Investors & landlords

Like many people have said here, you can get the credit, but it will be an ITC credit and not the typical solar credit folks are using for their primary residence. Percentage is going to be the same (26% for 2020-2022). 

You can also deduct 87% of the cost as a deduction (list as an “asset” for your rental property, select “appliances” and add 87% of what you paid for it). The depreciation will apply over the next 5 years, and it becomes a gift that keeps on giving. 

The ROI on solar actually tends to be even better on rental properties, because you get to deduct this depreciation on top of the ITC credit. Plus, it increases the rental value of the home in comparison to homes that do not have solar. In fact, as inflation and utilities go up in price (8% in California this year), you have a fixed cost and can split the savings with your tenants/make a profit/payoff faster as a result.