Sales volumes for installations under 3 kW dropped 45.4% year-on-year to 153,250 kW in 2025, while the 3 kW to 9 kW segment fell 17.6%, from 685,000 kW to 564,100 kW, according to Observ’ER’s annual report on small-scale solar applications. The decline follows eight consecutive years of growth from 2017 to 2024, during which the market grew by more than 43% annually on average — marking the sector’s first severe slowdown since 2011.

Observ’ER attributed the downturn to regulatory changes introduced in 2025. Since March of that year, installations between 0 kWp and 9 kWp have no longer been eligible to sell their full solar output to utility EDF OA under the obligation d’achat scheme, and can now sell only their surplus, unconsumed electricity. The feed-in tariff for that surplus also collapsed, falling from €0.12 to €0.01 per kWh. Self-consumption incentives were also significantly reduced.

Observ’ER said the uncertain economic climate in 2025 further weighed on household investment, which accounts for the majority of small-scale solar installations.

Average system prices also fell in 2025, dropping 7.3% for a 3 kW installation to an estimated €2.15 per watt excluding tax, including installation but not storage equipment. Equipment prices, particularly for modules and inverters, fell 11.7%, while labor costs rose 5%, driven mainly by wage increases to offset recent inflation.

From pv magazine France