Individual self consumption is becoming increasingly popular among homeowners, businesses and local authorities. As energy prices continue to rise, producing and consuming your own electricity is becoming an essential strategy for reducing costs and gaining greater control over energy consumption.
In 2026, a reduced VAT rate of 5.5% applies to photovoltaic installations up to 9 kWp carried out by an RGE certified installer. The self consumption bonus remains available for applications submitted before June 4, 2026, while new projects are governed by the updated S21 framework.
As an RGE and QualiPV certified solar installer operating throughout the Var and Alpes Maritimes regions, Edmond Solutions has been supporting self consumption projects for more than 15 years.
What is self consumption and what are the different models?
Self consumption consists of producing electricity to cover all or part of your own energy needs. Solar photovoltaic technology remains the most accessible and cost effective solution available today.
There are two main approaches.
Individual Self Consumption: A single user produces and consumes their own electricity. This may be a homeowner with solar panels or a business operating a photovoltaic roof installation.
Collective Self Consumption: Several participants share locally generated solar electricity. This may involve apartment residents, co owners, local authorities or community energy initiatives distributing electricity according to predefined contractual arrangements.
How does an individual self consumption system work?
An individual self consumption installation is based on photovoltaic panels installed on a suitably exposed roof. The electricity produced is consumed directly within the building. Any surplus electricity can be exported to the grid, stored in a physical battery or managed through a virtual storage solution.
Main components | Rôle |
|---|---|
Photovoltaic Panels | Generate electricity from solar radiation |
Inverter | Converts direct current into alternating current compatible with household and commercial electrical systems |
Linky Smart Meter | Measures production, consumption and surplus electricity exported to the grid |
Physical Battery or Virtual Storage Solution | Stores unused energy for later consumption |
Economic benefits and opportunities in 2026
The economic and environmental advantages of self consumption continue to increase year after year. By generating their own electricity, households, businesses and local authorities can reduce electricity bills while limiting exposure to energy market volatility. The higher the self consumption rate, the greater the financial benefit.
In 2026, the reduced 5.5% VAT rate significantly improves return on investment for eligible installations. The regulatory framework also encourages collective projects and the deployment of intelligent energy management systems.
Lower electricity bills and greater energy independence
With an optimised self consumption rate, often ranging between 30% and 50%, electricity costs can be significantly reduced. This provides greater visibility over future energy expenses and helps protect against price fluctuations. Thanks to virtual storage solutions and advanced smart metering technologies, every kilowatt hour produced can be used more efficiently.
Making the most of surplus electricity
Under the new S21 framework applicable to applications submitted from June 4, 2026, surplus electricity is purchased at €0.011 per kWh excluding VAT, indexed annually by 2% over a 20 year period and limited to 1,600 hours per year.
As a result, project profitability now relies primarily on self consumed electricity and bill savings rather than surplus electricity sales. This is why system sizing must be carefully aligned with actual consumption patterns.
Key steps to a successful self consumption project
Launching a self consumption project requires a detailed preliminary assessment and careful management of every stage of implementation. Edmond Solutions supports clients throughout the entire process with technical expertise, administrative assistance and personalised project management.
Solar Potential Assessment: Evaluation of roof orientation, available surface area, shading conditions and solar exposure. The Var region benefits from more than 2,800 hours of sunshine per year.
Technical Sizing: Selection of the most appropriate system size based on actual consumption and future energy requirements, including electric heating and electric vehicle charging.
Administrative Procedures: Grid connection applications, regulatory declarations, self consumption agreements and Enedis connection procedures.
Installer Selection: Choosing a certified RGE and QualiPV installer with strong guarantees, proven expertise and long term maintenance capabilities.
Energy Management Optimisation: Scheduling energy intensive appliances during solar production periods and using intelligent energy management systems to maximise self consumption.
Installation costs and available financial incentives in 2026
Observed market prices in 2026 are generally as follows:
Power (kWc) | Price range including VAT (installation included) |
|---|---|
3 kWp installation | Between €6,000 and €10,500 including installation |
6 kWp installation | Between €9,500 and €14,000 including installation |
9 kWp installation | Between €13,000 and €19,000 including installation |
Available Incentives
- Reduced 5.5% VAT rate for photovoltaic installations up to 9 kWp carried out by an RGE certified installer on properties older than two years using eligible certified panels.
- Self consumption bonus of €80 per kWp for applications submitted before June 4, 2026.
- Regional and local incentives available throughout the PACA region.
- Preferential green financing and energy transition loans.
Regulations governing self consumption in France
French regulations continue to support the development of both individual and collective self consumption projects.
The S21 tariff framework introduced on June 1, 2026 marks a significant turning point. The traditional self consumption bonus no longer applies to new contracts and surplus electricity buyback rates have been reduced to €0.011 per kWh excluding VAT.
Optimising on site consumption has therefore become the main economic driver of photovoltaic projects.
Self consumption versus full electricity export
The objective of self consumption is to reduce electricity bills by consuming the energy produced directly on site. Historically, full electricity export could offer attractive returns. However, declining buyback rates have reduced its appeal. Under the S21 framework, individual self consumption generally provides better long term profitability and greater energy independence.
The future of self consumption in 2026
The adoption of self consumption is accelerating rapidly thanks to government initiatives, local authority support and technological innovation. Most new residential photovoltaic installations are expected to incorporate self consumption strategies, supported by smart energy management systems and the continued growth of electric mobility.
The exceptional solar resource available throughout the Var and Alpes Maritimes regions provides particularly attractive returns on investment for homeowners, businesses and local authorities. Some challenges remain, including storage costs, accessibility for lower income households and the adaptation of electricity networks to increasing levels of decentralised generation.
Frequently asked questions
What is the difference between individual and collective self consumption?
Individual self consumption involves a single consumer directly using the electricity they produce. Collective self consumption allows several consumers to share locally generated photovoltaic electricity according to predefined allocation rules.
How can i Assess the profitability of a photovoltaic project?
Profitability depends on the initial investment, the self consumption rate, available incentives and the value of surplus electricity exported to the grid.
A personalised sizing study is essential to accurately evaluate expected savings and return on investment.
What financial incentives are available for self consumption in 2026?
Eligible installations can benefit from the reduced 5.5% VAT rate, the self consumption bonus for qualifying applications submitted before June 4, 2026, regional incentives and green financing solutions.
What are the main barriers to large scale self consumption?
The main challenges include the initial investment required, the cost of physical battery storage systems, regional differences in solar production and the need to adapt electricity networks to increasing decentralised generation.
