Hello,
Congratulations on installing your solar panels! A great investment!
I would like to clarify the statement that you do not normally have a tax liablility at the end of the year. Do you mean that you do not normally owe taxes but have a refund instead?
I will assume that you mean you normally have a refund. You may still have a tax liablility that you can use the solar tax credit against to reduce it to zero. If you do not have enough liablilty to use up the credit, you can carry it forward to the next year.Unfortunately the energy credit is not refundable.
I have included a link with more information on the energy credits:
https://turbotax.intuit.com/tax-tips/going-green/federal-tax-credit-for-solar-energy/L7s9ZiB4D
Regarding taking money out of your 401K to pay off debts and increase a tax liablility, that is not something I would advise. You would be subject to a 10% penalty of the amount withdrawn if it is an early withdrawal - withdrawn before the age of 59 1/2
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