Collective self-consumption in France: new incentives and numerous projects 🇫🇷

Collective self-consumption: a revolution in the making?

Faced with the challenges of climate change and rising energy prices, the question arises: how can we produce and consume clean, local and economical energy? Collective self-consumption could well be the answer. This concept, which enables several consumers to share locally-generated electricity, is gaining ground in France and Europe. But what are the keys to its success? Can it really transform the way we consume energy? 💡

With new incentives such as the excise duty exemption in France for projects under 1 MWp, collective self-consumption is entering a new phase. Let's see how this model can drive change, and what inspiring examples in Europe are showing us the way.

An attractive incentive model

The excise tax exemption recently introduced in France is a major step forward. It reduces costs by up to €33.7/MWh for collective self-consumption projects. In practical terms, this means that every kilowatt-hour produced and consumed locally becomes more competitive. This measure is a clear recognition of the importance of these initiatives for a successful energy transition. 🚀

In France, the development of collective self-consumption takes many forms. According to the latest data from ENEDIS, nearly 700 collective self-consumption operations are active in France, representing more than 8,300 participants. The momentum is strong, with growth of over 100% in the number of operations over the past year.

Collective self-consumption (abbreviated ACC) enables one or more producers to share the energy produced with several consumers from different sites (homes, buildings, infrastructures, etc.).

Part of the energy consumed by consumers is supplied by the grid, the other part by the producer(s).

Finally, as with individual self-consumption, if production exceeds consumption, the remaining surplus is fed into the grid.

Good to know: surplus electricity can be fed into the grid and sold under the solarfeed-in tariff. To do this, each producer must sign a purchase contract with EDF Obligation d'Achats. If the connected capacity exceeds 500 kWp, producers will have to go through a more complex procedure.

Geographical and regulatory criteria

There are three key prerequisites for implementing a collective self-consumption project.

1. Geographic criteria : 

A legal decree sets the maximum distance between the two furthest participants in a collective self-consumption project (consumer or producer) at 2 km.

It is possible to obtain a derogation on application to the Ministry in charge of Energy to extend the scope of your self-consumption project: 

• 20 km in rural areas
• 10km in suburban areas. 

Good to know: to find out whether you live in a rural or suburban area, consult the communal density grid drawn up by INSEE.

2. Technical criteria : 

All participants in the collective self-consumption operation must be connected to the electricity grid and hold an energy supply contract.

Yes, you need to be able to continue being supplied if consumption exceeds energy production!

For simplicity's sake, we recommend that all participants be connected to the network ofa single operator: Enedis or a local distribution company (ELD).

3. Power criterion : 

The maximum power of a collective self-consumption project may not exceed 3 Megawatt-peak (MWp).

This would generate enough electricity to supply around 4,000 inhabitants for a whole year!

The projects fall into two main categories:

• Asset-based projects: undertaken by social landlords, condominium owners or local authorities, these involve buildings belonging to the same owner. For example, a social landlord may equip several of its buildings with solar panels to enable its tenants to benefit from cheaper electricity.
• Territorial operations: These involve various players (individuals, companies, local authorities) within a defined geographical perimeter. Projects can include schools, shops, housing and public buildings.

With regard to the players who can play the role of Organizing Legal Person (OTP), several options are possible:

• Local authorities
• Mixed economy companies
• The associations
• Citizen cooperatives
• Companies specializing in energy

The PMO is responsible for distributing the electricity generated among the participants and for the administrative management of the project. This includes defining the energy distribution keys and monitoring consumption.

French projects vary widely in terms of configuration, from a few dozen participants to several hundred. Installed capacity generally ranges from 36 kWp to 1 MWp, with an average of around 100 kWp for residential projects.

But this type of financial support is not unique. In Austria, for example, subsidies are offered to encourage local communities to invest in shared photovoltaic installations. As a result, a growing number of villages and urban districts are turning to collective self-consumption to reduce their energy bills and lower their carbon footprint.

Concrete examples from across Europe

Take the Netherlands, for example. In some municipalities, residents band together to finance and install solar panels on the roofs of schools and public buildings. The energy produced is then redistributed among participants according to their consumption. This model, known as a "solar cooperative", is growing rapidly thanks to local incentive policies and strong citizen participation.

In Spain, too, significant progress has been made. Since the abolition of the "sun tax" in 2019, collective self-consumption has developed apace. In Barcelona, a pilot project has enabled several buildings in the same district to share the electricity generated by solar panels installed on a common roof. Residents benefit from lower-cost energy while strengthening community ties.

These examples show that, when ambitious public policies meet citizen commitment, collective self-consumption becomes a powerful lever for creating sustainable energy models. 🌱

The challenges ahead

But it's not all plain sailing. Setting up collective self-consumption projects raises technical and organizational questions. How can energy be shared equitably? What digital tools should be used to monitor and distribute production in real time? These challenges call for innovative solutions.

In Germany, for example, digital platforms have been developed to manage the distribution of energy within communities. These tools enable transparent and efficient management, facilitating the adoption of collective self-consumption.

Towards more accessible, socially responsible energy

Beyond technical considerations, collective self-consumption is also a question of solidarity. It offers a unique opportunity to democratize access to clean, affordable energy. By involving citizens in local production and consumption, this model strengthens the social fabric while responding to environmental challenges.

And what do you think? Can this model really transform the way we produce and consume energy? Share your opinion, enrich the debate and be part of the change!