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TickTock
Posts: 1701
Joined: Sat Jun 04, 2011 10:30 pm
Delivery Date: 31 May 2011
Leaf Number: 3626
Location: Queen Creek, Arizona
Contact: Website

Tax Relief for Solar Investment Losses?

Fri Jul 03, 2015 8:31 am

Long story short, the supplier of my solar panels (OPEN Energy/Applied Solar) has gone bankrupt. Meanwhile the famous Arizona heat has damaged my 11KW array beyond repair. It is a systemic problem - all 320 individual panels have opens below the glass resulting in low or no output. I took one apart to verify and that was a lot of work since they are glued together with lots of Silicon. These are the roof tile style which I paid a premium for. I wouldn't have even managed it without pricey solvent (Dynasolve 220). No way I'm going to do that for all 320 panels (labor cost would be higher than the array). I've spent over $20K out of my pocket for the array and have only gotten $11500 back in electricity since the installation in 2009. I need to replace the entire array (inverter, at least, is OK). So... since I cannot go after the company that sold it to me, is there a way I can at least write off the losses in my income taxes? How does that math work? I valued the array at over the $20K I spent since I expected it to live well beyond my break even point so assuming I can, what would I claim to be my losses?

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TomT
Posts: 10570
Joined: Sun Aug 08, 2010 12:09 pm
Delivery Date: 01 Mar 2011
Leaf Number: 000360
Location: Foothills of Granada Hills, CA
Contact: Website

Re: Tax Relief for Solar Investment Losses?

Fri Jul 03, 2015 8:45 am

I don't see any practical (or legal) way you could write off the loss unless you are a corporation...
59,991 miles/12 bars/289 Gids/68.54 AHr/101% SOH/101.64% Hx 7May15 w/ new Lizard (barely made the warranty).
71,770 miles/12 bars/256 Gids/59.04 AHr/88% SOH/87.92% Hx 3Mar16 at lease return.

Now driving a 2016 Volt Premier. Model 3 configured.

freeewilly
Posts: 33
Joined: Tue Jul 08, 2014 3:34 pm
Delivery Date: 08 Jul 2014

Re: Tax Relief for Solar Investment Losses?

Mon Jul 06, 2015 10:24 am

Since the solar panels are part of the house now, does it covered by homeowner's insurance?

QueenBee
Posts: 1564
Joined: Sun Aug 08, 2010 5:14 pm
Delivery Date: 20 Jun 2011
Leaf Number: 2062
Location: Bellevue (Seattle), WA

Re: Tax Relief for Solar Investment Losses?

Sun Nov 01, 2015 4:04 am

That's a huge bummer :( It would be nice if the warranties which are backed by insurance policies were more clear and exactly what the policy would cover. I have no idea if any of my equipment is backed by insurance policies.

The cost of the system wild get added to the basis of your home so when you go to sell it you will not have to pay income tax on that gain but their is a large exemption in place that probably covers the gain.

Also thought of this but not likely applicable.

https://www.irs.gov/taxtopics/tc515.html
"A casualty loss can result from the damage, destruction or loss of your property from any sudden, unexpected or unusual event such as a flood, hurricane, tornado, fire, earthquake or volcanic eruption. A casualty does not include normal wear and tear or progressive deterioration."

jpadc
Posts: 274
Joined: Sat Dec 13, 2014 7:25 am
Delivery Date: 20 Dec 2014
Location: Indiana & Wisconsin

Re: Tax Relief for Solar Investment Losses?

Sun Nov 01, 2015 9:42 am

TickTock wrote: is there a way I can at least write off the losses in my income taxes

Well, you maybe could go to Vegas and win a lot of money and reduce your income taxes on those winnings by claiming the panels were a gambling loss. I mean clearly the "investment" was basically a crap shoot :lol: But if you go that route, don't count on us visiting you in jail...
2013 Leaf S /w Charge Package - Purchased new in Iowa City Dec. 2014
My previous car was a 2008 Prius Touring Package 5 - 73k Miles, 43 MPG lifetime

smkettner
Posts: 7021
Joined: Mon Aug 09, 2010 10:13 pm
Delivery Date: 26 Feb 2014
Location: Orange County, CA

Re: Tax Relief for Solar Investment Losses?

Sun Nov 01, 2015 11:45 am

Did you not take a tax credit the year they were purchased?
1 bar lost at 21,451 miles, 16 months.
2 bar lost at 35,339 miles, 25 months.
LEAF traded at 45,400 miles for a RAV4-EV

Valdemar
Posts: 2419
Joined: Tue May 10, 2011 10:32 pm
Delivery Date: 09 Sep 2011
Location: Oak Park, CA

Re: Tax Relief for Solar Investment Losses?

Sun Nov 01, 2015 8:12 pm

Ouch, that hurts. I went with LG just because there is a good chance they will be around should I need to file a warranty claim 10 years down the road. Can't provide any input on the original question. You may want to ask it on a solar-specific forum, such as solarpaneltalk.
'11 SL, totaled
-1CB@33k/21mo, -2CB@53k/33mo, -3CB@68k/41mo, -4CB(41.5AHr)@79k/49mo, -5CB(38.85AHr)@87.5k/54mo
-0CB(66.14AHr)@87.5k/54mo (BBB)
59.7AHr, SOH 93%, 118k miles
9kW Solar

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drees
Moderator
Posts: 6209
Joined: Fri Apr 23, 2010 3:51 pm
Location: San Diego

Re: Tax Relief for Solar Investment Losses?

Sun Nov 01, 2015 9:04 pm

Ouch, that really sucks.

Out of curiosity, what is the specific brand / model of panels you have?
'11 LEAF SL Powered By 3.24 kW Enphase Solar PV

Valdemar
Posts: 2419
Joined: Tue May 10, 2011 10:32 pm
Delivery Date: 09 Sep 2011
Location: Oak Park, CA

Re: Tax Relief for Solar Investment Losses?

Sun Nov 01, 2015 9:25 pm

'11 SL, totaled
-1CB@33k/21mo, -2CB@53k/33mo, -3CB@68k/41mo, -4CB(41.5AHr)@79k/49mo, -5CB(38.85AHr)@87.5k/54mo
-0CB(66.14AHr)@87.5k/54mo (BBB)
59.7AHr, SOH 93%, 118k miles
9kW Solar

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drees
Moderator
Posts: 6209
Joined: Fri Apr 23, 2010 3:51 pm
Location: San Diego

Re: Tax Relief for Solar Investment Losses?

Sun Nov 01, 2015 11:06 pm

Hmmm, could be. 11,000 / 320 is about 34.

Would definitely want to get those off the roof...
'11 LEAF SL Powered By 3.24 kW Enphase Solar PV

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