Comments on: Long-term ITC extension, standalone storage and direct pay: What’s in the IRA

By: Lance Clyce

Lance Clyce — Wed, 25 Jan 2023 13:29:26 +0000

Kelsey……..Good morning. The ITC direct pay that non-profits qualify for……..do you know if those are transferable to a bank if the bank wanted to write a lease back to the non-profit? We are a broker for commercial solar financing and have recently been asked about churches qualifying for equipment leases where in the past they could not.

By: Kelly Pickerel

Kelly Pickerel — Fri, 23 Dec 2022 15:36:04 +0000

In reply to David Clouse.

Not yet, but here is some info: https://www.solarpowerworldonline.com/2022/12/how-the-inflation-reduction-act-will-help-more-nonprofits-go-solar/

By: David Clouse

David Clouse — Thu, 22 Dec 2022 18:35:27 +0000

Thank you Kelly! Great article. Is there any word on how the ITC payouts will happen with non-profits?

By: David Strevel

David Strevel — Sun, 30 Oct 2022 00:58:36 +0000

Kelsey, I’m the manager for a new solar panel installation on my church, a non-profit organization. I hope to qualify for the 30% ITC with direct payment but am unclear about how the timing of our installation might enable or prohibit the payment. Our status now (October 29, 2022) is that our project has received zoning approval and the contractor could put the panels on the roof in November of 2022 or later. After installation, the project must get city approval, Duke Energy approval, the two-way net meter must be installed, then the system must be “commissioned” for its first day of power generation. Do we still qualify for 30% direct-pay if all these steps occur during 2022, or must we delay commissioning till on or after January 1, 2023?

By: Larry G Gillen

Larry G Gillen — Fri, 26 Aug 2022 20:12:47 +0000

Thanks Kelsey and appreciate the feedback here on the questions. Would the 30% ITC Direct Payment from IRA apply to a 2022 solar installation on a property owned by a non-profit tribal university? And, would the additional 10% for Native American apply?

By: Kelsey Misbrener

Kelsey Misbrener — Wed, 24 Aug 2022 19:42:36 +0000

In reply to Joe Brookman. Thanks, Joe! It is active for 2022.

By: Joe Brookman

Joe Brookman — Wed, 24 Aug 2022 18:56:17 +0000

Kelsey,
Great solar article! Quick question:
Does the solar 30% residential credit kick in now or do I have to wait until 2023 to install solar on my home?
Thanks and keep up your good work.
Joe

By: Ben

Ben — Wed, 24 Aug 2022 18:48:27 +0000

Kelsey do you have an more detail on how the following categories for the additional Commercial ITC credits are defined? Are there formal definitions for any of these:

“Energy Community” (10%)
low-income community (10%)
qualified residential building project (20%)

Thanks 🙂

By: Kelsey Misbrener

Kelsey Misbrener — Tue, 23 Aug 2022 11:59:17 +0000

In reply to Joe. Hi Joe, my sources say resi customers have one year for carry over — which is existing law and did not change.

By: Kelsey Misbrener

Kelsey Misbrener — Mon, 22 Aug 2022 19:10:12 +0000

In reply to Steven Villarreal. Hi Steven, yes, that's correct.

By: Kelsey Misbrener

Kelsey Misbrener — Mon, 22 Aug 2022 19:09:42 +0000

In reply to Abel Goddard.

The residential standalone storage ITC would apply for a new storage installation over 3 kWh. As far as getting credited for additional panels, DOE says, “The credit can only be claimed on the ‘original
installation’ of the solar equipment.” https://www.energy.gov/sites/default/files/2021/02/f82/Guide%20to%20Federal%20Tax%20Credit%20for%20Residential%20Solar%20PV%20-%202021.pdf

By: Kelsey Misbrener

Kelsey Misbrener — Mon, 22 Aug 2022 19:05:35 +0000

In reply to Elliott. Hi Elliott, I checked on this with a tax attorney who said, "The extension of the 30% ITC generally applies to any project construction of which begins before 2025, other than projects construction of which began in 2020 or 2021 and that were placed in service before 2022." So sounds like yes?

By: Kelsey Misbrener

Kelsey Misbrener — Mon, 22 Aug 2022 19:04:20 +0000

In reply to Brad Heric. Hi Brad, per SEIA, I believe all we know right now is they "must include 100% domestic iron/steel and an increasing percent of manufactured goods over time."

By: Kelsey Misbrener

Kelsey Misbrener — Mon, 22 Aug 2022 19:03:07 +0000

In reply to John Miller. Hi John — the 30% ITC only applies to standalone storage that is placed in service after December 31, 2022.

By: Steven Villarreal

Steven Villarreal — Fri, 19 Aug 2022 21:54:43 +0000

This is fantastic — thanks for such detailed analysis. Commercial opportunities. I saw some data that indicates that development on Native Amercian lands could increase the ITC an additional 10% – can you confirm that ?