PV Gap

Clayton Said:

Would it have benefited the u.s. more if we had each received a solar panel instead of a rebate check?

We Answered:

Let me play the thought experiment.

The companies making solar panels would have windfall profits because of sudden huge demand for over 100 million panels. If each panel is 100 watts (a round number), that 10 GW of panels, rivalling the entire production of the solar industry today.

Most people wouldn't have the capital or desire to do anything with their one panel, so there would be scavengers offering to buy these panels, sometimes at ridiculously low prices. Ultimately most people getting a panel would end up with less money than if the just got a cash rebate in the first place.

For those installing solar, or getting it installed, this would be a boon, because of the oversupply of cheap panels lying around.

Megan Said:

what amount to list for the solar tax credit ?

We Answered:

Solar Energy Industries Association (SEIA) has published a three-page document that provides answers to frequently asked questions regarding the federal tax credits for solar energy. Their answer; deduct the rebate from the cost.

If I receive a rebate for my system from my utility, does that reduce the basis on which I can claim
the federal 30% ITC?

A rebate received by a homeowner in a residential context usually does not have to be reported as income when the rebate is received from the local utility. A homeowner who does not report the rebate as income takes a “tax basis” in solar equipment equal to the net amount he paid. In other words, if the solar equipment has a gross cost of $20,000, but a rebate from the local utility pays $2,000, then his tax basis in the equipment for purposes of calculating the residential tax credit is
$18,000.