Solar Tax Credit Information for the 2023 Tax year -- Useful Resources

 Let's start out with the disclaimer that you must rely on your trusted Tax Professional.   They will be the one answering an audit questions, not us.    But also be aware, I suggest even if you are farming your taxes out that you read through this and try to Grok it.   All the forms and instructions are at the bottom.

HINT: Don't let your eyes glaze over, there is a lot of information here, but I have put it into a really actionable format.   It's not that hard, except for the Hawaii N-342 claim for multiple system based on wattage, and that is only when you are trying to claim for than $5000 in this year.   Hawaii provides the calculator online to properly fill this form, and most likely your accountant can do it.   It's totally not intuitive, but the formula works.

I want to start out with a major change:   The Feds had a decades old policy on energy efficiency for insulation, air-conditioning, capped it at $600 total per property, per lifetime of the property, this was pretty sad and annoying.   Well they just changed it.   And now it is 30% of total cost, up to $1200 per year.    Big thing for efficient Air-conditioning, and esp. PV Air-Conditioning. 

FED FORMS

 

 

STATE FORMS

 

 

 

 

If you do your own taxes, and this blog post doesn't get you to to the finish line on the Hawaii N-342, I can charge you $150 to do the form for you, and you will remain responsible for it since we are not licensed tax accountants.

It can be an advantage to split your credit claim into 2 different years if the contracts or work really did happen in 2 different years....it makes it less likely that they will delay payment or audit you if you are submitting a smaller number in any particular year.

If your tax person makes a mistake it can do:

1) Get you less than you deserve

2) Get you audited if they fill out the forms wrong, or especially if they don't use the Calculator on Page 2 of the Form N-342 (revised 2023) for your State Hawaii return, and turn in the number of forms N-342 that you need to get the maximum benefit.   The number of N-342 forms shall be dictated by the size of your PV system in total wattage (they actually want kilo-watts or 1000 Watts).   You must know the Wattage, it may be listed on your proposal or Quickbooks statement, if not ASK us.   

It took me a few hours to bone up on the Tax Credit forms for Federal and State, since I had not done so for years.    I also had to spend hours with my personal and business expert tax preparer to figure out how to claim on a  Solar PV Air-conditioning system for myself (Hint it gets broken into 2 pieces, the PV array, and then the air-conditioner itself..    I also did another Large PV Aircon in 2023. 

A close look at the annotations below and if need be, a call to Steve should clear up how to handle the tax credits on:   But please send the link to this page to your tax person and read the instructions through to, then if you are stuck, call Steve.

1) Solar PV Air Conditioning

2) Solar PV Electric Power

3) Solar Integrated with Battery Storage

4) Solar Attic Fan

5) Solar Hot Water

Its 9:30 PM so I am going to post this up now and add more later

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Here is the latest N-342 for 2023 -- They did update it in 2023, only the instructions, the N-342 is exactly the same as in 2020.

Hawaii Instructions N-342.   The Hawaii credit is better than the Federal Credit, but is more complicated.

https://files.hawaii.gov/tax/forms/2023/n342ins.pdf

Hawaii Form N-342

https://files.hawaii.gov/tax/forms/2020/n342_i.pdf

Federal Instructions for 5695

https://www.irs.gov/pub/irs-pdf/i5695.pdf

Federal Form 5695

https://www.irs.gov/pub/irs-pdf/f5695.pdf

 

PV Solar Upgrade Special Program -- Upgrade Legacy Solar to Modern Solar, and There Is A Huge Difference

You have a "Legacy" Solar System?  Like over 12 years old?   You can't tell how well it's working or if it's even working at all?  This is a NEW PROGRAM not offered before.

Now is the perfect to replace them with the new technology, more efficient, more savings.   And a fresh 25 year warranty.    The new technology is ------- 7th Generation 7 IQ Microinverters.

These new systems have awesome monitoring and reporting capabilities.   You can see exactly what they are doing, even down to a per panel basis. 

Interested?  Enquire by Email Here solsen@pacific-energy.com

Let’s say you had a $35,000 car, and you had 70,000 miles on it and it was started to nickel and dime you with a bunch in repairs.    If the dealer came to you and said, heh, for $2000, we will give you a new car, with a 25 year warranty……WOULD YOU TAKE THAT DEAL?

REALLY? IT GETS BETTER!? 

7IQ Upgrade – (4) Bullet Points to Understand it – It’s a complete component rebuild on the roof.      New Inverter on the Roof, New Wiring on the Roof!

1. You can get the Government to pay for up to 65% of your upgrade.  
2. Protect your family from Inflation!
   
3. We re-use your existing panels, we can replace panels too, but that gets pricey.
   
4. The micro-inverter company is offering special packages to contractors to help replace the legacy, large, heavy, bulky, and un-monitorable Central inverters.
   
