Is our income from selling home solar panel power taxable in France?

Reader question: I have set up to sell electricity from our home’s solar panels back to EDF. Will the income from this be taxable and, if so, how would it be declared? R.B.

Yes, the income is declarable but is not taxable if the power is under 3KWc – this refers to kilowatt-crête, a figure used to indicate the power of output from photovoltaic installations.

It indicates the maximum electric power under usual circumstances. Additional requirements are that the installation should not be linked to the grid at more than two points, and it should be run by yourself as an individual, as opposed to being part of the accounts of a business.

The amounts still have to be declared in this case, and they go in the box 5NN or related boxes on the main online declaration, or on paper on the 2042C PRO form.

If power is greater than 3KWc, then the electricity sold is taxable and needs to be declared either 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 will have the social charges levied on this same amount.

Alternatively, you can declare the real income less costs, but this requires an accountant to prepare accounts or to have one’s own accounts verified by an official unit called a centre de gestion agréé or otherwise have the taxable income increased by 10% for the tax calculations.

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