A twist to installing a solar system

[lmanpunk]

I am trying to make my home more efficient before the solar plunge. My current central air and heater system is over 22 years old.
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I called an HVAC company that also does solar systems. They are highly rated on multiple review sites.

As we were going through pricing, I mentioned I have been considering a solar system. He ran the numbers based on my usage. The solar system with 16 - LG 300 Panels and a solaredge 5000 inverter $16800 ($3.50 per watt) + $1500 to upgrade my electrical box to code. This is before the 30% Tax break
Rebate

The twist is he mentioned put the cost of the AC / Heater / new duct work to the cost of the solar system, so I can get the 30%. The write up would have the AC / Heater / Duct work in there as getting them free with purchase of the solar system.

I am seriously considering this path. I will need to get my roof inspected. Has anyone else done something like this?

Thanks

[J.P.M.]

I am trying to make my home more efficient before the solar plunge. My current central air and heater system is over 22 years old.
.
I called an HVAC company that also does solar systems. They are highly rated on multiple review sites.

As we were going through pricing, I mentioned I have been considering a solar system. He ran the numbers based on my usage. The solar system with 16 - LG 300 Panels and a solaredge 5000 inverter $16800 ($3.50 per watt) + $1500 to upgrade my electrical box to code. This is before the 30% Tax break
Rebate

The twist is he mentioned put the cost of the AC / Heater / new duct work to the cost of the solar system, so I can get the 30%. The write up would have the AC / Heater / Duct work in there as getting them free with purchase of the solar system.

I am seriously considering this path. I will need to get my roof inspected. Has anyone else done something like this?

Thanks

I'd be real, real careful on that one. Pricing on the system sounds not bad. However, depending on where you live, there may be some state/local advantages or breaks for other energy improvements like HVAC upgrades, but I'm pretty sure the IRS frowns on schemes such as that vendor seems to be implying. I'd strongly urge that you check w/ your tax advisor.

[inetdog]

"I am not a tax attorney!" but is sure sounds like fraud to me. If you ever got audited, I am sure you would be in deep trouble.

The tax code is very clear and specific on what additional work can and cannot be included in the cost basis of the system.

[thejq]

I'm surprised that the company even give you this kind of ideas. If you read the IRS rule http://www.gpo.gov/fdsys/pkg/USCODE-...rtA-sec25D.pdf not even roof repair can be included. Even if you CPA tells you ok, I'd be very careful. If you're audited and found guilty, guess who pays the fine? not your CPA or anyone on this forum, I can assure you.

[Bikerscum]

Sounds like an excellent thing not to be admitting on a public forum.

[lmanpunk]

Sounds like an excellent thing not to be admitting on a public forum.

Thank you for your insight.

[lmanpunk]

I'd be real, real careful on that one. Pricing on the system sounds not bad. However, depending on where you live, there may be some state/local advantages or breaks for other energy improvements like HVAC upgrades, but I'm pretty sure the IRS frowns on schemes such as that vendor seems to be implying. I'd strongly urge that you check w/ your tax advisor.

.

I would not move forward without double checking. I definitely raised a concern with me, which is one reason I brought up the question.

Thank You

[prhamilton]

You guys are paranoid. Its not like the government is tapping into internet providers siphoning off large parts of the internet and storing everything in a huge datacenter in Virginia.

If they want to comp you a new HVAC system it sounds good to me but then I was always the kid that would hop in a van for a piece of candy...

[russ]

You guys are paranoid. Its not like the government is tapping into internet providers siphoning off large parts of the internet and storing everything in a huge datacenter in Virginia.

If they want to comp you a new HVAC system it sounds good to me but then I was always the kid that would hop in a van for a piece of candy...

It is part of the "don't convict yourself" concept. There is a reward for catching someone fudging on taxes I believe. It would be possible for someone to turn them in - user names are not a good disguise.

[russ]

A few years back a major heat pump company was pushing this but that went away. They probably got slapped down rather hard.

[lmanpunk]

A few years back a major heat pump company was pushing this but that went away. They probably got slapped down rather hard.

Thank you, the more I thought about it today, the more I would rather keep it separated. The risk is not worth ~$2000 in savings.

I may be able to get even a smaller solar system once I get a baseline from a new AC / Heater.

[russ]

Seems like it was Lennox now that I try to remember

[J.P.M.]

Thank you, the more I thought about it today, the more I would rather keep it separated. The risk is not worth ~$2000 in savings.

I may be able to get even a smaller solar system once I get a baseline from a new AC / Heater.

Head's up thinking.

Properly sized and more efficient HVAC will almost certainly reduce usage. Lower usage will lower solar electric size requirements.
One minor drawback: Smaller solar electric systems sometimes cost a BIT more/Watt - fewer $$ out the door for solar overall, but a bit more /Watt for a smaller system.

One other thought : Depending on your tax situation, another consideration might be whether or not to hold off on solar until you can measure actual reductions from HVAC changeout so as to get a SWAG on how new HVAC will affect overall annual electric load and solar size. That means perhaps 1 less year to chew up the fed. tax credit which expires 12/31/2016 - 2 tax years instead of 3. Sometimes the usual and sensible wisdom of waiting to see effects of improvements must be weighed against the consequences of waiting, in this case, perhaps not being able to take full advantage of the tax credit.

[LucMan]

I am trying to make my home more efficient before the solar plunge. My current central air and heater system is over 22 years old.
.
I called an HVAC company that also does solar systems. They are highly rated on multiple review sites.

As we were going through pricing, I mentioned I have been considering a solar system. He ran the numbers based on my usage. The solar system with 16 - LG 300 Panels and a solaredge 5000 inverter $16800 ($3.50 per watt) + $1500 to upgrade my electrical box to code. This is before the 30% Tax break
Rebate

The twist is he mentioned put the cost of the AC / Heater / new duct work to the cost of the solar system, so I can get the 30%. The write up would have the AC / Heater / Duct work in there as getting them free with purchase of the solar system.

I am seriously considering this path. I will need to get my roof inspected. Has anyone else done something like this?

Thanks

What the HVAC contractor advised you is illegal. Solar tax credits are at 30%, HVAC tax credits are 10% with a max deduction of $500.
I would think real hard about hiring this contractor. If he is willing to bill contrary to the law, he will have no problem screwing you any way he can.
Beware of dishonest businesses.

[Sunking]

What the HVAC contractor advised you is illegal. Solar tax credits are at 30%, HVAC tax credits are 10% with a max deduction of $500.
I would think real hard about hiring this contractor. If he is willing to bill contrary to the law, he will have no problem screwing you any way he can.
Beware of dishonest businesses.

I agree the contractor is unethical and I would not use him. If the IRS audits and catches you, it is you who will be paying the fines and penalties with interest and possible jail time in fed pen.