As discussed in the post above by Carl, there is an argument to be made for either 5-year or 27.5 year property. If the solar panel is installed as a permanent part of structure of the house, it really should be considered as 27.5 year property because it is a component of the house itself.
Taking a look at it from the homeowner's insurance side, insurance companies also consider solar panels to be a part of the house itself because they are considered a permanent attachment to your property.
If your particular solar panels are not installed on the roof of the house, but are completely separate from the house structure itself, then you have a better case for a shorter depreciation.
When you are working through the Schedule E Rental Income and Expenses section of your return, you would go to the Assets section to enter the solar panels for depreciation. Choose Rental Real Estate Property, then Residential Rental Real Estate. Next, you will be asked for the details of the cost. There will be a box for land. You can either leave it blank or enter zero for the cost of land. The end result will be the solar panels are depreciated over 27.5 years.
@Bryant17
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