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zach477's avatar
zach477
Explorer
Jul 18, 2015

Solar installation Tax Credit

So the solar tax credit can cover everything included in the installalation of solar panels. This includes batteries, however, from what I understand, the batteries need to be charged from the solar panels at least 70 percent of the time. If they're charged from shore power 50 percent of the time, for example, you can no longer receive the tax credit for the cost of the batteries.

How does one accurately monitor this? Estimate?

How would Uncle Sam verify it?

Could I turn off/disconnected the converter so the solar panels charged the batteries, and shore power ran the 110 V system? Would the panels keep the engine battery topped off as well?
  • zach477 wrote:
    How would Uncle Sam verify it?


    Well there is a little known or talked about clause in the tax law that states that each solar panel has to have a data chip that collects charging info as well as a GPS sending unit to send the data to the solar panel control satellite where it is then downloaded to the IRS solar charging computer data base. This data is then compared to your tax return.
  • Dtank wrote:
    Bumpyroad wrote:
    is your RV your primary residence?
    bumpy


    "ReneeG" replied, but........

    Don't think we heard back from the OP, "zach477"..:h

    .


    Jeez, you're impatient, haha. I'm not sitting here hitting "refresh" ALL day long. Only part of the day. ;)

    Yes, it will be my primary residence.
  • Bumpyroad wrote:
    is your RV your primary residence?
    bumpy


    "ReneeG" replied, but........

    Don't think we heard back from the OP, "zach477"..:h

    .
  • Thanks Dick_B for the name of the IRS form. I checked it and immediately see we are disqualified. Although we can file our loan interest on our RV because it's considered a second home, according to the iRS form for the solar energy, it has to be your main home.
  • If the IRS comes out just turn off the converter then.

    Check voltage on the chassis battery is above 13.2 volts and it is getting charged. 12.8 or less is not getting charged. Just add a Trik-L-Start combiner if needed.
  • http://www.renewableenergyworld.com/articles/2013/04/irs-confirms-that-batteries-qualify-for-the-energy-tax-credit-but-imposes-limitations.html

    I believe it was a ruling made by the IRS after they came out with the tax credit.

    I mistakenly said 70 percent. It is actually 75.
  • It may pay to review IRS form 5695 to fully answer your question or take the question to your favorite CPA; which I am not.
    My reading of the form indicates 30% of the cost of the solar installation can be deducted from your tax obligation for the year of the installation. I saw nothing that indicated battery charging was involved nor would the credit be valid for succeeding years. If the credit is greater than the amount of tax owed the balance can be carried over to 2016.
    There may be a limit of $500 for all such Residential Energy credits since 2005 or so.

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