Make money with your solar installation: sell it to EDF

EDF buys electricity from many individuals. Income must be declared, but it is exempt from taxes if the power is less than three kilowatt-peak. In this article we explain how it works.

Essential data

Unit used for photovoltaic solar, the kilowatt-peak (Wp) is a unit of measurement used to express the quantity of energy produced by solar installations. It represents the power supplied under optimal conditions, i.e. under standard sunshine of 1,000 W/m2 at 25°C.

Additional conditions include that the installation cannot be connected to the network in more than two places, and that it must be managed by you as an individual, not a company. Despite everything, the amounts must be declared.

So you can do it:

• either electronically, using box 5NN or one of the associated boxes on the main online declaration,
• or manually, using form 2042C PRO.

If the power is greater than 3 kWp, the electricity sold is taxable and must be declared on form 2042c PRO either in one of boxes 5NO, etc. to benefit from a 71% reduction.

On the other hand, if the power is less than 3 kWp, then the electricity sold must not be declared. Only the remaining 29% of your income will be subject to tax, and social costs will be deducted from this same amount.

You also have the option of reporting your actual income minus your expenses; however, you will either need to hire an accountant to prepare your accounts or have your own accounts audited by an official unit called an approved management center.

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Financial incentives for solar panels

Since January 1, 2014, there are no longer any tax credits for the installation of photovoltaic solar panels. These credits were previously available. Despite this, there are incentives in France, as in many other countries, for owners to sell electricity back to the grid at advantageous prices.

This therefore means that it makes more sense to use electricity from the network for your own supply, and to resell the electricity produced by your solar panels to EDF. The EDF purchase price, on the other hand, has continued to fall in recent years.

To note : The price currently paid by EDF for new installations differs depending on whether or not you sell all of the electricity you create to EDF. If you only sell part of it, the payment is lower.

Sell ​​it all

If you sell all the electricity that your installation produces, the price varies depending on the power of the installation:

• At 3 kW, the price rises to 17.90 cents per kWh.
• From 3 kW to 9 kW, the price drops to 15.20 cents per kWh.

These rates are subject to quarterly reviews, which often result in rate reductions.
However, if you enter into a contract with EDF, they are obliged to buy at the price set in the contract for a period of 20 years, and this price is linked to inflation. (EDF Purchase Obligation).

Sell ​​the surplus

If you choose to consume all the electricity you create and only sell the surplus to EDF, the current buy-back price for an installation ranging from 3kWp to 9kWp is ten cents per kWh.

Additionally, individuals who only sell excess assets must pay an annual investment premium. For an installation that produces:

• 3 kWp, the premium is €380; this represents a total payment of €1,140 paid over a period of 5 years (€228 per year).
• Between 3 and 9 kWp, the premium is €280, for a total amount of €1,680.

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