Solar tax credit year question about installation vs interconnection
December 19, 2022 12:50 PM Subscribe
Can anybody help me find resources for researching whether you can claim the solar tax credit in the year in which the solar panels were installed on the roof (and inspected by the city, if relevant), or if the interconnection agreement must have been approved by the utility so the panels can start providing power to the house as well?
It would be better for us if we could claim the tax credit in the year of installation, since that would mean we get our (sizable) credit one year sooner.
I am having trouble finding any information online on this one way or the other. I haven't been able to find search terms that provide results relevant to this question as opposed to other (presumably much more common) questions around solar and the tax credit.
As far as I can tell the tax code just specifies that "installation" must be complete, but it doesn't define exactly what that means when an interconnection agreement is involved.
We usually prepare our own taxes, so if enough information is available I would prefer to do the research myself as opposed to hiring a professional to answer this one question.
It would be better for us if we could claim the tax credit in the year of installation, since that would mean we get our (sizable) credit one year sooner.
I am having trouble finding any information online on this one way or the other. I haven't been able to find search terms that provide results relevant to this question as opposed to other (presumably much more common) questions around solar and the tax credit.
As far as I can tell the tax code just specifies that "installation" must be complete, but it doesn't define exactly what that means when an interconnection agreement is involved.
We usually prepare our own taxes, so if enough information is available I would prefer to do the research myself as opposed to hiring a professional to answer this one question.
Response by poster: This is for the US federal 30% credit. I am indeed in CA.
I have not looked into what supporting documentation is required yet, that’s a good suggestion for a place to start.
posted by unus sum at 3:14 PM on December 19, 2022
I have not looked into what supporting documentation is required yet, that’s a good suggestion for a place to start.
posted by unus sum at 3:14 PM on December 19, 2022
The federal credit, according to the Department of Energy, is for the year of completed installation but NOT the year of interconnection (i.e. you do not need proof of interconnection to claim the credit).
See the DOE guide, specifically under "I am not connected to the electric grid?"
Looks like you don't even need to submit a manufacturer's/installer's certificate of installation, just to have one if you get audited.
posted by byzantienne at 3:36 PM on December 19, 2022 [2 favorites]
See the DOE guide, specifically under "I am not connected to the electric grid?"
Looks like you don't even need to submit a manufacturer's/installer's certificate of installation, just to have one if you get audited.
posted by byzantienne at 3:36 PM on December 19, 2022 [2 favorites]
I've had solar panels installed twice and in both cases my understanding was you claim the credit for the year it was installed.
posted by Nec_variat_lux_fracta_colorem at 5:20 PM on December 20, 2022 [1 favorite]
posted by Nec_variat_lux_fracta_colorem at 5:20 PM on December 20, 2022 [1 favorite]
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(I could give you the answer for the New Mexico state credit, but from your previous asks you are in CA, where I am less adept at the intricacies. Were you required to obtain a certification of installation? If so, did it require an interconnection date? That's where I'd start looking.)
posted by byzantienne at 2:47 PM on December 19, 2022