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Tax credit questions

Discussion in 'Tesla Energy' started by famelec, May 17, 2017.

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  1. famelec

    famelec Member

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    If the Powerball 2 is installed with a new solar panel system, is the Powerball portion also eligible for the federal tax credit?
     
  2. R0b_

    R0b_ Member

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    I'm pretty sure if you hit the Powerball you won't be getting any credits, they will likely take half right off the top!

    Now, the PowerWALL 2 installed with the solar panels, inverters etc would all count as a "system". Tax implications are individual as are any state credits.
     
    • Funny x 3
  3. doubleohwhat

    doubleohwhat Supporting Member

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    I *think* there's a rule that requires you to be able to charge the powerwall primarily via the solar panels. I'm not sure on the specifics but basically you can't install five powerwalls, a single solar panel and then qualify the whole kit for the credit.
     
  4. Boundtogo

    Boundtogo Member

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  5. doubleohwhat

    doubleohwhat Supporting Member

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    My favorite line in that document:

    "Yes. The tax credit can be used against either the federal income tax or the alternative minimum tax."

    Freaking AMT...
     
  6. AZSam

    AZSam Member

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    Question: I have an existing 7 kW solar system and want to add 2 Powerwall 2 battery backups. Can I apply the 30% Investment Tax Credit to my income tax? It seems like if the Powerwalls are installed at the same time as the solar system, the Investment Tax Credit does apply.
     
  7. AZSam

    AZSam Member

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    On the last page of this link; under "Can you use the solar tax credit for batteries", it states that "if you install a battery as part of your solar energy system" it is eligible.

    This isn't an IRS document but it seems like they have researched it. Has anyone looked into the question of adding the batteries later?
    Solar Batteries: What Will They Cost? | EnergySage
     
  8. miimura

    miimura Active Member

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    I also thought that solar had to be installed concurrently. However, I found that the ITC can be applied to batteries as long as they are charged 75% or more from solar. It doesn't matter when the solar was installed. Also, the ITC depends on the percentage of solar charging. For example, if you charge 90% from solar, you get a tax credit equal to 90% of 30% of your net cost after other incentives.
     
  9. AZSam

    AZSam Member

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    Thanks miimura,

    I'm wondering how one would verify what percentage of battery charge was/is by solar. Since I usually have an excess of solar power every month except January and February; the solar would seem to provide at least 83% of the battery charge. My "tru-up" resets at the end of the December bill cycle. I usually have a little excess on the December bill for which I get credit at the wholesale rate $.034/kWh.

    Can you refer me to the source of the information you provided. That will be the "make or break" decision regarding my Powerwall purchase. I have had a site survey and a quote from Tesla / Solar City.
     
  10. miimura

    miimura Active Member

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    This is a good article that seems to dispense clear facts.

    When is Energy Storage Eligible for the 30 Percent ITC?

    The solar percentage on a PowerWall would be completely determined by the charging strategy implemented in the PowerWall. Even when you don't have a "surplus" of solar, the battery could be charged completely from solar. The PowerWall could communicate directly with your solar inverters, or the installation could put CTs directly on the solar circuits so that Tesla can collect the data by themselves. This is one reason that people want to know how these settings are managed in the PowerWall 2. Apparently the Tesla app does not expose any of these settings and only shows you the status and history.
     

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