Bucking the trend set by other European government, the French government has announced this week that a 10 per cent premium will be added to rates paid through its feed-in tariff scheme for solar power generation.

The premium applies when 60 per cent of the solar PV (photovoltaic) rig by value is manufactured in the European Union. The announcement comes a year after the French solar industry claimed domestic PV modules were not viable, as Chinese imports were cheaper and more readily available.

The scheme aims to boost the European solar industry, which has faced knocks in the form of cuts to subsidies in Britain and Germany, according to French ministers. The announcement was made following French energy giant EDF’s purchase of Photowatt International SAS, another French company.

EDF said this would consolidate French expertise in solar energy, and ensure the industry has a bright future. Photowatt is the sole manufacturer of PV cells in France.

Following the announcement of the new subsidy rate, president Nicolas Sarkozy stated, "France is committed very strongly in favour of solar energy and strengthening the industrial sector associated with it."

The new subsidy rules will come into force from April.

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