Question on solar....

[Melly Mel]

Hello,
Brand new to TFP...haven’t signed a contract yet with a PB for a 35x15’ rectangular pool with spa but am getting close. I will post all the details of it before I sign as I have seen others do.

I do have a question on solar...I’m trying to get solar panels installed on my new house in Las Vegas and would like to get it done by the end of the year to get the 30% federal tax incentive. The pool builder I am likely to go with says to wait until the pool is finished before getting the solar because you would not know how many panels you would need and that makes sense. I would lose out on 4% as the incentive drops to 26% next year and that’s okay if that’s the right thing to do. The solar companies that I’ve spoken with say that you can do it now and get the full credit because 1) they can calculate what I would need in terms of panels from the pool plans and 2) if necessary, you can also add more panels later (at more cost).. Has anyone done this or have a strong opinion on which way to go? Would greatly appreciate hearing any thoughts on the matter. Thanks!

 

[ajw22]

Welcome to TFP.

 

[Rocket J Squirrel]

It's not easy to estimate the sizing for photovoltaic panels, especially with a new house. You really want to see a year of history of electrical consumption, preferably with the pool pump running at your chosen optimal speed(s). I installed 36 250w panels in 2012, and I didn't get it quite right. Now I wish I'd installed more. Adding on to an existing installation varies in difficulty.

Since the federal tax credit only reduces to 26%, I think it would be worth it to get better numbers while you run the pool for a while. It will also give you time to make sure you have an income tax liability of at least the amount of the credit. The credit is non-refundable, meaning if you can't use it all in one year, you have to carry the remainder forward to following year(s).

 

[ajw22]

Are we talking about pool solar heat or solar electricity? I was thinking pool solar heat.

 

[Rocket J Squirrel]

There is no federal income tax credit for pool solar heating.

Qualified solar electric property costs.
Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. The home doesn't have to be your main home.

Qualified solar water heating property costs.
Qualified solar water heating property costs are costs for property to heat water for use in your home located in the United States if at least half of the energy used by the solar water heating property for such purpose is derived from the sun. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. To qualify for the credit, the property must be certified for performance by the nonprofit Solar Rating Certification Corporation or a comparable entity endorsed by the government of the state in which the property is installed. The home doesn't have to be your main home.

Instructions for Form 5695 (2018) | Internal Revenue Service
Emphasis mine.

 

[Melly Mel]

Sorry I wasn’t more clear..I am talking about solar electricity. I am leaning toward waiting.....4% is not the end of the world and you bring up good points Rocket Squirrel... plus I haven’t been in the house for the hot Vegas summers either so between that and the pool costs, I really don’t have a good basis for the electrical consumption.