5.5% VAT on solar panels in 2026: conditions, calculation and savings

The principle: reduced VAT for energy renovation

In France, the VAT rate applicable to construction work is 20% by default (except for energy renovation work). Photovoltaic installations used to have an intermediate reduced regime for systems under 3 kWp. Since 1 October 2025, photovoltaic installations can benefit from VAT at 5.5% provided they meet certain conditions.

This reduced rate is one of the least well-known forms of support, and yet one of the most significant. On an installation costing 10,000 € excl. VAT, the difference between 5.5% and 20% represents 1,450 € of direct savings, with no administrative steps on your part.

The 5 conditions to be met at the same time

The reduced 5.5% rate is not automatic. Five conditions must be met at the same time for you to benefit from it. The absence of just one of them is enough to move the whole service to the 20% rate.

Why exactly these five conditions?

The power ≤ 9 kWp condition corresponds to the residential threshold set by the ministerial tariff order (arrêté tarifaire): above it, the installation falls into a semi-professional or industrial category, excluded from the reduced VAT regime.

The condition concerns residential use, not the age of the home: a new house qualifies just like an old one. The requirement for a home completed more than two years earlier applied to the former 10% rate on improvement work, which was abandoned for photovoltaics on 1 October 2025.

The carbon footprint < 530 kg CO₂eq/kWp condition (and compliance with the heavy metal thresholds) aims to exclude imported panels with a high environmental impact. These criteria are checked as part of the PPE2-V2 certification issued by Certisolis: they are not assessed separately.

The active EMS / SGE condition (Energy Management System, or Système de Gestion d'Énergie in French) is the most recent. The installation must include an active energy management system, capable of actively controlling the equipment, collecting production and consumption data, and optimising self-consumption automatically. This requirement was introduced to ensure that the installation genuinely contributes to grid flexibility. A few examples of EMS: Fronius Smart Meter with control, SolarEdge Home Hub, MyLight Systems...

The PPE2-V2 certification: how to check it?

PPE2-V2 certification (Performances des Panneaux photovoltaïques, 2e édition, Version 2, meaning photovoltaic panel performance, 2nd edition, version 2) is issued by accredited bodies (Bureau Veritas, INES, Certisolis, etc.) and attests that the modules meet performance, durability and traceability criteria in line with the requirements of the decree.

Checking on certisolis.com

The reference database can be accessed at certisolis.com (Certisolis is the French certification body). The process is simple:

• Ask your installer for the exact model reference of the proposed panel (e.g. “Longi Solar LR5-72HBD-540M”).
• Enter this reference on certisolis.com.
• If the panel is certified, its certificate will appear, showing the PPE2-V2 mention and the validity date.

What exactly does the 5.5% rate cover?

When the five conditions are met, the 5.5% rate applies to the whole invoiced service:

• The photovoltaic modules (panels);
• The inverter (microinverters or central inverter) ;
• The cables, junction boxes and electrical protection devices;
• The mounting structures and rails;
• The installation labour, including related roofing work;
• The cable routing and electrical integration work;
• The EMS / SGE (energy management system) linked to the installation, if it is invoiced in the same service as the panels.

On the other hand, if your quote includes a monitoring system (a production tracking unit), its VAT rate depends on how it is integrated: if it is invoiced separately as stand-alone equipment, the 20% rate may apply.

The real saving: how much does the reduced rate represent?

The rate difference (5.5% vs 20%) is 14.5 points. On a standard residential installation, this represents a significant saving that applies from the invoice.

Calculation based on the excl. VAT amount of your installation

Saving = VAT at 20% − VAT at 5.5%. These amounts apply to the total eligible service excl. VAT (excluding the battery and equipment not covered).

What remains subject to the 20% rate

The 5.5% rate does not apply to all equipment and situations related to photovoltaics. Here are the four main exclusions to know about before approving your quote.

The special case of batteries: 20% is mandatory

Storage batteries are the main source of confusion. Article 279-0 bis of the CGI explicitly excludes equipment whose main function is not the production of renewable energy. A battery stores energy: it does not produce it. It is therefore subject to the 20% rate, even if it is installed at the same time as the panels.

Practical consequence: if your installer offers you a combined quote for panels + battery, make sure it clearly itemises the two lines with their respective rates (5.5% for the panels, 20% for the battery). The tax authority may reclassify a single combined quote and apply the 20% rate to the whole if the breakdown is missing.

