SRECs generated from home solar syste

Forum|Forum|5 years ago
March 12, 2021
1 reply
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I installed solar panels on my home roof in 2019. I generated Solar Renewable Energy Credits (SRECs) which were sold in energy credits market by a SREC trading company on my behalf. Are those sales taxable, federal or Maryland state? If so, should I be getting some sort of 1099 from my trading company that made the payments to me?

Not A Product Question

Best answer by JohnW152

Yes, Solar Renewable Energy Credits are taxable, on both your federal and state returns.

The sales are typically reported on Form 1099-MISC. The form is generally issued to income recipients if at least $600 in income has been received.

However, the income must be reported, even if you don't receive the 1099-MISC.

Following Irene2805's advice from this page, you'll enter this income using the following steps:

Click on Federal > Wages & Income
In the Less Common Income section, click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-C
On the Miscellaneous Income screen, click on the Start/Revisit box next to Other reportable income.
On the Any Other Taxable Income? screen, click the Yes box.
Enter the income on the Other Taxable Income screen, along with a description. Click Continue.
You will be brought to the Other Miscellaneous Income Summary. If you have no more miscellaneous income to report, click Done.

JohnW152Answer

Yes, Solar Renewable Energy Credits are taxable, on both your federal and state returns.

The sales are typically reported on Form 1099-MISC. The form is generally issued to income recipients if at least $600 in income has been received.

However, the income must be reported, even if you don't receive the 1099-MISC.

Following Irene2805's advice from this page, you'll enter this income using the following steps:

Click on Federal > Wages & Income
In the Less Common Income section, click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-C
On the Miscellaneous Income screen, click on the Start/Revisit box next to Other reportable income.
On the Any Other Taxable Income? screen, click the Yes box.
Enter the income on the Other Taxable Income screen, along with a description. Click Continue.
You will be brought to the Other Miscellaneous Income Summary. If you have no more miscellaneous income to report, click Done.

vdotsAuthor

Thank you so much for clarifying this! A related question I have is: my utility company cuts me a check annually for any excess energy I generated during the preceding 12 months. I assume that will also be considered miscellaneous taxable income?

WendyN2

Yes, it would be considered Miscellaneous Income - you would report this under the "Miscellaneous Income" section and go through the questionnaire step by step to ensure that the system does not "think" this money should be allocated to a Schedule C.