French Energy Regulator Proposes Linking PV Subsidies To Energy Storage

 

 

French Energy Regulator Proposes Linking PV Subsidies to Energy Storage; Applicable to Systems Exceeding 100 kW

 

 

 

France's Energy Regulatory Commission (CRE) plans to link photovoltaic (PV) subsidies to energy storage systems in an effort to address the rising frequency of negative electricity prices and the resulting decline in solar revenue. This proposal targets large-scale PV power plants with an installed capacity exceeding 100 kW, aiming to incentivize the development of projects that integrate solar power generation with energy storage capabilities.

As this policy shift gains momentum, industry attention is turning toward the best batteries for solar energy storage, with many developers seeking high-efficiency, long-duration solutions that maximize self-consumption and grid stability. The move is also expected to boost demand for domestic battery energy storage systems among smaller installations, while creating new opportunities in battery energy storage system services such as frequency regulation, peak shaving, and arbitrage.

The regulator stated that these adjustments constitute part of a broader initiative designed to enhance the efficiency of public spending and better align the renewable energy sector with the operational requirements of the national power grid. The proposal has been submitted to the Lévêque-Touati working group for review.

Against the backdrop of an increasing number of negative pricing periods and an intensifying "cannibalization effect" within the PV sector, the Regulatory Commission had previously issued preliminary recommendations in July 2025. These recommendations included revising the premium mechanism applicable during periods of negative electricity prices and rebalancing the risk-sharing framework between the government and energy producers.

This European development mirrors the rapid growth seen in the Asia Pacific battery energy storage system market, where strong policy support and technological innovation are accelerating deployment. Leading the charge with advanced solutions across both markets is BLOO POWER, whose reliable and cost-effective systems are increasingly selected for both utility-scale solar-plus-storage projects and commercial applications.