The solar panel market - France

Solar panels are designed to harness the sun's energy and transform it into either electricity or heat. There are two types of solar panel: photovoltaic panels, which generate electricity, and thermal panels, which produce heat. The global solar panel market is experiencing exceptional growth, with a projected 88.69 billion euros by 2028(+28.82%/year), driven by record investments(240 billion dollars in 2022, +40% vs 2019) and global demand estimated at between 461 and 647 GW in 2024. Solar power already accounts for 66% of the world's installed renewable capacity, with China's industry dominance, capturing 82.3% of French imports and 56% of global exports to Europe. Technologically, the market is structured around monocrystalline silicon(60% of the market, efficiency 16-21%), with promising innovations such as hybrid perovskite cells(22% potential efficiency) and concentrating cells(20-30%). The average cost of installations has fallen by 46% in 5 years(€2.6/W), with a total cost of around €7,000 to €8,000 for a 3 kWp domestic installation, and an estimated return on investment of between 10 and 15 years. Demand is highly concentrated in the south of France(70% of the installed base), supported by favorable public opinion(89% positive image, 86% support for development) and an attractive tax framework: tax-free income, reduced VAT rate of 10%, self-consumption bonus of up to €350/kWp, feed-in tariffs of up to €10.31/kWh.

The sector benefits from a strong industrial dynamic, with the arrival of players such as Carbon Solar(5 GW/year, €1.7 billion investment in Fos-sur-Mer) and DAS Solar(3 GW, €109 million investment), while leaders such as JinkoSolar($12.64 billion) and Voltalia(€546 million) are stepping up their presence. Photovoltaics is establishing itself as a strategic lever for energy transition, industrial growth and sustainable value creation.