Federal Tax Credit Questions

[agarg]

Hi Folks

I installed a permitted a 10.7 kw micro inverter with a 10.2 kwh ESS earlier this year. It was permitted and was inspected and subsequently PGE gave me a PTO. While the Micro inverters were functioning great initially, many have gradually stopped functioning one after another over time. At this time, I have about 50% of micro inverters that are functioning from the AC side (as per the PLC data) and those are not producing any meaningful power (<5w as per the gateway). The voltage on the DC side stays pretty stable close to the Voc and the MPPT does not appear to kick in. I have spent 1,000's of dollars to trouble shoot these DC side failure in labor alone and have not received any meaningful support from the manufacturer.

Having reached at the wits end, and the fatigue due to prolonged tenacious efforts to remedy this, I am now going to replace these with either another brand micro inverters or a hybrid with bare minimum MLPE. There may be legal remedies available to me but that is a "potential" different thread. In the meanwhile, I have a federal tax question:

Will the replaced micro-inverters or the hybrid qualify as part of total cost of install to replace the failed component? It is in the same tax year after all. Alternatively, I can defer the replacement to next year and then also claim federal tax benefit also in the next year. I have been a simple tax filer and hence do not have the depth of knowledge on this and neither does my Turbo-Tax!!

I spoke to the PG&E and I told her that I will go to building department with revisions to show the replaced components. She they told me that as long as I stay at or below the rated AC and rated DC, they don't care. The operative word is "Upgrade" and this does not classify as upgrade(phew!).

Much appreciate any pointers.

Thank you.

Anil

 

[Hedges]

I think you can also add no more than 1kW or 10% and keep your NEM plan.
That opens up the possibility of adding ~10kW of string or hybrid inverter together with no more than 1kW of PV panels, call it more system for rebate purposes. But you need to determine if PG&E accepts oversize inverter.

Not available this year, but if you were to install SBSE as a battery inverter, that could be eligible for rebate and allowed by PG&E (what limits on total battery inverter watts?) Then later put RSD on PV panels and wire as string to this PV/batter inverter.

You would think one could install an inverter, have it die, buy another & install, and put all on the federal rebate.

If replacing the inverter next year, maybe you would have to install a single new PV panel (or a battery) to make it a system eligible for rebate.

I think you've got SBS + ABU as an ESS providing backup. Not sure SBSE gives you more than simply buying an old-stock SB. But it could; 7.7kW SBSE (available 2024) or up to 11.5kW SBSE (2025, I've heard) could handle 15kW or 23kW of PV, backfeed only it's nameplate to remain within your NEM agreement (+1kW), and the additional PV overpaneling keeps it at 100% longer, beyond that it charges battery which can discharge and continue at 100% even when sun low. SBSE inverter is cost effective but battery is expensive.

 

[Danke]

You have 10 years. So if you can’t get all the credits in one year, you can carry it forward.

 

[JWLV]

Not legal advice or anything, but I've claimed the federal tax credit when I first put in a smaller 12-volt PV system with 100W panels many years ago. Subsequently I upgraded and replaced it a larger 24-volt system and 250W panels and claimed the credit for the new equipment. Soon, probably next year, I plan to replace the 24-volt system with a 48-volt system, with a new inverter and a server rack of 48-volt batteries. I plan to claim the tax credit on the new equipment. As far as I know, there are no rules on decommissioning old PV equipment that you took a tax credit on previous installations. My understanding is that to qualify for the tax credit, your PV equipment must be new, installed, and turned on during the year that you take the credit. If taken literally, one could install an entire system, turn it on for 1 minute, turn it off, take it all down, and still qualify for the credit. I could be wrong on this, so if someone else knows better, please correct my assumptions.

 

[agarg]

I think you can also add no more than 1kW or 10% and keep your NEM plan.
That opens up the possibility of adding ~10kW of string or hybrid inverter together with no more than 1kW of PV panels, call it more system for rebate purposes. But you need to determine if PG&E accepts oversize inverter.

Fascinating. While, it is not fun to get answer for complicated questions from PGE, it is worth considering. In my application, they initially objected by saying that historically, my usage is not consistent with the new install capacity. I had to explain that my plans included EV, Heat Pump etc for them to OK this. Funnily enough, no objection come from building department.

Sunny boy Smart energy (SBSE) is indeed a great product that would add capability for more battery in the future. But it is out there in future. I got burned and bace a beta site inadvertently (shame on NEP for not informing that this is a new untested product). Now, I almost feel like going for a model that has been around for a while and even forego some cool features.

For SMA, its, perhaps, worth the wait as they do have a reputation of reliable products.

Will keep this on Federal rebate and I will start a new thread on what to replace a micro with!

You have 10 years. So if you can’t get all the credits in one year, you can carry it forward.

That is a thought! So it does not matter when it was PTO (permitted to operate)?

claimed the credit for the new equipment

If you have a new install, and in that new install, one has some new equipment and some refurbished and some new, will that still qualify for the Fed rebate?