I Installed solar panels in 2022 and received tax credit. A couple of weeks ago 3 panels were damaged during a hail storm - can I get tax credit for replacement' expense?

[Bsch4477]

You can only claim the solar energy credit once. 

[Opus 17]

That's unclear.  You may want to seek local professional tax advice.

It is clear that repairs are not allowable.  It is also clear that installation of new capacity in a future year is allowable, as that would be a new system, even if it is tied into the old system. 

The law is not specific on end-of-life replacement or damage replacement.  (If the panels are at their designed end of life after 20 years and you replace them; or if you must replace--not repair--damaged panels.)

My opinion (and I am not a paid professional) is that replacing part of your system due to damage would be considered a repair of the system, and not installation of a new system.  Since it is a repair of the system, it is not eligible, even though it would be full replacement of the 3 damaged panels.  Each panel is a component of the overall system, like the inverter--you definitely could not claim a credit if you had to replace a damaged inverter, because it is just one component that repairs the system, so I don't think you can claim it on damaged panels. 

[Opus 17]

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@Bsch4477 wrote:

You can only claim the solar energy credit once. 

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As a blanket statement, that is not true.  You can only claim the credit once for each system you install, but there is no barrier in the law to claiming a second credit if you install a second system.  For example, in 2022 you install a system on your house, and in 2023, you install a second system on your detached garage or detached mother-in-law apartment.

However in this specific case, I believe this would be viewed as a repair of the existing system and not installation of a new system, so not eligible.