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Major Changes to EDF OA: Impact on Solar Projects

The French government has introduced significant changes to the EDF Obligation d'Achat (OA), affecting solar projects up to 500 kWc. This article explores the latest policy updates, their financial impact, and strategic recommendations to help businesses navigate the transition.

The French government has introduced significant changes to the EDF Obligation d'Achat (OA), affecting solar projects up to 500 kWc. This article explores the latest policy updates, their financial impact, and strategic recommendations to help businesses navigate the transition.

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The French government has recently announced major changes to EDF Obligation d'Achat (OA), specifically impacting the S21 purchase obligation for solar panel projects up to 500 kWc. These changes will significantly alter the financial landscape for solar businesses and investors. This article provides an in-depth look at these policy shifts, their implications, and strategic recommendations to help our customers navigate this evolving environment.

Key Policy Changes

1. Removal of EDF OA for Projects Above 200 kWc

Historically, EDF's Obligation d'Achat (OA) scheme ensured that electricity from solar installations could be sold to EDF at a guaranteed price. However, starting July 2025, projects exceeding 200 kWc will no longer be eligible for EDF OA.

đź”´ What This Means:

  • Large-scale projects (200-500 kWc) will need to find alternative energy sales solutions.
  • Options include:
    • Direct contracts with consumers (Power Purchase Agreements - PPAs)
    • Participation in energy markets (via electricity suppliers or aggregators)
    • Collective self-consumption models (via SPVs)

2. 6% Quarterly Reduction in Tariffs for 9-200 kWc Projects

The feed-in tariffs for mid-sized installations will decrease by 6% every quarter.

📉 Example: A project that secures a tariff of 10 c€/kWh in Q1 2025 will see this drop to 9.4 c€/kWh in Q2 and 8.84 c€/kWh in Q3, compounding financial losses for delays. However, once an EDF OA contract is secured, the tariff remains fixed for 20 years, ensuring long-term price stability.

đź’ˇ Takeaway: To maximize revenue, businesses should complete installations as soon as possible before rates decline further.

3. Halving of State Aid for Residential Installations & Reduced Surplus Sale Rates

  • State aid for self-consumption installations has been reduced by 50%.
  • The tariff for surplus electricity sold to the grid has dropped from 12.76 c€/kWh to just 4 c€/kWh.

🏠 Impact:

  • Residential and small-scale producers will see lower financial returns.
  • Self-consumption will become the primary focus for maximizing savings.

Comparative Tariff Evolution

Residential Market Evolution: Self-Consumption Premiums

Power CapacityAug 1, 2023Aug 1, 2024Feb 1, 2025
3 kWc1,323 €768 €384 €
6 kWc1,985 €1,152 €576 €
9 kWc2,977 €1,728 €864 €

Surplus Sale Rate (Self-Consumption)

Power RangeAug 1, 2023Aug 1, 2024Feb 1, 2025
3-9 kWc13.39 c€/kWh12.76 c€/kWh4 c€/kWh

Tertiary Market Evolution (Total Tariff)

Power CapacityAug 1, 2023Aug 1, 2024Feb 1, 2025
100-200 kWc12.77 c€/kWh10.88 c€/kWh9.5 c€/kWh
200-500 kWc12.77 c€/kWh10.88 c€/kWh(EDF OA Removed)

⏳ Key Insight:

  • Projects between 9-100 kWc still have access to EDF OA, but rates will continue declining.
  • Above 200 kWc, EDF OA completely disappears, forcing alternative revenue strategies.

Strategic Recommendations

1. Urgent: Submit Projects above 200 kWp Before February 2025

⚠️ Deadline: ENEDIS submission must be completed by February 2025 to obtain CRD before July.
âś… Why? CRD takes 3-4 months, so delays risk losing current EDF OA rates.

2. Consider Battery Storage for Self-Consumption

✅ Why? With surplus sale rates dropping from 12.76 c€/kWh to 4 c€/kWh, selling excess energy is no longer lucrative.
âś… Solution: Batteries store energy for later use, reducing grid dependency and enhancing long-term savings.

3. Expedite 9-200 kWc Installations

⚠️ Every Quarter Lost = 6% Less Revenue. Don’t delay!

Who Is Affected?

🚨 Most Affected:

  • Large-scale producers (200-500 kWc): EDF OA will be gone after July 2025.
  • Developers planning >200 kWc: No clear support until 2026.
  • Projects under S21 contracts: Tariff cuts reduce financial returns.

✔️ Less Affected:

  • High self-consumption projects: They are less reliant on selling surplus electricity.
  • Projects under 100 kWc: They still benefit from EDF OA but should act quickly.

Future of Projects Above 200 kWc

đź“… 2025: No EDF OA for 200-500 kWc. Transition period.
đź“… 2026: New simplified tenders start (details unknown).

đź’ˇ Key takeaway: Until 2026, 200-500 kWc projects must seek alternative revenue models (direct sales, energy markets, PPAs).

AO CRE for 200 kWc+ Projects

The AO CRE (Appel d'Offres de la Commission de Régulation de l'Énergie) is a tendering process for large-scale photovoltaic projects.

🚨 Challenges: 

  • Bureaucratic complexity
  • Strict approval requirements
  • Limited selection process

đź“Ś Verdict: AO CRE is not a guaranteed solution.

Leveraging Collective Self-Consumption: The SPV Model

What is an SPV?

An SPV (Special Purpose Vehicle) is an entity that manages energy production and sales directly to consumers.

đź›  How to Set Up an SPV:

  1. Create an SPV to manage energy sales.
  2. Secure contracts with energy buyers.
  3. ENEDIS monitors consumption distribution.
  4. Invoice customers directly.

âś… Why Use an SPV?

  • Bypasses EDF OA restrictions.
  • Provides stable revenue with private buyers.
  • Ensures long-term financial predictability.

Conclusion: Act Now!

🚀 Time is running out!

  1. Submit projects above 200 kWc before the end of February 2025.
  2. Secure CRD before July 2025.
  3. Explore battery storage to increase self-consumption.
  4. For projects above 200 kWc, consider SPVs or PPAs.

📢 Let’s discuss your solar project today! Contact us for expert guidance on navigating these changes.