According to the International Energy Agency’s latest Solar Photovoltaic System Plan report (IEA PVPS), France will add 4GW of solar installed capacity in 2023, hitting a record high. This increase was mainly due to a fall in market electricity prices, a significant decline in the price of solar modules and the introduction of the French government’s Renewable Energy Acceleration Law.
The report points out that the new installed capacity in 2023 represents a significant increase compared to the revised 3.2GW in 2022. The fall in market electricity prices and the sharp decline in solar module prices have reduced the investment cost of new photovoltaic installations, making solar photovoltaic power generation more competitive. Hoarding by European solar panel buyers, coupled with massive capacity expansion by Asian manufacturers and trade barriers in the U.S. market, has led to supply exceeding demand in Europe, further driving down module prices.
In addition, the French government’s Renewable Energy Acceleration Law, which will come into force in 2023, has also played an important role. The law mandates the use of solar energy on new or renovated buildings of more than 500 square meters, the installation of solar parking sheds for parking lots of more than 1,500 square meters, and the construction of photovoltaic systems on unused land surfaces near roads, canals and railway lines. The implementation of these measures has promoted the wide application of solar photovoltaic systems.
It is worth noting that the market share of residential and commercial solar installations in 2023 is larger than in previous years. Residential systems accounted for 24% of new installed capacity, and commercial systems accounted for 25%, both significant increases from 2022. The proportion of large-scale industrial or ground power plant PV in new installed capacity fell from more than 50% to 37% in 2022. This reflects the change in the structure of the French solar PV market, with increased residential and commercial installations for self-use replacing some of the large ground-based power plant PV installations.
The IEA said that while there was a small solar boom in much of Europe in 2023, the figure for 2024 is likely to show a decline as electricity prices are largely stable. However, solar PV remains the only clean energy technology where investment is on track to meet the 2030 targets set at COP28 last year.
By the end of 2023, France’s grid-connected solar PV installed capacity has reached about 24.5GW. With the continuous progress of technology and the continuous support of policies, the French solar PV market is expected to continue to maintain stable growth.
Post time: Oct-15-2024