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Solar tax credit on used equipment install?

Hi there!

 

I'm looking at my options to install solar affordably and one option includes purchasing some used pieces to save a significant amount overall.

 

My question is: is only NEW equipment allowed to be claimed on the solar tax credit, or can USED equipment be included since it would be new to my installation? And how would the government know either way if it's not allowed (do I provide SN# for everything or ??)

 

For example: I purchase panels that came from a system where someone upgraded or removed solar from their existing install. Or purchasing an inverter from someone who upgraded to a larger inverter.

 

I hope this helps, thanks!

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2 Replies
AnnetteB6
Employee Tax Expert

Solar tax credit on used equipment install?

In reviewing the IRS Instructions for Form 5695, there does not seem to be a requirement that the equipment installed be new with your installation.  There would be no serial numbers included with the filing for the credit, so unless the IRS requested further information there would not be anything reported that would show the equipment's first use was not with you.

 

 

@proudapron

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Solar tax credit on used equipment install?

Thanks for your help! This would be excellent news for saving even more 🥳

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