The role of the RGE installer

Unlike other forms of support (self-consumption bonus (prime à l'autoconsommation), Micro-BIC, etc.), the reduced VAT rate requires no steps on your part. The installer applies the right rate directly on the invoice.

The customer declaration: the cornerstone of the scheme

To protect itself in the event of a tax audit, the installer must have you sign a declaration in which you state that:

• The home is your main or second home (residential use);
• The installation does not exceed 9 kWp.

This declaration is standardised (official French form no. 1301-SD, known as a Cerfa). The installer keeps it in its records for 10 years. If you provide false information, for example by declaring a new home as an old one, the tax liability can fall back on you.

What if the installer applies the wrong rate?

If your quote or invoice shows a 20% rate for an installation that does in fact meet the three conditions, you have two options:

• Before signing: ask for the quote to be corrected. Any reputable installer will know how to apply the right rate.
• After the invoice: ask for a corrected invoice. The installer can issue a credit note and re-invoice at the right rate. It is not a complex procedure.

Frequently asked questions about VAT on solar panels

Glossary of acronyms

The technical terms and abbreviations used in this article, explained simply.

TVA

Taxe sur la Valeur Ajoutée (value added tax)

VAT (TVA in French) is an indirect tax on consumption, collected by businesses on behalf of the State. The rate applicable to solar installations is either 5.5% (conditions met) or 20% (standard rate).

HT

Hors Taxes (excluding VAT)

The price of a good or service before VAT is added. Solar quotes are systematically expressed excluding VAT (HT), then including VAT (TTC).

TTC

Toutes Taxes Comprises (including VAT)

Final price including VAT. This is the amount you actually pay the installer.

CGI

Code Général des Impôts (the French General Tax Code)

Legislative text bringing together all French tax rules. Article 279-0 bis of the CGI is the legal basis for the reduced 5.5% rate on energy work.

kWp

Kilowatt-peak

Unit of the maximum power of a photovoltaic installation, measured under standard sunshine conditions (1,000 W/m², 25 °C). A typical home installation is between 3 and 9 kWp.

PPE2-V2

Performances des Panneaux photovoltaïques (performance of photovoltaic panels), 2nd edition, version 2

French certification attesting that a panel meets criteria for carbon footprint (< 530 kg CO₂eq/kWp), heavy metal restrictions and reliability. Verifiable on certisolis.com (Certisolis is the French certification body).

RGE

Reconnu Garant de l'Environnement (“Recognised Environmental Guarantor”)

Label awarded by Qualibat or Qualifelec (French trade certification bodies) to installers certified for energy renovation work. Mandatory for your installer to be able to apply the reduced 5.5% rate under their own responsibility.

EMS / SGE

Energy Management System (EMS in English, SGE in French)

A device able to actively control a home's electrical equipment (solar generation, consumption, storage). A mandatory condition since 2026 for benefiting from the 5.5% rate: a simple monitoring screen is not enough.

CO₂eq

Carbon dioxide equivalent

A unit expressing the climate impact of a greenhouse gas converted into its CO₂ equivalent. Used to measure the carbon footprint of panels: the 530 kg CO₂eq/kWp threshold is the PPE2-V2 limit.

DGFiP

Direction Générale des Finances Publiques (the French Directorate-General for Public Finances)

The French administration responsible for collecting taxes and carrying out tax audits. It publishes the guidance on how the reduced VAT rates apply.

Cerfa

Centre d'Enregistrement et de Révision des Formulaires Administratifs (the French centre for registering and revising administrative forms)

The body that publishes official forms. Cerfa no. 1301-SD is the declaration your installer must have you sign to justify applying the 5.5% rate.

Micro-BIC

Micro Bénéfices Industriels et Commerciaux (micro regime for industrial and commercial profits)

A simplified tax regime for individuals who sell the electricity produced by their panels. Separate from the VAT scheme: reduced VAT applies to the installation, Micro-BIC to the resale of surplus.

LCOE

Levelised Cost of Energy

Standardised cost of energy: the ratio between the total cost of the installation (net of the self-consumption bonus (prime à l'autoconsommation)) and the energy produced over 25 years. It lets you compare the cost of a solar kWh with the grid price.