- If your solar installation is 3kWc or smaller, everything EDF pays you for your electricity is completely tax-free — no income tax, no social charges — whether you sell your surplus or sell everything you produce
- Above 3kWc, only 29% of what EDF pays you is actually taxable, thanks to a flat 71% allowance under the micro-BIC regime — most people end up paying far less than they expect
- If you hold an S1 certificate, the social charges on your taxable solar income drop from 18.6% to just a 7.5% solidarity levy
- You must declare this income on Form 2042 C PRO every year, even when it's completely exempt — skipping the declaration isn't a shortcut, it's an oversight the tax office can come back for
Whatever the size of your installation, the number that decides your tax bill isn't your income, and it isn't whether you sell your surplus or everything you produce. It's a single figure on your contract with EDF OA: the power rating of your installation, in kilowatt-peak (kWc).
If that number is 3 or under, you can stop worrying about tax categories — you owe nothing on any of it. If it's above 3kWc, the rest of this guide is for you.
For how worldwide income and French tax residency fit together more broadly, see our guide on how the French tax system works for UK expats.
Is Your Solar Income Tax-Free? The 3kWc Rule
Under Article 35 ter of the Code général des impôts, individuals selling electricity from a solar installation are exempt from income tax on that income — and because anything exempt from income tax is automatically exempt from social charges too, that means no CSG, no CRDS, and no solidarity levy either. Nothing to pay, full stop.
To qualify, your installation has to meet three conditions at the same time:
- Its power rating must be 3kWc or less, as shown on your contract with EDF OA or another approved buyer
- It must be connected to the public network at no more than two points
- It must not be tied to a professional activity — it has to be a private, personal setup
This is one of the most misunderstood parts of solar taxation: it makes no difference whether you're on autoconsommation avec vente du surplus (using some power yourself, selling what's left) or vente totale (selling everything you generate). The sale structure doesn't matter. Only the kWc figure does.
If your household has more than one installation, each one is assessed on its own power rating — they aren't added together. The tax office will also accept the exemption on up to two separate installations per household, provided each one is 3kWc or under.
What Happens Once You're Over 3kWc
Above 3kWc, the exemption stops applying and your solar income becomes taxable under micro-BIC — the simplified regime for bénéfices industriels et commerciaux (industrial and commercial profits), the same category French tax uses for things like furnished rental income.
The good news is that only a fraction of what you're paid actually gets taxed. The administration applies a flat 71% allowance automatically, meaning just 29% of your gross revenue from EDF counts as taxable income — with a minimum taxable floor of around €305.
Say your 6kWc installation earns you €1,200 a year from EDF OA. After the 71% allowance, only €348 is taxable. At an 11% marginal rate, that's roughly €38 of income tax — plus social charges, covered below. On €1,200 of income, the real tax bill often lands under €150.
This micro-BIC regime applies automatically as long as your total solar turnover stays under the standard micro-BIC ceiling (currently around €77,700 a year) — which covers the overwhelming majority of residential installations.
How to Declare Solar Income on Form 2042 C PRO
Both exempt and taxable solar income go through the same form: Form 2042 C PRO.
If you're under 3kWc and exempt: you still have to declare the income — just as exempt income, not as taxable income. It's reported in the exonerated income section of the form. The exact box (commonly one of 5NN, 5NO or 5NP, depending on which household member is declaring) can shift slightly year to year, so check the current form rather than relying on last year's box number.
If you're over 3kWc and taxable: your gross revenue from EDF OA goes in the non-professional BIC section of Form 2042 C PRO — the same section used for non-professional furnished rental income. The administration applies the 71% allowance automatically; you don't need to calculate or deduct anything yourself.
Keeping your paperwork organised across UK pension income, French solar income and everything in between is exactly the tedious bit that eats an afternoon every spring. Taxpert's filing assistant pulls your income sources together and tells you which section and box each one belongs in, so you're not hunting through old forms to check whether it was 5NN or 5NP last time.
If You Hold an S1 Certificate
This only matters if you're above the 3kWc threshold — below it, you owe nothing regardless of your S1 status.
Once your solar income is taxable, it falls into the same social-charges category as rental income and investment income: revenus du patrimoine. If you hold an S1 certificate — meaning you're covered for healthcare under an EU/EEA, UK or Swiss scheme rather than the French one — you're exempt from CSG and CRDS on this income under the same principle that already applies to your pension or investment income. You only pay the 7.5% solidarity levy, not the full rate.
Since 2026, that full rate has increased. A change under the loi de financement de la sécurité sociale for 2026 raised the standard rate on revenus du patrimoine from 17.2% to 18.6%. See the social charges by income type on the Taxpert reference data page → So on that €348 taxable portion from the 6kWc example above:
- Without an S1: social charges at 18.6% come to around €65
- With an S1: the solidarity levy at 7.5% comes to around €26 — a saving of roughly €39 a year on this income alone
It's not a huge sum on its own, but it's part of the same pattern that shows up across pension and investment income — if you have an S1, use it everywhere it applies, not just on your pension. For the full picture of how social charges work in France, including which income types are affected, see our overview guide.
Common Mistakes on Solar Panel Income
- Assuming the sale structure changes the tax treatment. Whether you sell your surplus or sell everything you generate makes no difference — only your installation's power rating decides whether you're taxed.
- Not declaring exempt income at all. Being under 3kWc means you owe nothing, but it doesn't mean you skip the declaration. The tax office can still ask questions if EDF OA's records show payments that never appear on your return.
- Assuming a home battery changes your regime. A battery only reduces how much electricity you end up selling — it has no effect on which tax rules apply. What matters is still the kWc rating on your contract.
- Missing the S1 reduction and paying the full rate by default. If you hold an S1 and don't flag it correctly, you can end up paying 18.6% instead of 7.5% on taxable solar income without realising it.
- Not checking the actual kWc figure on the contract. Some people estimate their installation size from panel count or rough specs. The number that matters is the one written on your EDF OA contract — check it directly rather than guessing.
Frequently Asked Questions
Do I have to pay tax on the money EDF pays me for my solar panels?
It depends entirely on your installation's power rating. If it's 3kWc or under, no — the income is exempt from both income tax and social charges under Article 35 ter CGI. Above 3kWc, yes — it's taxable under the micro-BIC regime, though only 29% of the revenue actually gets taxed.
My installation is 6kWc — how much tax will I actually pay?
On €1,200 of annual income from EDF OA, the 71% micro-BIC allowance brings the taxable amount down to €348. At an 11% marginal rate, that's around €38 in income tax, plus social charges of roughly €65 (or €26 with an S1) — a real total tax bill well under €150 on €1,200 of income.
Do I still need to declare solar income if it's exempt?
Yes. Being exempt from tax under Article 35 ter doesn't remove the requirement to declare the income on Form 2042 C PRO. It's reported in the exonerated income section so the tax office has a record of the activity.
Does having an S1 reduce the tax on my solar panel income?
Only if your installation is above 3kWc. Below that threshold, the income is fully exempt regardless of S1 status. Above it, an S1 reduces your social charges from 18.6% to a 7.5% solidarity levy, the same way it does for pension and investment income.
Does a home battery change how my solar income is taxed?
No. A battery changes how much electricity you use yourself versus sell to EDF OA, which can reduce your revenue — but the tax rules themselves depend only on your installation's kWc rating, not on whether you have storage.
Is autoconsommation with sale of surplus taxed differently from selling all my electricity?
No. Both are treated identically for tax purposes. What determines whether you're exempt or taxable is solely your installation's power rating — not how you've structured the sale with EDF OA.