Could someone clarify this information on the Solar Tax Credit?

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • Ampster
    Solar Fanatic
    • Jun 2017
    • 3658

    #16
    Originally posted by PugPower
    From my own experience I have found that some solar peddlers are intentionally misleading or leaving out pertinent information in regards to the fed. solar tax credit in order to get the sale or make the deal appear more favorable.
    Not to mention that because I am on so many forums discussing solar panels and batteries, every time I watch a YT video I get those adds for free solar.
    .
    9 kW solar, 42kWh LFP storage. EV owner since 2012

    Comment

    • J.P.M.
      Solar Fanatic
      • Aug 2013
      • 15038

      #17
      Originally posted by PugPower
      From my own experience I have found that some solar peddlers are intentionally misleading or leaving out pertinent information in regards to the fed. solar tax credit in order to get the sale or make the deal appear more favorable.
      They wouldn't ever possibly do that, WOULD THEY ??

      Comment

      • DanS26
        Solar Fanatic
        • Dec 2011
        • 991

        #18
        If you have a Regular IRA......then transfer enough to a Roth IRA or newly created Roth IRA which will generate a tax liability. This tax liability can then be offset by the solar credit. Any CPA or tax accountant can do the necessary calcs........

        Comment

        • JWB
          Junior Member
          • May 2020
          • 15

          #19
          Our current bid is from SolarMax. The rep insists that the tax credit can be rolled over for a period of up to 5 years. In fact, one of their web pages has information pertaining to that.. and it's dated March of this year.

          www.solarmaxtech.com/solar-t...dit/riverside/

          I still plan on talking to a tax advisor.

          Comment

          • PugPower
            Solar Fanatic
            • Oct 2019
            • 126

            #20
            From TurboTax for tax year 2019: "However, it is not yet clear whether you can carry unused credits to years after the solar credit expires."
            https://turbotax.intuit.com/tax-tips...ergy/L7s9ZiB4D

            Here is the same thing stated on one of SolarMax's own pages: "However, it is not yet clear whether you can carry an unused solar tax credit to years after the solar credit expires in 2022."
            https://www.solarmaxtech.com/offers/...s%20in%202022.

            Definitely check with a CPA before assuming anything the installer says is true when it come to taxes.
            Last edited by PugPower; 06-10-2020, 12:59 AM.

            Comment

            • PugPower
              Solar Fanatic
              • Oct 2019
              • 126

              #21
              I'm not trying to be political just giving my opinion based on observances:

              If Trump gets re-elected the chances are slim to none that the fed. solar credit will be renewed.

              Comment

              • SunEagle
                Super Moderator
                • Oct 2012
                • 15168

                #22
                Originally posted by PugPower
                I'm not trying to be political just giving my opinion based on observances:

                If Trump gets re-elected the chances are slim to none that the fed. solar credit will be renewed.
                Off Topic but I think if the other side gets in the solar credit will be the least of my money problems.

                Comment

                • PugPower
                  Solar Fanatic
                  • Oct 2019
                  • 126

                  #23
                  JWB brought up a good point earlier..."I've heard that once the tax credits disappear here in 2022, the Solar industry will probably adjust their rates to remain viable and attract new customers."

                  If the tax credit disappears it will definitely have a negative effect on the solar industry. As far as pricing being adjusted down to compensate, I guess that will depend on a number of factors such as the price of hardware, labor costs, etc. The price of solar equipment has decreased over time as new competitors and new manufacturing methods entered the market. I don't believe it has deceased greatly when compared to a year ago, but over a period of years it has definitely gone down. I have no idea what the labor costs are for a solar installation. I assume someone who is involved in the business could comment on the general mark-up and profit involved in a typical solar installation. If I didn't already have solar I would be more concerned with future changes to the net-metering structure. IMO If net-metering were eliminated, like what happened in Hawaii, that would have larger effect on the general solar industry than the loss of the tax credit.

