diy solar

diy solar

Got my solar tax credits and my CPA says I can't use them, but I can sell them?? Help!

Last month my 11 kw system generated 1 SREC, I can sell that SREC for around 53 after the broker takes their cut. This is in MD, the price depends on the location and the price ceiling and the price of the penalty alternative and how many credits the power company has been mandated to purchase by the local gov.
 
Installed solar only as an investment. With the energy tax credit it will pay for itself in just a few years at todays utility rates. Given increases are inevitable it will pay for itself sooner.

If some one wants to call me wealthy I say - thank you:)))

"The top 1% of taxpayers — those who earn $561,351 or more — paid 42.3% of the total tax revenue collected in 2020, according to the latest figures from the IRS. In fact, the top 1-percent of taxpayers paid more income taxes than the bottom 90-percent all together."
 
showme said:
Since we got our off grid system commissioned this year, I turned in most of my list of expenses to my accountants. The firm are experts in RE taxes, and when I called to pay for their services, my accountant gave me some surprisingly bad news. Apparently, I can't use the credits because he said I don't have taxable income. I submitted $33,260 in receipts which, at 30%, gave me a credit of $9,978. But since I'm retired and on fixed income from my Ironworkers pension, social security and 2nd Injury fund bi-weekly checks which are not taxable, I'm told I don't have any/enough taxes to do it(?). I have had taxes withheld from my pension checks since I retired on disablilty due to a work injury in 2010, and we always get a refund. My tax guy told me that I'm just paying their office every year to get my money back, and even told me that I should stop having taxes taken out of my pension check. He said I'd just keep the money that's been coming right back to me every year.

I told him that I was planning on stopping the taxes so I could get the money back as a credit in future years, but he believes without actually being at a level that would generate taxes needing paid, that it would cancel each other out and I would be better off selling the credits. I had never heard of this. He sent me a link to renewable energy credit information on PJM Environmental Information Services, but it looks like the info on there is for states other than Missouri. He did mention that when credits are sold, it's usually for 50-70% of the face value, but anything's better than nothing.

So my question here is- Is it possible to sell "solar credits"?, and if so, how is it done? And, if so, would an off grid set up be eligible?

At this point, my wife and I are happy to just have our system and the ability to live where we want with endless "free" energy. It would be nice to get a rebate or money back down the road on our taxes, but we would have built this system regardless, so that's that.

If anyone has had this happen to them or is knowledgeable in this area, I would sure appreciate hearing your views. Thanks in advance! Lee
Click to expand...
Can you not carry them forward for any future taxable events?
 
You have to carry a high enough tax liability to take a tax credit against it. The notion that you can spend a certain amount on solar and get a third of it back as a refund is a common misconception.
 
Last edited:
2nd home, decide for yourselves. The word "principal" is missing from residence for Solar on Irs.gov (by renter, they mean THE TAXPAYER may be renting the residence, not renting it out as the landlord themselves)


  • For the Residential Clean Energy Property Credit, the following requirements apply:
    • solar water heating property expenditures, solar electric property expenditure, small wind energy property expenditures, geothermal heat pump property expenditures, and battery storage technology expenditures: the home must be located in the United States and used as a residence by the taxpayer (includes renters); and
    • fuel cell property expenditures: the home must be located in the United States and used as a principal residence by the taxpayer (includes renters).
 
If you could sell your solar tax credits you would then have to report it as income and pay taxes on it. Yes, those of us with no tax bill do not get a rebate for buying solar stuff. Just like those of us without kids do not get to claim that deduction. Sadly the tax code is filled with all kinds of social tinkering from the politicians to reward and punish.
 
Last edited:
Just stop all tax withholding from your pension and give yourself a raise in take home pay.

I always hate to sell something at 50-70% of face value when I don’t need to.

I’m not aware of a maximum time limit on carry forward of the credits so that is a good question for your CPA.

If they don’t expire I would sign up for no income tax due for a very long time so fast that the pen would melt 😎.
 
Wow! Thanks for all the replies, everyone. I didn't mean to make it sound like we're poor, although being a retired union Ironworker means no more overtime jobs, which was always nice. Between S.S., pension and Missouri's 2nd Injury fund, which essentially is a compilation of all work injuries' damage amassed over your lifetime (9 surgeries from IW injuries alone for me). That is compiled with the total degree of body damage, and then computed on the years of loss of work coming from Permanent/Total disability by social securities standards, by which they figure an amount. I get a tax free check every two weeks for the remainder of my life. So my income is not "rich" but comfortable. Also, I bought my system nearly piece by piece over a few years, so it wasn't as painful to my pocket book. But I'm always reminded of a poster I once had, which read, "I've been rich and I've been poor. Rich is better". But then again, I've learned to be content with what I have, and thankful for whatever I get. :)
 
And keep in mind that since it’s an off grid system, you’ll forget all about that missed tax credit when there’s a long term power outage!

