Published in the Official Journal on June 4 and entered into force the next day, the decree of June 1, 2026 marks a major turning point for residential photovoltaics. For years, individuals have benefited from a model based in part on public aid and the resale of surplus electricity at a guaranteed rate. This model is now a thing of the past.
However, this reform does not signal the end of solar power for individuals. Equipment costs have fallen sharply in recent yearswhile new solutions emerge to valorize the electricity produced. For Joël Mercy, president of the Group of Individual Photovoltaic Electricity Producers (GPPEP), this change was even expected for a long time. “We anticipated. We have known for a while that the subsidies were going to stop. As early as 2010, the State was already talking about the gradual end of the purchasing obligation”he recalls.
Why does the 2026 reform worry individuals so much?
The most commented on point concerns the fall in the surplus buy-in tariff. From now on, electricity injected into the network is remunerated at only 1.1 euro cents per kilowatt hourcompared to 4 cents previously for small residential installations, and up to 12.69 cents before the first reform of 2025. At the same time, the investment bonus was eliminated for new installations affected by the S21 system. Result ? Individuals can no longer count on the same support mechanisms as before to make their project profitable.
Do solar panels remain profitable despite the drop in the feed-in tariff?
Yes, but the economic logic has changed. The first reason is the spectacular drop in the cost of equipment. A 3 kWp residential installation cost more than 20,000 euros at the start of the 2010s. Today, you have to count around 6,500 euros for equivalent power. This drop in prices partly compensates for the disappearance of public aid. It mechanically reduces the time necessary to recover your initial investment.
What aid remains available to install solar panels in 2026?
The removal of the investment bonus does not mean the disappearance of all support mechanisms. Certain aid remains accessible to individuals. Photovoltaic installations with a power of less than or equal to 3 kWp always benefit from a VAT rate reduced to 10% when they are installed on a home completed more than two years ago. Some local authorities also continue to offer subsidies or additional assistance, even if this varies greatly from one territory to another.
Individuals can also use traditional financing solutions, such as work loans or certain loans dedicated to energy renovation. On the other hand, unlike thermal or hybrid solar panels, photovoltaic installations producing only electricity are generally not eligible for MaPrimeRénov’. For Joël Mercy, however, the main thing is no longer in public aid. ” Today, profitability relies above all on the correct sizing of the installation and on the capacity to consume one’s own production”he recalls.
What will now be the payback time for a photovoltaic installation?
The reform should extend the depreciation period, but to a limited extent. According to GPPEP estimates, the addition of a storage battery, which has become more relevant in the new regulatory context, could extend the return on investment by two to three years. “Instead of paying off your installation in ten years, you will amortize it in thirteen years in the worst case scenario »believes Joël Mercy. This increase is explained by the additional cost of storage. In return, households consume more of their own production and buy less electricity from the network.
How much can you save on your electricity bill using solar panels?
This is now the central question. With a surplus buy-in tariff reduced to 1.1 euro cents per kilowatt hour, the profitability of a photovoltaic installation relies above all on the savings made on the electricity bill. A 3 kWp residential installation generally produces between 3,000 and 4,000 kWh per year depending on the region, roof orientation and sunlight conditions. The more the household directly consumes this electricity, the greater the financial gain. Each kilowatt hour self-consumed is in fact so much electricity that is not purchased from the energy supplier. For Joël Mercy, president of GPPEP, this is precisely where the new economic model of photovoltaics is located. “Today, we have to think in terms of savings rather than income from resale”he explains.
For example, a household consuming a large part of its production can save several hundred euros per year on its electricity bill. These gains evene tendency to increase when electricity prices are progressing. Conversely, individuals who inject most of their production into the network will see the profitability of their installation decline sharply since the reform.
The interest in storage batteries then takes on its full meaning. By allowing the electricity produced during the day to be saved for consumption in the evening, they significantly increase the rate of self-consumption and further reduce purchases of electricity from the network. A strategy that more and more individuals are now considering to optimize the profitability of their solar installation.
Why is self-consumption becoming the key to profitability?
The real revolution introduced by the reform is here. When the surplus is sold for only 1.1 euro cents per kilowatt hour, it becomes much more attractive to consume your own electricity rather than resell it. It is precisely for this reason that the sector is now focusing on domestic batteries. Their price has fallen sharply in recent years. “A battery that cost 10,000 euros two years ago is today around 5,000 euros »observes Joël Mercy.
According to him, this trend should continue thanks to the rise of the electric vehicle market, the development of recycling and the arrival of new technologies such as sodium-ion batteries. The objective is simple: store electricity produced during the day to use it in the evening or at nightt, when the accommodation really needs it.
Which households will be most penalized by the reform?
Not all projects will be affected equally. Oversized installations are the main losers. With a resale price becoming almost symbolic, producing much more than one’s needs no longer has the same economic interest. “You have to invest in an installation based on the needs of the household”insists Joël Mercy. “If the 2026 reform does not kill profitability, it will still punish poorly sized projects. » Households that have correctly adapted the power of their installation to their electricity consumption should therefore better navigate this transition.
