France Renewable Energy Tax Guide
French tax incentives for renewable energy and energy transition. The guide covers: the reduced TVA at 5.5% for energy-efficiency works — the renovation and improvement of housing to improve energy performance (the "travaux d'amélioration de la performance énergétique") are subject to TVA at 5.5% (instead of 20%); the works include: insulation (walls, roofs, floors), heating system replacement (heat pumps, solar water heaters, biomass boilers), ventilation, renewable energy installations (solar panels, wind turbines); the conditions: the property must be more than 2 years old, the work must be carried out by a professional (RGE — Reconnu Garant de l'Environnement), the invoice must show the TVA rate and the RGE certification number; the MaPrimeRénov' — a government grant for energy-efficiency works (not a tax credit): the grant is available for all households (not just low-income), up to €20,000 per home (2026); the grant is paid directly by the Agence Nationale de l'Habitat (ANAH) after the works; the Crédit d'Impôt pour la Transition Énergétique (CITE) — the CITE was replaced by MaPrimeRénov' from 2020, but some specific credits remain for (a) the acquisition of a charge point for an electric vehicle (the "Crédit d'Impôt pour l'Installation d'un Système de Charge pour Véhicule Électrique") — 75% of the equipment and installation costs up to €300, (b) the installation of a wood heating system in a new building; the renewable energy production — corporate tax treatment: the income from the sale of electricity generated by solar panels, wind turbines, or biomass is taxed as BIC (for individuals) or IS (for companies); the depreciation of the installation is deductible (the "amortissement" — typically 20 years for solar panels, 15 years for wind turbines); the tax credits for research and development (CIR) apply to R&D expenses for new renewable energy technologies; the exonération de taxe foncière for renewable energy installations — the communes can grant a temporary exemption from taxe foncière for renewable energy installations (the "exonération de taxe foncière pour les installations de production d'énergie renouvelable") — typically 5 years from the year following the installation; the green energy cooperatives — the "sociétés coopératives d'intérêt collectif (SCIC)" for renewable energy production are subject to the standard corporate tax rules but can benefit from the exemption from the C3S (social solidarity contribution) and the TVA exemption for small producers (franchise en base).
France has ambitious renewable energy targets, and the tax incentives for energy-efficiency works and renewable energy production are generous. All amounts in Euros (EUR). For related reading, see our VAT Guide → and Property Tax Guide →.
Reduced TVA for Energy Works
- 5.5% TVA rate: Energy-efficiency renovation works in housing (more than 2 years old) benefit from the 5.5% TVA rate. The works must be carried out by a professional with RGE certification. Eligible works: (a) insulation (walls, roof, floor), (b) heating system replacement (heat pump, biomass boiler, gas condensing boiler), (c) solar thermal and photovoltaic installations, (d) mechanical ventilation (VMC), (e) energy management systems (thermostats, smart meters). The rate applies to both the labour and the materials.
Renewable Energy Production — Taxation
- Income from electricity sale: The sale of electricity generated by renewable energy installations (solar, wind, biomass) is taxable. For individuals: the income is taxed as BIC (the micro-BIC regime — 71% deduction — applies if the annual income is below €77,700). For companies: the income is taxed at the standard corporate tax rate (15% or 25%). The installation can be depreciated (amorti) over its useful life.
- Exoneration from taxe foncière: The commune can exempt renewable energy installations from the taxe foncière for 5 years. The exemption applies to the "installations de production d'énergie renouvelable" (solar panels, wind turbines, biomass boilers, geothermal installations).
For the corporate tax treatment of renewable energy companies, see our Corporate Tax Guide →. For the CIR research tax credit, see our Corporate Tax Guide →.