Reed Smith In-Depth

On 1 December 2021, the reduction in the feed-in tariff for electricity produced by photovoltaic installations with a peak power of more than 250 kW for purchase contracts concluded before August 2010, as provided for in Article 225 of the French Finance Act for 2021, will come into force. The reduction in the feed-in tariff will have an impact on most economic operators in the sector. Although the system provides for a safeguard clause reserved for operators whose economic viability is compromised, it is possible that the tariff reduction, without compromising the economic viability of the producer, may affect its financial situation or the value of its assets. This note presents the new applicable regime and addresses the issue of possible remedies against the State for foreign operators affected by the tariff reduction.

Read the full article, available in French.