My 2020 credit is guaranteed by rebate, would there be a benefit in requesting a 2021 install date?

[spooky981]

Obviously there's the time value of money - if I get the system installed in December then I get my money back a lot quicker than if I have it installed in January. But is there any compelling reason you all can think of to request a January/February installation?

Is there perhaps a chance that Biden increases the solar tax credit in 2021 and I double-dip with the rebate and the increased credit?

 

[jjrandorin]

Im not quite sure what you mean by your "2020 credit is guaranteed by rebate". Can you explain a bit more about your thoughts on that? In order to take the tax credit (not rebate), the IRS guidance says "placed into service". While we have had various opinions on what that exactly means here, in general, we all agree at a minimum it means that the system is "installed" and "able to operate.

Not sure if you are talking about the tax credit though, since you said "rebate".

 

[wjgjr]

Forecasting what will happen with the solar credit is going to be difficult. I am of the opinion that there is a good chance it will be extended in some fashion, but there are a lot of variables, the biggest of which is the cost to the government with major budget issues right now. So, it might go back to 30% or they might do nothing, or they might just do something like extend the phase-out (so go to 18% in 2022, etc.) (And I think extending the phase-out is actually the most logical thing to do - costs are dropping, and the purpose of the incentive is to help make solar competitive, so it should drop as that happens.) But, I will say that it is extremely unlikely that the 22% for next year disappears, so there is only potential upside in terms of changes to the credit.

However, I am not clear about your guarantee you mention. Is that from Tesla? If so, make sure you have it in writing and also that they agree it applies even if you ask for a 2021 install should they offer a 2020 date. Also, be aware it may take a lot of work to get that check (see the experience of others on the forum - seems like some just got a check but others required repeated calls to Tesla.)

I would probably still try to get it done this year just to be done with the hassle, but if you are comfortable with the guarantee you mention, then it probably isn't a huge deal either way.

 

[jboy210]

Obviously there's the time value of money - if I get the system installed in December then I get my money back a lot quicker than if I have it installed in January. But is there any compelling reason you all can think of to request a January/February installation?

Is there perhaps a chance that Biden increases the solar tax credit in 2021 and I double-dip with the rebate and the increased credit?

If you are scheduled for December you should go ahead with it. You need to complete construction and potentially pass inspection in December to claim a 2020 (26%) tax rate credit. Is that likely to happen? Do you have a confirmed start date?

 

[spooky981]

Just for clarification, yes, Tesla guarantees that if all of your paperwork is in order by December 1st then you are guaranteed to get the 2020 tax credit. Maybe that's through them installing it by December 31st, maybe its a discount off the price if the installation slips to January.

It is in writing.

 

[jboy210]

Just for clarification, yes, Tesla guarantees that if all of your paperwork is in order by December 1st then you are guaranteed to get the 2020 tax credit. Maybe that's through them installing it by December 31st, maybe its a discount off the price if the installation slips to January.

It is in writing.

They have done that one before to drive demand.

 

[jjrandorin]

Just for clarification, yes, Tesla guarantees that if all of your paperwork is in order by December 1st then you are guaranteed to get the 2020 tax credit. Maybe that's through them installing it by December 31st, maybe its a discount off the price if the installation slips to January.

It is in writing.

The only way I could see them guaranteeing that is by providing the 4% difference (which has a precedent of them doing exactly that). In any case, usually such a guarantee would be "because they fail to perform".

if you are considering delaying the install YOURSELF, I would be "extra" careful in verifying that you would still get that 4%. I suspect that, if you do nothing and installation slips to next year, they will give you the 4% (they did for me, and several others here). If you REQUEST a date next year, however, now that delay is on you, and if I were tesla I wouldnt give you that difference (lack of performance would not be my fault at that point).

No idea if that is what would happen, I would just be EXTRA careful in any sort of "request" to move the install date. If I were you, and in your situation, AND wanted to delay installation I absolutely would NOT tell them "I dont want it till next year". I would say nothing, and when / if they called to schedule me, I would "slow play it" and say "Oh im sorry I am out of town for the holidays" or "that date doesnt work because I have personal obligations, what is the next one?" till they gave me a date into next year.

I would not want to be on record as "requesting" directly, a date next year. Just my own personal opinion though

 

[wjgjr]

Just for clarification, yes, Tesla guarantees that if all of your paperwork is in order by December 1st then you are guaranteed to get the 2020 tax credit. Maybe that's through them installing it by December 31st, maybe its a discount off the price if the installation slips to January.

It is in writing.

That is nice to have and good to see Tesla is formally guaranteeing this. As I was getting at and jjrandorin spelled out, make sure if there is any question about who caused the delay to 2021 that Tesla will stand behind the guarantee.

I also would not be shocked if sometime after December 1, Tesla announces new pricing that roughly matches the change in the credit so they stay at that $1.49/W number they like to advertise. In addition to encouraging sales now, the guarantee may also be a way of trying to head off a flood of requests to re-price contracts.