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Press Release

Publisher: Sterr-K

New Tariff Decree for Solar Energy in France

- Simplified building integrated photovoltaics - The introduction of a new category of solar energy installations

Paris/Freiburg/Berlin - Since last year, the French solar industry has been waiting for the new decree of 12 January to be issued regulating the new feed-in tariffs for solar energy. The new decree was finally published on 14 January, and is now valid for solar plants not yet in operation.

The new decree distinguishes the following categories of photovoltaic installations: building integrated photovoltaics (\"integration au bati\"), simplified building integrated photovoltaics (\"integration simplifiée au bati\") and other solar plants. The former tariff regulations also provided for a bonus system for building integrated solar plants (\"prime à l’integration de bâtiment\").

The new decree sets forth the requirements for both building integration and simplified building integration categories. Whether or not the requirements of either category have been fulfilled shall be determined on a case by case basis and must be evidenced by a declaration of conformity.

\"The new decree still raises many questions, in particular with respect to the requirements of simplified building integration, as this new category has limited practical experience to draw upon. However, there is no longer any ambiguity concerning the tariff levels. This now allows for increased planning reliability for project developers of new projects\" states Olivier Fazio, Avocat of Sterr-Kölln & Partner in Paris. An amendment to the decree published on 16 January already provides for more specific details on the tariffs and on the integration of certain elements of building fronts.

New Tariffs

- The tariff for building integrated plants is 0.58 EUR per kWh if the building is used for residential purposes, for educational institutions or for health services. For other buildings, e.g. supermarkets or shop floors, the tariff is 0.50 EUR per kwh.

- The tariff for simplified building integration is 0.42 EUR per kWh.

- The tariff for outdoor plants in the French overseas territories and Corsica the tariff is 0.40 EUR per kWh. The tariff for mainland France varies according to the geographic location of the department between 31.4 (e.g. Departement Herault) and 37.68 eurocent per kWh (e.g. Departement Somme) which is supposed to compensate for the different intensities of solar radiation. Outdoor plants with a power output of up to 250 kWh in mainland France receive a remuneration of 31.4 eurocent per kWh, independent from the department they are located in.

For all applications to connect with the grid that are filed by 31/12/2011, no degression of the initial payment amount will follow. For applications filed after that date, an annual degression of 10% on the initial payments shall be applied. All payments will be adapted to the annual evolution of price and income over the 20 year tariff period.

Annual limit

The above-mentioned payments are limited to 1,500 hours of sunshine p.a. for mainland France and 1,800 for French overseas territories. For adjusted solar plants, the limit is 2,200 for mainland France and 2,600 for overseas territories. All electricity produced above this limit are remunerated with 5 eurocent per kWh. The limit does not apply to solar thermal power plants.

Sterr-Kölln & Partner offers a multidisciplinary consulting service with offices in Freiburg, Berlin and Paris. We are proficient in the field of renewable energies and energy efficiency and have been working alongside international banks, investors, project developers, producers and communities for more than 12 years.

Paris/Freiburg/Berlin, January 27, 2010

Publication and Reprint free of charge; please send a voucher copy to
Sterr-Kölln & Partner.

Attention editorial offices: For further questions please contact:

Mrs. Sibylle Weiler
Sterr-Kölln & Partner
4, Avenue Bertie Albrecht
75008 Paris

Mr. Markus Jenne
Sterr-Kölln & Partner
Emmy-Noether Str. 2
D-79110 Freiburg
Tel: +49 761 490 54 0
Fax: +49 761 49 34 68

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