The weighted average price dropped 24.5% from the previous 2025 round, while small rooftop solar averaged €75/MWh, down 15.5%; the energy minister says the decline reflects the sector's improved competitiveness and reaffirms plans to reduce subsidies.
PARIS - France has awarded 930 MW of solar energy capacity from ground-mounted solar systems to 125 projects via its latest competitive tender. The weighted average price amounted to €60 per megawatt-hour, an impressive drop that proves the competitiveness of solar energy production today. The outcome indicates a reduction of around 24.5% as compared to the previous round conducted in 2025, when the average price of €79.48/MWh was reported. The competitive tender included rooftop solar systems with capacities from 100 kW to 500 kW where the average price amounted to €75/MWh, which is lower compared to the previous round by 15.5%.
The statistics, made available due to the French renewable energy auction initiative, represent one of the most enormous cost reductions in the French solar industry for quite some time. It implies that project developers can now offer electricity generated through solar technology at rates that are almost similar to, or less than, wholesale market prices. The government has long used auctions to allocate support for renewables, and the latest results will likely strengthen its argument that solar can expand with less public financial support.
According to the energy minister of France, the fall in prices is a demonstration of "the increased competitiveness of the sector," and he also indicated that the government wants to reduce the financial assistance currently provided to the industry. This shows that Paris wants to take the solar industry from an over-reliant technology to one that runs more on the market, though it still aims to develop capacity in the area. Historically, France has been slow to adopt solar energy compared to other countries in Europe due to its many nuclear power plants, complicated permitting conditions, and limited availability of land. However, in recent years, the administration has been trying to boost its energy capacity through multi-year energy programs and holds regular tenders.
The segment of the market for ground-based solar systems stays key in the strategy. Solar farms are able to produce lower amount of electricity at lower costs compared to smaller and distributed installations. With the average price of €60/MWh, people and businesses will probably welcome it in case they are worried about their energy costs. However, the low price creates both stress for developers, requiring them to make financing cheap, construction of solar plants efficient, and connection to grid reliable.
The small rooftop solar segment, covering systems from 100 kW to 500 kW, also saw a notable decline, with the average price falling to €75/MWh, down 15.5%. This segment is important for France's broader energy transition because it can be deployed on commercial and industrial buildings, reduces pressure on land, and supports local grid resilience. Lower prices could encourage more businesses and public institutions to install solar, although installers may face tighter margins. Industry groups have warned that very low prices must be balanced against the need for stable returns, skilled labor and high-quality installation.
The minister's renewed emphasis on reducing subsidies comes as France and other European governments face fiscal constraints and political pressure to lower energy costs. Solar auctions are designed to reveal the true cost of new capacity, and falling prices allow governments to cut support while still meeting deployment goals. However, the transition away from subsidies must be managed carefully. If prices fall too far or too fast, some projects may be delayed or cancelled, particularly those facing permitting delays or grid connection bottlenecks.
France's latest tender results are also likely to be watched closely across Europe. Solar auction prices have been falling in several markets, driven by cheaper modules, larger project sizes and intense competition among developers. France's €60/MWh average is competitive with many recent European ground-mounted solar awards, and it may encourage other governments to tighten auction budgets or redesign support schemes. At the same time, the French case illustrates a broader challenge: solar is becoming cheaper, but deploying it at scale still depends on grid investment, land-use planning and administrative efficiency.
In the upcoming months, the government is likely to go on conducting regular tenders as part of its renewable energy program. The forthcoming rounds of bids will reveal whether the price decrease was merely a one-off phenomenon or marks the beginning of a consistent trend. The minister's point is understood – the sector's better efficiency is being used as an explanation for the limited subsidy involvement, and France is planning to depend more on market means to achieve its solar objectives. Developers, investors and consumers will wait for the confirmation of whether the given strategy can be maintained while ensuring cost-effectiveness and affordability of the projects.
