Until now, the profitability of a photovoltaic installation for self-consumption relied on two complementary levers: financial aid granted at the time of investment and revenue generated by selling the electricity produced. In 2026, this model has changed significantly. Since the decree of 1 June, which came into force on 5 June, feed-in tariffs have been drastically reduced, while the self-consumption premium has been completely removed.
Does this mean that installing photovoltaic panels is no longer profitable? No! But the return-on-investment calculation now relies on a different logic: producing electricity to reduce purchases from the grid and better value every solar kilowatt-hour.
In this practical guide, the Edmond Solutions team reviews the latest regulatory changes and presents the most relevant solutions to make your solar installation profitable in 2026.
Change no. 1: with a feed-in tariff divided by 4, selling surplus electricity is no longer enough to make an installation profitable
Let’s start from the beginning. A photovoltaic self-consumption installation produces electricity during daylight hours. When you consume this energy immediately, you reduce the electricity you buy from your supplier. And when your production exceeds your needs, the excess is injected into the grid: this is what is known as surplus electricity.
For a long time, this practice represented an interesting additional source of income. It made it possible to value the kilowatt-hours that were not consumed and shorten the payback period of the installation. But the situation has changed. Since 5 June 2026, surplus electricity injected by new installations has been purchased at a single tariff of 1.1 euro cent per kilowatt-hour, compared with 4 to 4.73 cents previously, depending on the power of the installation. At this level of remuneration, selling surplus electricity offers limited value. The comparison is clear: for an individual on the regulated Tarif Bleu, each solar kilowatt-hour consumed on site avoids buying electricity from the supplier at around 19 to 20 euro cents. On one side, 1.1 cent earned; on the other, almost 20 cents saved.
The economic logic is therefore reversed: surplus electricity is no longer a source of revenue, but residual production that must be better valued.
Good to know: if you signed an EDF Obligation d’Achat purchase contract before the new rules came into force, these rules do not retroactively change contracts that have already been concluded. The feed-in tariff and the conditions set out in your contract therefore continue to apply for its full duration.
Who sets the solar surplus feed-in tariff and how?
The feed-in tariff is set by ministerial decree, after consultation with the Commission de régulation de l’énergie (CRE), the French Energy Regulatory Commission. Its level takes into account the value of solar electricity on the market. However, photovoltaic panels mainly produce electricity in the middle of the day, when sunlight is strongest. At these times, many installations inject their surplus electricity into the grid simultaneously. When solar production becomes very abundant while demand remains stable, the value of this electricity falls. In its April 2026 opinion, the CRE therefore considered that a tariff of 1.1 euro cent per kilowatt-hour broadly reflected the economic value of the injected surplus. This level remunerates the electricity produced without increasing public expenditure.
Change no. 2: without the self-consumption premium, profitability depends on better use of the electricity produced
The removal of the self-consumption premium does not mean the end of profitable solar power. It simply changes the way return on investment is calculated. Self-consumption is now the main economic driver of the project. The principle is simple: every kilowatt-hour you produce and consume yourself is a kilowatt-hour you do not buy from your supplier. At home, this solar energy can power the water heater, household appliances, heat pump, air conditioning or the charging station for your electric vehicle. In a business, it can cover part of the needs of offices, workshops, cold rooms, machines or a vehicle fleet.
The golden rule? The more your consumption coincides with sunshine hours, the more profitable your installation becomes. Businesses that operate during the day therefore often have a naturally favourable profile. And if your home is empty during production hours, the whole challenge is to schedule your equipment or store part of the energy for later use.
But without the self-consumption premium, is photovoltaics still profitable?
Yes, provided you think differently. Until 5 June 2026, the self-consumption premium helped reduce the initial cost of some installations. Its removal changes the return-on-investment calculation, but it does not call the economic logic of the project into question: a well-designed installation remains profitable thanks to the savings it generates year after year. In practical terms, a project is no longer justified by start-up aid, but by its performance over its entire service life. To assess this, it is necessary to study the total cost of the installation, estimated production, expected self-consumption rate, foreseeable changes in electricity prices, maintenance costs and equipment lifespan. This is precisely why sizing is essential. An installation adapted to real usage can remain efficient without depending on public aid. Conversely, an oversized system will produce more low-value surplus and take longer to pay for itself.
Good to know: some residential installations with a power rating of up to 9 kWp may still benefit from a reduced VAT rate, provided they meet the technical and environmental criteria in force.