A storm came through here about 4 hours ago and there are widespread power outages. While all my neighbors are in the dark and without water, (we all have wells), life continues as usual for me with the batteries at 94% and in about 9 more hours, the sun will be shining.
 
If you have no taxable income, why do you need a tax guy? All you gotta do is plug in some numbers from your pensions, retirement income, social security, injury fund, etc. into Turbo Tax or Tax Cut, put in the solar credits and see what it spits back out at you. If you can do DIY solar, you can at least double check the accountant's work on your own tax returns.
 
Brett V said:
And keep in mind that since it’s an off grid system, you’ll forget all about that missed tax credit when there’s a long term power outage!

A storm came through here about 4 hours ago and there are widespread power outages. While all my neighbors are in the dark and without water, (we all have wells), life continues as usual for me with the batteries at 94% and in about 9 more hours, the sun will be shining.
Click to expand...

Yes! That's exactly why I have off grid solar. My entire house is still on the grid, but I have off grid solar with 30kwh battery as backup for power outages or emergencies. And then I have backup for the backup that's completely isolated from the main backup with its own solar panels and 7kwh battery. I'm expecting a brutal summer this year and anticipate there will be some rolling blackouts.
 
JWLV said:
Yes! That's exactly why I have off grid solar. My entire house is still on the grid, but I have off grid solar with 30kwh battery as backup for power outages or emergencies. And then I have backup for the backup that's completely isolated from the main backup with its own solar panels and 7kwh battery. I'm expecting a brutal summer this year and anticipate there will be some rolling blackouts.
Click to expand...
Same here. I use the grid tie system to save money and the off grid system in place of a generator for outages.

73, de n3bv
 
Kuma said:
"The top 1% of taxpayers — those who earn $561,351 or more — paid 42.3% of the total tax revenue collected in 2020, according to the latest figures from the IRS. In fact, the top 1-percent of taxpayers paid more income taxes than the bottom 90-percent all together."
Click to expand...
This is very misleading, but true. A better visual would be, what percentage of gross earnings do the top 1% pay? Our current system allows the wealthy to deduct so many things, this lowers the percentage of their income taxed. Sometimes less than the average american.

I am sure everyone already knows, the more you make, normally the more in actual dollars you pay in taxes. As it should be.

Dollar amount is not a fair representation and tax havens for the extremely rich continue to erode the middle class.

Personally, my tax rate was high enough to receive the entire credit for my system in one year. An equitable system would give homeowners a refund for installing solar systems. Others have paid taxes all their life, why excluded them. The current skewed system only benefits people who have money to purchase expensive items. Extremely unfair considering lower income people are helping pay for my solar installation. The fix is not for me to forgo the tax credit, but allow all homeowners to receive a refund. Just like the OP, I suspect he paid a fair amount of taxes while working. Just because he is now retired and on a fixed income, he is treated differently.
 
No One is Free said:
This is very misleading, but true. A better visual would be, what percentage of gross earnings do the top 1% pay? Our current system allows the wealthy to deduct so many things, this lowers the percentage of their income taxed. Sometimes less than the average american.
Click to expand...

A lot more than percentage the bottom 40% pay.

www.taxpolicycenter.org

TPC: The Number Of Those Who Don’t Pay Federal Income Tax Drops To Pre-Pandemic Levels

After dramatically rising during the worst of the pandemic, the number of households who pay no federal income tax has fallen sharply. It will remain...
www.taxpolicycenter.org www.taxpolicycenter.org

(See graph data for 2019 and earlier, before Covid unemployment inflated the figure.)
 
You must log in or register to reply here.

Similar threads

Subdood
Solar tax credit question
2
Replies
29
Views
707
Subdood
Subdood
N
CA RESIDENTS: I am seeking advice. NEM 2/3? EV CHARGING? OFFGRID? ETC
3 4 5
Replies
94
Views
3K
Hedges
Hedges
Ryushin
Qualifying Facility and Avoided Cost Return Rate
Replies
2
Views
219
zanydroid
Z
A
EG4 18k or two 6000XP can't decide
2 3
Replies
44
Views
3K
Quattrohead
Quattrohead
N
Where is my power going?
3 4 5
Replies
88
Views
3K
New England Rhinoceros
N
Back
Top