Do we need to pay tax on EDF solar power sale in France?

Reader question: We have bought a property which we plan to use as a holiday home for two months a year. The roof has solar panels installed and we have a contract with EDF Solar to sell the power generated back. We invoiced EDF €1,127 this June for 12 months of generated power. Do we need to submit a tax return given we earned a small income in France from the solar panels?

Assuming you have a modest domestic installation of no more than 3kWc, then this kind of income usually has to be declared for information to the tax office but it is not taxable in France (it is also free from the French social charges).

Additional requirements for this 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.

People who declare in France are asked to enter such income on the main online declaration or on paper form 2042C PRO, at box 5NN for revenus nets exonérés in the section for revenus industriels et commerciaux no-professionnels.

The issue therefore arises as to whether you as a non-resident have to complete a French tax return simply to declare this income.

We asked the central tax authorities, the DGFiP, who replied that as long as the three conditions are met, non-residents are not obliged to declare this income. 

This makes good practical sense as the declaration made by residents is essentially so that the tax office has the full picture of the declarant’s affairs.

We also note that any tax office penalties for late or non-declaration of incomes are calculated as a percentage of tax actually due. 

If your installation is larger than 3kWc, the answer is simple: yes, the income has to be declared to the non-residents’ tax service in spring 2027 for sums paid to you in 2026. 

If doing so for the first time you can do this by paper, however it is recommended to get set up as soon as possible with an account at the government Impots site.