Self-consumption rate and self-sufficiency rate: two concepts that should not be confused
Before going further, two indicators deserve clarification:
- The self-consumption rate, which corresponds to the share of your solar production that you consume directly
- The self-sufficiency rate, which measures the share of your electricity needs covered by your photovoltaic panels
The distinction is important. A high-power installation can produce a lot of electricity while still having a low self-consumption rate if the building consumes little during the day. Conversely, a correctly sized installation can make good use of a significant share of its production, even if it does not cover all annual needs.
The aim is therefore not to install as many panels as possible, but to find the right balance between installed power, expected production and real usage.
The levers to better value solar production in 2026
When direct self-consumption is not enough to absorb all production, three solutions can be considered to better value solar surplus: physical storage, virtual batteries and collective self-consumption.
1. Physical storage: aiming for energy autonomy
A physical battery stores the electricity you do not consume immediately at your premises. Instead of being injected into the grid, the surplus produced during the day charges the battery. The energy can then be used in the evening, at night or when solar production becomes insufficient. The result: the self-consumption rate increases and electricity purchases from the grid decrease.
Physical storage can be relevant for a family that is away during the day but present in the evening. It is also often preferred by businesses or local authorities in contexts of very high energy consumption or even where there is no electrical grid, particularly on isolated sites. A physical battery can also provide backup power in the event of a grid outage.
However, physical storage remains an investment in its own right. Its relevance depends on several criteria: usable capacity, charging and discharging power, efficiency, warranty, number of cycles, etc. A battery that is too large will remain half empty for much of the year, while a battery that is too small will quickly become saturated and will not be able to absorb all available surplus.
2. Virtual batteries: flexibility without equipment
With a virtual battery, electricity is not physically stored on site. Surplus electricity is injected into the grid and then recorded as energy credit with an operator. When the panels no longer produce enough, you recover the equivalent of the energy previously injected, according to the terms of your contract. Its main advantage is flexibility: no bulky equipment to install, no capacity limited by the size of an accumulator, and the possibility of carrying over summer production to less sunny months.
This solution may suit households that produce a lot during the day but mainly consume in the evening, or that are regularly away during periods of high production.
However, several points require careful consideration. Since the energy is not actually stored on site, a virtual battery cannot power the home in the event of a grid outage. The service also generally involves a subscription, management fees and sometimes grid-use costs or taxes when the electricity is recovered.
3. Collective self-consumption: towards an even more responsible model
Collective self-consumption consists of locally sharing solar electricity production between several nearby consumers. The panels can be installed on a condominium, a municipal building, a business or parking canopies. The production is then distributed among the participants according to predefined allocation keys. The value of this model lies in the complementarity of uses. When one building consumes little at a given time, its production can be allocated to another participant with greater needs.
A company can therefore share its production between several neighbouring sites. A local authority can supply electricity to a school, a gymnasium and offices. A condominium can distribute energy between common areas and participating residents.
However, organising collective self-consumption is more complex than individual self-consumption. It requires appointing an Organising Legal Entity, identifying the participants, setting the allocation rules, liaising with the grid operator and anticipating consumers joining or leaving the scheme.
Which model for which profile?
The right choice always starts with usage, not technology. A few guidelines:
- Are you often at home during the day? You can achieve a good self-consumption rate without a battery, especially by scheduling your equipment.
- Does your family return home in the late afternoon? Physical or virtual storage can make it possible to shift the use of production to the evening.
- Do you have an electric vehicle? It can absorb a significant share of the surplus, provided charging is scheduled or managed during sunny hours.
- Do you run a business that operates during the day? You will generally be able to directly consume a large share of your production. If activity continues in the evening, physical storage can be considered.
- Do you have a large roof but low consumption? Collective self-consumption with neighbouring buildings or companies may be a relevant solution.
Good to know: the Var and the Alpes-Maritimes benefit from particularly favourable conditions for solar production. But strong sunshine does not, by itself, guarantee that a project will be profitable. An oversized installation will generate a lot of low-value surplus. A poorly sized battery will unnecessarily increase the investment. A virtual battery offer may lose its appeal if its fees are too high. A collective operation will become complex if the participants and their needs have been poorly defined. In other words, everything depends on sizing and on matching the solution to actual usage.
The fall in EDF OA tariffs and the end of the self-consumption premium do not mark the end of photovoltaics. They simply turn the page on a model based on aid and resale. The new 2026 model is more practical: producing locally, consuming intelligently and choosing the solution that best values energy according to actual usage.
Still wondering which economic model best suits your home or business? Request a free, personalised and no-obligation feasibility and profitability study.
