diy solar

diy solar

Current solar tax credits, eligible purchases and upgrades

My guess is that means you can have your energy bill (many smaller companies in Cal that buy power on paper) buy clean power. So that does not mean panels on every home-that PUC piece is a bit vague on details.
We have local outfit that buys power in greener lots and we get a small savings on power than from say PG&E the main producer in Nor-Cal
More solar is a good thing anyway you slice it.
 
Not just "clean power".
There have been arguments about whether existing planned utility scale power qualifies, vs. community solar, tied to a new housing development.
Otherwise the state could just impose a $5000 tax on all new homes and hand the cash to PG&E for wholesale large PV plants.
Of course, cash-strapped first time buyers don't need the extra up-front (or added to mortgage) expense. Would rather pay for utilities to start. Investors with money to spare would like to pay for power plants.
 
If PG&E is involved we all loose-they are justa greedy stockholder company that gone belly up before.
If the solar singles come down in price maybe that would be the way to go for new homes as ppart of the roof cost
 
something I had read the other day made it sound like the credit mainly applied to initial system purchase and any associated install cost in the original filing year. after that, it sounded like only batteries would qualify if purchased afterward. meaning additional panels, mounting and wiring would not qualify. it even made it sound like any additional charge controllers or investors would not qualify if purchased after the initial, functional solar system was bought and installed
Hi SDT, It sounds like you are where I am at. I assume that you are referring to the federal tax credit. I have an existing grid-tie that I have had in service for about 9 years and I am looking to add panels, SCC and hybrid inverter w/ battery. Did you ever get more details on what can be eligible for tax credits?

Regards,
 
I would ask your tax man on that as you already have been at the tax relief trough 9 years ago.
My guess is anything new added is still good for the tax credit while that credit lasts in the next two years
let us know how this pans out so other can see
 
Hi SDT, It sounds like you are where I am at. I assume that you are referring to the federal tax credit. I have an existing grid-tie that I have had in service for about 9 years and I am looking to add panels, SCC and hybrid inverter w/ battery. Did you ever get more details on what can be eligible for tax credits?

Regards,
I have not found an answer, for this year (2022) tax law yet.

my tax guy is good (I think?) but he is new to filing solar credits.

my wife sold her business this April, so our taxes may simplify. I *might* consider filing our own taxes this year. my boss is a CPA, so I can consult if needed. however, she is not familiar with solar credits either.

I honestly will most likely just file for the credit. I will buy about 13k to 14k worth of expansion supplies. surely they will fall safely under the credit??

from what I read Battery expansion is covered. that will constitute 2/3 to 3/4 of my expense.

this is the fun of dealing with theives... er... uh... I mean United States federal tax law.
 
I'm curious, does DIY install qualify for the federal solar tax credit?
I am not a tax expert but I told my tax expert that a solar system was installed in 2021 and gave him the numbers. So far no one has asked if it was DIY and probably never will. It was all new equipment. There is no question on the IRS form about any of the details of the installation.
 
Last edited:
Yes battery expansion is covered-all things in the system are covered with the feds conduit ,wire, optimizers ,New solar water heaters (a stretch for sure) but all part of the system) The racks ,nuts, bolts, trencher rental -it all adds top . Mine is in 3 tax years so I have some experience over time.
 
Do you have to get a City permit to get the credit? I live in LA, California. Did you get it?
I got the credits for a permitted GT solar system and later got the credit for an unpermitted hybrid battery system. Putting numbers on a tax return is no garantee that something will survive an audit, so be careful with advice from an anonymous source on the Internet.
 
Last edited:
DIY off-grid solar can get federal and state credits for my home? Do you have to get a City permit to get the credit? I live in LA, California. Did you get it?
I'm going to get it, this year.
But yes, diy counts.
Keep your receipts for 7 years, in case of an audit.
 
I got the credits for a permitted GT solar system and later got the credit for an unpermitted hybrid battery system. Putting numbers on a tax return is no garantee that something will survive an audit, so be careful with advice from an anonymous source on the Internet.
If you're going to take anonymous advice from the internet always verify with your favorite bartender. :)
 
That just means that it must be applied towards your taxes due. It can't be received as cash.
For instance, if your taxes due for the year was $1500. And you had $2000 worth of tax credits. Your $1500 would be paid. And the other $500 would just not be counted. Because, you can't receive it as cash.
However, I believe that it can be carried over to the next year.
FYI Taxes due is misleading. Tax liability is what it is. You can get prepaid payments or paycheck withholdings refunded. Other than that Tim is right on.
 
FYI Taxes due is misleading. Tax liability is what it is. You can get prepaid payments or paycheck withholdings refunded. Other than that Tim is right on.
I was looking for that question to be answered. To phrase that another way, lets hypothetically say my 2022 tax liability is fairly high, my pay withholdings are balanced, and my amount owed to the IRS comes out to $0 (without anything about solar included in the calcs). I also spend $10k on various items for use installing a solar system (panels, wiring, mounts, inverter, etc.). If I file the paperwork properly, I'll get a $2,600 check from the IRS because the tax liability I'm responsible for (and which I've withheld) is more than $2,600?
 
I was looking for that question to be answered. To phrase that another way, lets hypothetically say my 2022 tax liability is fairly high, my pay withholdings are balanced, and my amount owed to the IRS comes out to $0 (without anything about solar included in the calcs). I also spend $10k on various items for use installing a solar system (panels, wiring, mounts, inverter, etc.). If I file the paperwork properly, I'll get a $2,600 check from the IRS because the tax liability I'm responsible for (and which I've withheld) is more than $2,600?
Yup
 
And then (with current federal plans not yet expired) add capacity some more then next year and get a rebate on that, too?
Yes, but the credit is being reduced each year.
If they don't extend it, it will disappear soon.
 
I was looking for that question to be answered. To phrase that another way, lets hypothetically say my 2022 tax liability is fairly high, my pay withholdings are balanced, and my amount owed to the IRS comes out to $0 (without anything about solar included in the calcs). I also spend $10k on various items for use installing a solar system (panels, wiring, mounts, inverter, etc.). If I file the paperwork properly, I'll get a $2,600 check from the IRS because the tax liability I'm responsible for (and which I've withheld) is more than $2,600?
yes
 
And then (with current federal plans not yet expired) add capacity some more then next year and get a rebate on that, too?
26% for 2022, 22% for 2023 taxes and after that I believe it is 10% for professional installers only. Unless it gets changed or extended.
 
spend $10k on various items for use installing a solar system (panels, wiring, mounts, inverter, etc.). If I file the paperwork properly, I'll get a $2,600 check from the IRS because the tax liability I'm responsible for (and which I've withheld) is more than $2,600?

Or just reduce your withholding by $2600 for the second half of this year and be done with it.
 
Back
Top