in tariffs for photovoltaic electricity

To encourage the installation of solar panels, the French government has set up a system of compulsory purchase of photovoltaic electricity (***).

In addition, the income generated by the resale of photovoltaic energy is not taxed. Photovoltaic feed-in tariffs are revised quarterly by the French energy regulator, the Commission de Régulation de l'Energie. However, once the tariffs have been awarded, they remain unchanged for the **-year duration of the contract, despite this quarterly revision.

Feed-in tariff s for photovoltaic electricity differ according to several criteria:

Total resale or resale of surplus Solar power plant capacity Type of installation: building-integrated, simplified building-integrated or non-integrated system

Total saletariffs from May*, **** to July **, **** (***).

Source: ****

The feed-in tariff for photovoltaic electricity has been falling steadily since ****, from ** c€/kWh in ****, for a a building-integrated installation with a capacity of less than * kWC, to **.** c€/kWh in early ****, before rising to **.** c€/kWh in **** with the war in Ukraine and the energy crisis, then falling back to **.** c€/kWh in April ****.

Evolution of photovoltaic feed-in tariffs France, ****-****, in c€/kWh Source: ****

5.2 Taxation and state aid

The Energy Transition Tax Credit (***)

The CITE is a French government subsidy for energy-efficient insulation, and is therefore applicable to thermal, hybrid and aerovoltaic solar panels, among others. It allows a tax deduction of **% on the equipment.

Reduced VAT for solar installations

The installation of photovoltaic panels is subject to a reduced VAT rate of **%, as part of renovation work (***). This aid is only available for installations of less than * kWp.

Self-consumption bonus

Self-consumption means consuming the energy produced by your own solar system at home. The amounts for each power band have already been shown in the above table of photovoltaic feed-in tariffs.

Zero interest eco-loan

This is a bank loan enabling you to finance your energy transition at zero interest. The loan is capped at €**,*** and is repayable over ** years. It applies to thermal, hybrid or aerovoltaic solar panels.

EDF Obligation d'achat

It's worth noting that installing photovoltaic panels not only allows you to produce your own electricity, but also to sell surplus production to EDF. In fact, EDF is obliged to buy back the surplus production of photovoltaic panels from private individuals who request it. Feed-in tariffs vary according to the power of the installation, but are fixed ...

5.3 Focus on French government aid for solar panel installation in the agricultural sector

There's plenty of government support available for farmers wishing to install photovoltaic panels on their land. According to Liight, electricity costs account for **-**% of a farmer's budget, so reducing these costs is no mean feat. These include

Self-consumption with sale of surplus: Self-consumption is a good option for gaining energy autonomy for energy-hungry farms. It reduces electricity bills and generates additional income by selling surplus electricity. For photovoltaic installations with a capacity of *** kWp or less, the French government has set up the EDF Obligation d'Achat (***) scheme, which obliges EDF to buy back surplus electricity at a fixed rate set by the government. Tariffs vary according to the power of the installation, ranging from €*.*/kWh for power less than or equal to * kWp to €*.****/kWh for power less than or equal to *** kWp over **** kWh/kWp. This subsidy allows you to benefit from the current tariff for ** years.

Total sale: In the past, it was more profitable to sell all the solar power generated. However, with the drop in feed-in tariffs, this option is only advantageous if your electricity needs are low or rare. If you decide to sell your solar power production, the EDF OA also applies for ** years, ...

6.1 Segmentation

• Solarwatt France
• SunPower
• JinkoSolar
• Green Yellow
• Voltec Solar
• Voltalia
• CETIH
• Holosis
• France Solar
• Créawatt
• Reden Solar
• VSB Energie Nouvelles France
• TSE Energy
• Engie Green (Engie groupe)
• Dracula Technologies
• LONGi
• Mylight Systems
• MyLight150
• We Recycle Solar
• Photosol (Rubis groupe)
• Giudicelli Groupe Voltaïca
• Verlaine Groupe
• Dualsun
• Exasun
• Energetica
• Heckert Solar
• Systovi
• Corsica Sole
• See You Sun
• AdiWatt Caillau
• First Solar
• Recom-Sillia
• Energies de Loire
• Solewa
• Carbon Solar
• Entech
• DAS Solar