Is our income from selling solar power taxable?
How to declare it correctly, especially for installations under 3kWc
I sell electricity from our home’s solar panels back to EDF. Will the income from this be taxable and, if so, how should it be declared?
People who sell their surplus electricity to EDF usually take a reading from their meter once a year at the anniversary date of the contract to establish a facture (bill) via their online espace producteur. A payment is then made for the previous 12 months.
It is the income received in the relevant year that is declarable, ie. a payment from EDF in 2025 for this year's declaration.
This income is declarable but it is not taxable if the power is under 3kWc – this refers to kilowatt-crête, a figure used to indicate the power of photovoltaic installations. It indicates the maximum electric power under usual circumstances.
Additional requirements are that the installation should not be connected to the grid at more than two points and should be operated by an individual as opposed to being part of a business.
The amounts in this case are declared in box 5NN on the main online declaration, or on paper form 2042C PRO.
If power is greater than 3kWc, then the electricity sold is taxable and needs to be declared either: 1: In one of boxes 5NO etc on the 2042C PRO to benefit from a 71% allowance. You will only be taxed on the remaining 29% and social charges will only be levied on this same amount or 2: You can declare the actual income less costs, but this generally requires an accountant to prepare the figures.
The 5NN box is called revenus nets exonérés and comes under revenus industriels et commerciaux non-professionnels. If you need this and it does not appear in your declaration, select it from the list in the section for choice of rubriques.
There should be no complication with completing this box or related boxes 5ON and 5PN for declaring income for the second member of a couple or a dependent who lives with you. It is, however, part of a section with other kinds of ‘micro-Bic’ income, so you can ignore boxes with other labels.
As mentioned, if power is greater than 3kWc, the electricity sold is taxable and is declared differently.