The European Commission has granted approval to a €2.9 billion French aid scheme designed to support investments in green industries. Aligned with the Green Deal Industrial Plan, the aid will be provided in the form of a tax credit, targeting companies planning projects in the production of solar panels, batteries, and key components essential for renewable energy equipment.
The aid scheme adheres to the conditions outlined in the Temporary Crisis and Transition Framework (TCTF), focusing on bolstering the production of strategic equipment for the transition to a net-zero economy. The aid, capped at €2.25 million per beneficiary, is set to be granted until December 31, 2025.
France's initiative aligns with the broader European movement toward fostering domestic solar manufacturing. Several companies, including startups like Heliup, Holosolis, and Carbon, have announced plans to establish solar module assembly plants in the country, contributing to the growth of solar upstream activities.
Margrethe Vestager, Executive Vice-President in charge of competition policy at the European Commission, emphasized the role of the French tax credit scheme in supporting Europe's ambitious climate goals. The EC has previously approved similar aid schemes in Austria, Belgium, Germany, Hungary, Italy, Slovakia, and Spain, amounting to a total of €9.1 billion, with additional schemes in the pipeline.
As European countries work to build domestic solar manufacturing industries, updates to renewable targets are also underway. France, in its revised target for 2030, aims to achieve 60GW of installed solar PV capacity, reflecting a commitment to advancing sustainable energy practices.