I'm trying to figure out what exactly qualifies as "installation completed" for my solar array so I can take advantage of the tax credits before they potentially expire. I heard from my installer that it's my call whether to notify my utility company about the solar installation. He suggested that if everything's done according to code by a master electrician, I might skip notifying them to avoid any unforeseen agreements or fees in the future. If I don't notify the utility, how can I prove that I completed the installation before the end of this year?
3 Answers
You definitely need to notify your utility about your solar setup. Most utilities have strict rules for connecting to their grid. As for tax credits, you should keep a record of all qualifying expenses like installation receipts and proof that your system was operational by the end of the year. Relying on your final inspection might be key if you don't have a utility permission to operate.
From what I've learned, the IRS considers your solar system operational when it actually starts generating power, not just when it’s capable of doing so. You'll want to keep track of the output history from your solar app to show your system was up and running before the deadline for tax purposes.
That makes sense! So if I have data showing power production, that should be enough if they audit me?
While I’m not a lawyer either, the law doesn’t require permits for tax credit eligibility. However, you should be able to prove installation completion by having a final inspection or documentation that your system was operational. It’s crucial to keep all your receipts and installation records, just in case you need them later.
Thanks for clarifying! I guess keeping records is a must then, especially since I’ll be off-grid.
What if my system has no chance to backfeed into the grid? Can I still claim the credit?