The European Commission has approved a $6.7bn (€5.7bn) French aid scheme to support renewable power generation from small solar installations located on buildings.

Approved under European Union (EU) state aid rules, the scheme will help France to add approximately 3,700MW of additional capacity in the solar renewable energy segment.

Additionally, the move will help France to achieve its 2030 target of producing 33% of its energy needs from renewable sources.

It will also support European objective of achieving climate neutrality by 2050, without unduly distorting competition.

The aid was approved after assessing the European Commission’s 2014 guidelines on state aid for environmental protection and energy.

European Commission executive vice-president in charge of competition policy Margrethe Vestager said: “This $6.7bn (€5.7bn) support scheme will further help France in its transition to an environmentally sustainable energy supply.

“The measure, which will support production of renewable energy from small solar installations, complements another $35bn (€30.5bn) French scheme to support production of electricity from renewable energy sources that the Commission has approved last month.

“It will further stimulate the development of renewable energy sources, while ensuring a level playing field in the French energy market.”

France notified the European Commission of its intent to launch a scheme that supports the production of electricity from solar installations.

The scheme, which will run until 2026, will be open to operators of small photovoltaic (PV) installations located on buildings with a capacity of up to 500kW.

Rooftop solar installations will also be backed in the form of a feed-in tariff for a period of 20 years.

Last month, the European Commission approved a scheme put forward by France to support the production of electricity from renewable energy sources.