France Sets New Record With 4GW Solar Capacity Addition in 2023

According to the latest report from the International Energy Agency's Solar Photovoltaic System Plan (IEA PVPS), France adds 4GW of solar installed capacity in 2023, setting a record high in history. This impressive growth is attributed to several factors, including falling electricity prices, a substantial reduction in solar module costs, and the implementation of the French government's Renewable Energy Acceleration Law.

The report highlights that the newly installed capacity in 2023 is a notable increase from the revised 3.2GW figure in 2022. This growth is largely driven by the declining cost of solar power, which has become more competitive due to lower market electricity prices and a significant drop in the cost of solar modules. European buyers of solar modules have been stockpiling in response to supply chain uncertainties, while a large-scale capacity expansion by Asian manufacturers and trade barriers in the U.S. market have led to an oversupply in Europe. This excess supply has further contributed to the reduction in module prices, making solar energy projects more affordable for investors.

The French government's Renewable Energy Acceleration Law, which came into effect in 2023, has been instrumental in this expansion. The law mandates the use of solar energy on newly constructed or renovated buildings larger than 500 square meters, and requires solar-powered parking sheds for parking lots exceeding 1,500 square meters. Additionally, it encourages the construction of photovoltaic systems on unused land near roads, canals, and railways. These regulations have significantly boosted the deployment of solar photovoltaic systems across France.

In terms of market segmentation, residential solar installations accounted for 24% of the newly installed capacity in 2023, with nearly 40% of this new capacity dedicated to self-consumption. According to the report, approximately 7GW (DC) of new solar projects have entered the grid connection queue in 2023, with over 26GW of additional reserve projects planned for future development.

This surge in solar power growth reflects France's commitment to expanding its renewable energy infrastructure, positioning the country as a significant player in the global transition toward clean energy.