solar panels

Forum|Forum|2 years ago
March 30, 2024
2 replies
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I purchased energy efficient solar panels from Sunrun company. They also installed the solar panels for my home. I am paying month payments for the cost. What would be the deduction amount I can claim for 2023 tax return?

DoninGA

Employee

If the panels were installed in 2023 then you can enter the total cost including installation on your 2023 tax return. You will receive a tax credit of 30% of your cost. If the credit reduces your 2023 tax liability to zero, an remaining credit will be carried forward. You cannot claim the ongoing payments you are making.

To enter Home Energy Credits -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credit
Click on I'll choose what I work on (if shown)
Under Your Home
On Home Energy Credits, click the start or update button

samahlerAuthor

On the Sunrun agreement, it was not specifically stated the total cost but rather it was stated this way...

"The TOTAL COST* for the solar energy system (including financing and energy/power cost if applicable) is: $277.15 per month, escalating at 3.50% per year for 25 years".

Would it be safe to calculate the total cost this way:

($277.15 x12) x 25 years = $83,145.

Thanks,

Susan

DoninGA

Employee

No, since that calculation includes interest on the amount financed.

You need to contact the company that installed the solar panels for exact cost of the panels plus installation as if you did not finance the purchase.