Many factors have contributed to the rise in electricity prices in France. The war in Ukraine is one of them. One effective solution is to install solar panels.
Rising electricity prices in France: solar panels as a smart alternative
Despite government subsidies, electricity bills continue to weigh heavily on the budgets of French households. This situation, partly linked to national factors, is also the result of various international events such as covid 19 and the war in Ukraine.
The war in Ukraine has disrupted the global energy market. It has had an indirect impact on electricity tariffs in France. How long will this uptrend last? It is currently impossible to predict. However, despite this rise in rates, there's only one solution: installing solar panels.
Soaring electricity prices in France
Depending on the amount of energy resold and the current feed-in tariff, this source of income can make a significant contribution to your savings. Electricity bills have been on the rise, with the highest increase of 15% since the beginning of the year. Despite regulated tariffs, costs remain considerable for French households.
In the case of a 70m2 dwelling with an electric heating system, annual expenditure climbed from 2,179 euros in August 2021 to 2,891 euros two years later, an increase of around 33%.
For a home of the same size with no electric heating and a basic tariff, bills rose from 367 euros in August 2021 to 484 euros in August 2023, marking a 32% increase.
The origins of rising tariffs in Europe
The main reason for the rise in electricity rates is the sharp increase in the price of gas on the international market due to the war in Ukraine. It is essential to note that Moscow occupies a dominant position on the European gas market, accounting for 45% of imports. In response to the war, Russia threatened to suspend gas deliveries to European countries. But how does this affect the cost of electricity?
Power plants in Europe, including those in France, use gas to generate electricity, and when the price of gas rises, so does the cost of producing electricity. So, to be profitable, the companies running these plants have had to raise electricity prices. In addition to the war in Ukraine, several other factors have exacerbated tariffs. These include the economic recovery following the COVID-19 pandemic, the shutdown of several reactors due to corrosion problems, and the limited availability of France's nuclear fleet.
A government precautionary measure
This problem has not only affected France, but also other European countries. In France, the introduction of a tariff shield in February 2022 has already helped keep increases under control. And faced with the prospect of a further rate hike, the government has decided to maintain it until 2025.
Whatever the case, bills remain painful for French households, including the 20 million or so who subscribe to EDF's regulated or "blue tariff". The most cost-effective solution is to turn to renewable energy sources such as solar panels.
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