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VIDEO: How Does Solar Work for Your Home?
Just like photosynthesis captures the power of the sun to grow plants, a solar photovoltaic (PV) system captures the power of the sun
June 9, 2021
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Normally, the depreciable life of solar panels is 85% of the full solar system cost which may be depreciated roughly as follows: Year 1 – 20%, Year 2 – 32%, Year 3 – 19.2%, Year 4 – 11.5%, Year 5 – 11.5%, and Year 6 – 5.8%. Are you interested in a free solar consultation to show you what the numbers could look like?
For those new to business ownership:
As a large purchase that will be used overtime, a solar system’s cost is deducted from taxable income via a so-called 5 year ‘depreciation’ (rather than 100% immediately as a direct ‘expense’). While 26% of the cost is recovered directly as a credit against tax liability for the year of installation (see above), the law nonetheless allows 85% of the full system cost (rather than 70%) to be deducted from taxable income over time via ‘depreciation. Depending on the tax bracket, roughly 12-25% of original system price may be recouped this way.
For more information on the federal MACRS & Bonus, see IRS Publication 946, and IRS Form 4562. IRS Brief Overview of Depreciation
Always contact a trusted tax professional to verify eligibility in business’s specific case.
Just like photosynthesis captures the power of the sun to grow plants, a solar photovoltaic (PV) system captures the power of the sun
By Dan Hancock, Senior Commercial Project Developer, StraightUp Solar Small businesses in the U.S. spend $60 billion a year on energy (U.S. EPA ENERGY STAR),
When you start researching solar panels for your home or business you start seeing kW and kWh everywhere, but what do they mean?!?! The Kilowatt