                  Comment

                  • Ampster
                    Solar Fanatic
                    • Jun 2017
                    • 3658

                    #24
                    Customer acquisition expense is a big factor and I don't know if that is fixed or variable. What happened in Hawaii is average system size increased because batteries were added to make up for lack of net metering. That also reduced the approval bottleneck with the utilities since only a building permit was required. There are so many local factors and the only common one in the USA is the Federal Tax credit. I think in some markets even without the tax credit solar is competitive and doesn't need a subsidy to save money for the consumer.
                    9 kW solar, 42kWh LFP storage. EV owner since 2012

                    Comment

                    • PugPower
                      Solar Fanatic
                      • Oct 2019
                      • 126

                      #25
                      Adding batteries would increase system costs significantly and thus make solar less attractive for consumers like me who focus on the "break-even" time.

                      Comment

                      • azdave
                        Moderator
                        • Oct 2014
                        • 797

                        #26
                        Originally posted by JWB
                        Our current bid is from SolarMax. The rep insists that the tax credit can be rolled over for a period of up to 5 years.
                        I don't see any information backing up that claimed 5-year period except on their own site. I see dozens of tax sites and solar sellers explaining you cannot roll over the credit past the year the residential solar tax credit goes away which is 2021 (but ongoing for commercial). Maybe if you are a commercial installation you could take 5-years to use the credit but I would not count on that for residential past the 2021 tax year.

                        Dave W. Gilbert AZ
                        6.63kW grid-tie owner

                        Comment

                        • Ampster
                          Solar Fanatic
                          • Jun 2017
                          • 3658

                          #27
                          Originally posted by PugPower
                          Adding batteries would increase system costs significantly and thus make solar less attractive for consumers like me who focus on the "break-even" time.
                          In Hawaii with no NEM agreements the only way to get a decent break even was to add batteries to solar. Remember the cost of power over there is astronomical.

                          Same think is happening with solar farms in California. . More of them are being constructed with batteries because the returns are better if you can offer a power agreement for times when the sun isn't shining. .
                          9 kW solar, 42kWh LFP storage. EV owner since 2012

                          Comment

                          • bcroe
                            Solar Fanatic
                            • Jan 2012
                            • 5213

                            #28
                            I wonder just how electric use breaks down in Hawaii? If largely air conditioning, it would be a
                            prime market for direct solar powered heat pumps, set to use little to no line power. Bruce Roe

                            Comment

                            • Ampster
                              Solar Fanatic
                              • Jun 2017
                              • 3658

                              #29
                              Originally posted by bcroe
                              I wonder just how electric use breaks down in Hawaii? If largely air conditioning, it would be a
                              prime market for direct solar powered heat pumps, set to use little to no line power. Bruce Roe
                              I owned vacation rental property there thirty years ago and initially it did not have Air Conditioning. Then most of the energy was used to heat water. My brother still owns some rental units there and installed heat pump water heaters, heat pump split systems, solar panels and some Powerwalls. One of the issues is the short term renters leave the windows and doors open with the thermostat turned to 70 degrees.

                              9 kW solar, 42kWh LFP storage. EV owner since 2012

                              Comment

                              • JWB
                                Junior Member
                                • May 2020
                                • 15

                                #30
                                Originally posted by azdave

                                I don't see any information backing up that claimed 5-year period except on their own site. I see dozens of tax sites and solar sellers explaining you cannot roll over the credit past the year the residential solar tax credit goes away which is 2021 (but ongoing for commercial). Maybe if you are a commercial installation you could take 5-years to use the credit but I would not count on that for residential past the 2021 tax year.
                                Yes, the links that PugPower listed countered what my rep says. I'm making a call tomorrow to a tax consultant to verify.

                                I would be interested in finding out WHY the tax credit for solar installation is going away? Does the government know the technology is maturing and will eventually come down in price anyway? Or be replaced by something new and cheaper?

                                Comment

                                Working...