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Federal Tax Credit When Adding To An Existing System?

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  • Federal Tax Credit When Adding To An Existing System?

    Does anyone know if federal tax credits are available to NEW solar equipment added to an existing system that already received such tax credits?

    I am going through various documents and see that you can't apply or receive tax credits twice on the same system (of course not), but the terminology doesn't directly refer to expanding upon an existing system. My goal is to add a few panels to my array. I guess the next train of logic would be, what is considered a new verses existing system at the same address?


    Peace,
    Dr. Z.

  • #2
    Originally posted by Zeigh View Post
    Does anyone know if federal tax credits are available to NEW solar equipment added to an existing system that already received such tax credits?
    I am not a tax professional but I have added components to several systems and applied for the ITC a year or two after the original application. If I recall correctly the form does not ask questions that would characterize whether components were added to an existing system. So far, I have not been audited so that is no guaranty. I also don't get my tax advice from anonymous sources on the Internet but I can freely relate my experience.
    Last edited by Ampster; 09-25-2021, 01:41 PM.
    9 kW solar, 42kWh LFP storage. EV owner since 2012

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    • #3
      Yes, you can add solar equipment and claim the federal ITC.
      BSEE, R11, NABCEP, Chevy BoltEV, >3000kW installed

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      • #4
        The interpretation I saw at one point is if you add capacity to an existing system you can take a credit. So if you have a 4KW system and add 2 KW of additional panels then you can deduct the additional panels. This was a interpretation by one tax pro. Thus adding equipment for additional monitoring or replacing one inverter with another to support an existing array probably not. Converting an existing system to on/off grid probably not.

        Then again the IRS is quite backlogged and has not been aggressive solar audits, if you tank the deduction worse case is a meeting with an IRS agent and a couple of years of interest on disallowed deduction.

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