Taxes impact payback from solar installations

Apr 9, 2013

To the editor

I would like to direct the members of the Marion Energy Management Committee to the United States Department of Energy’s informative publication   "A Guide to Community Shared Solar: Utility, Private, and Non Profit Project Development.” It’s available on the department’s website, www.energy.gov.

Solar installation tax and securities laws complexities are discussed. It’s very informative reading for anyone looking for good information on the complexities of these transactions.  Specify referenced in this publication is the Brewster Solar Garden structure, cited by Bill Saltonstall in his recent opinion letter.

Now, in the height of tax season, it’s also important to call attention to the Internal Revenue Service ruling that solar energy credits are to be included in adjusted gross income for tax purposes. The taxation of these credits will impact any calculation of a solar investment’s payback and rate of return.

For most Marion residents an annual investment to their Roth IRA would be the better investment than in any solar installation.

Ted North
Marion