High Tariffs Fuel French Solar Boom

The strong incentives developed by France for solar power projects over the last years have paid off beyond expectation. By the end of 2006, the total solar capacity connected to the French mainland grid accounted for six megawatts ("MW"); by the end of 2008, this figure had already risen to 18 MW and is expected to boom at 850 MW by the end of 2010. Moreover, the solar power projects filed to date represent an overall capacity of 3,000 MW. France is therefore far beyond its objective of 1,100 MW total connected solar capacity by the end of 2012 and expects to reach its final objective of 5,400 MW total connected solar capacity much sooner than the planned deadline of 2020.

This exponential growth of solar projects in the country is due to France's aggressive development policy, which is served by strong incentives for investors in terms of tax deductibility of photovoltaic investments and preferential solar electricity purchase rates among the highest in Europe,