I have a follow up question to this answer. According to Carbon Solutions Group, the entity that issues the SREC payments in IL, SREC payments should NOT be considered taxable under the following premise:
"We have been advised by our accountant that there is no need for us to send out 1099’s to our customers.
The reasoning behind this is that REC income is offsetting an investment made in solar, and as long as the overall investment has not become profitable, the REC payment does not impact your income taxes.
If you have begun to profit from your solar system through claiming incentives or any other reason, then you should report it to the IRS and pay taxes on the revenues.
That being said, why would an SREC payment be taxable income if the cost of Solar is significantly more than the SREC payment?
