[RE-wrenches] Whats allowed in Fed. Solar Tax Credit

[Jeff Yago]

Most likely at this time of year you are starting to get calls from client's accountants asking about "classification" of the costs related to a solar system purchsed that year from you by their client.

For most grid tied pv systems and solar DHW systems is fairly easy to advise the cost allocation to each class of solar system purchase.  However, a large part of our solar system installs include battery backup, generators, and major modifications to the home's electrical service to re-locate loads to inverter sub-panel and a generator sub-panel.  

I have heard rumors that some tax officials will allow the cost of batteries and a generator in calculating the cost of the "solar system", even though the battery-based inverter MUST have the battery bank to function.  I am also wondering how they are going to view the high cost of switchgear modifications required to provide the backup power to specific loads, or the cost of any special room construction to house a large battery bank, which in many larger systems are also required to make a complete and safe system.

I have read the SEIA interpertation of the new tax code but do not feel these specific issues were addressed that clearly, and since I do not want to start giving tax advice based on just my reading of the bill are there any actual rulings on each of these added costs we can use as a guide?

Jeff Yago
DTI Solar

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