Deductions & credits

Depending on the circumstances, claiming it as a business can be a fairly aggressive position, which is why many tax professionals won't do it.  But in my opinion, it can be done, especially in certain circumstances.

 

However, the TOTAL amount of electricity produced is counted as business income, not just the 'net'.   And at whatever point the business starts becoming profitable, the electricity produced will be subject to both income tax and self employment tax.