5. Our package includes all new wiring on the rooftop, bigger wires and more efficiency, less I-squared-R line losses.
   
6. Your warranty, which is probably long gone on the central inverter, is replaced with a fresh 25 year warranty!!!
7. The new MICRO-Inverters are "Battery Ready", The old legacy equipment will never be "Battery Ready."   But you don't need to get batteries to get this uprade, it;s just a better option for the future.    Call Steve to discuss, battery costs and quality and longevity have taken huge strides forward.    And Enphase has rolled out their "Plug and Play" battery system, that is designed from the beginning to work seemlessly with the new 7IQ Inverters!
8. The new monitor called a Gateway (EMU/Envoy) reports your production data in near real time (15 minute intervals).   You can fully monitor what is going on, and we can too.
   
   
   
   

The 7IQ Upgrade program is like getting that NEW CAR, at 10% of the cost!
Interested?  Enquire by Email Here solsen@pacific-energy.com

We have done around 180 of these upgrades and we have 180 very happy customers!  

Up until 2024, Enphase would only offer their contractor the special packages to replace their oldest and first microinverters, that were killing the owners and their company with warranty cost. 

Now they are more aggresive, and are trying to take over the OLD central inverter market share.  

If you don’t know what kind of system you have, just enquire solsen@pacific-energy.com

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We expect some stuff to break, as that is just the way Murphy works, and we will cover all miscellaneous small part breakage, up to $400 per customer.   We have never had to charge an extra fee because "too many parts broke".

Interested?  Enquire by Email Here solsen@pacific-energy.com

 

Additional Benefits:

8. Safety First: Emphasize the safety aspect of the Enphase micro-inverters, which operate at lower voltages compared to traditional central inverters, reducing the risk of electrical hazards.
9. Modular Design: Highlight the modular design of micro-inverters, which allows for easy expansion or maintenance. Unlike central inverters, if one micro-inverter fails, it doesn't affect the entire system's performance.
10. Enhanced Shade Tolerance: Micro-inverters optimize the performance of each solar panel individually, making the system more resilient to shading issues compared to central inverters.

 

Revitalized Benefits:

1. Optimized Solar Output: Ensure maximum efficiency and power generation by upgrading to Enphase 7th generation micro-inverters. Combat annual degradation and cosmic-ray damage with cutting-edge technology that shields against energy loss.
2. Streamlined Technology Upgrade: Upgrade from outdated, cumbersome central inverters to the sleek and efficient Enphase micro-inverters. Bid farewell to the hassle of servicing old technology and embrace a future-proof solar solution.
3. Real-Time Performance Monitoring: Gain control and peace of mind with real-time system monitoring. Track each panel's performance, ensuring your solar setup operates at peak efficiency. Receive immediate alerts, allowing swift response to any issues.
4. Robust 25-Year Warranty: Invest confidently with Enphase's 25-year warranty. With over 5000 installations and zero failures, experience the reliability of 7th generation micro-inverters. Even apparent issues were swiftly resolved through simple firmware updates.
5. Proactive System Oversight: Benefit from Pacific Energy's vigilant oversight, conducting thorough system reviews multiple times a year. Receive timely alerts for any irregularities, ensuring your solar investment continues to thrive.
6. Tax Credits for Immediate Returns: Seize the opportunity to invest in yourself. Secure significant tax credits swiftly, potentially reducing the net cost to as low as $1000 to $3000. Allocate your money wisely and watch your investment grow.
7. Inflation-Proof Investment: Shield yourself from inflation, especially in the energy sector. Embrace 7th generation micro-inverters as a robust defense against rising energy costs and position yourself for long-term financial stability.

 

 

2024 Sale! Solar Hot Water Tuneup, Good Through Feb 28, 2024

 

2024 Solar Hot Water Tune-Up: Enhance Efficiency, Extend Lifespan

Why Solar Tune-Up? Ensure peak efficiency, prevent costly repairs, and maintain warranties. A critical service to be done every 3 years.

Benefits:

• Peak Efficiency: Save on energy costs
  
  
  
• Avoid Costly Repairs: System changeouts can cost $5,000 to $6,000, with panel changes up to $2,000 each

Easy Scheduling: Simply email [solsen@pacific-energy.com] or call (808) 265-5971. We'll make it happen!

Limited-Time Sale Price: $300 (Tax Included) (Regularly $525 + tax)

• Cash Discount: $270 (with on-the-spot receipt)

Why is it Crucial? Failure to maintain can lead to a ruptured house piping system, costing $12,000 or more for repairs.

What's Included:

1. Sacrificial Anode Rod: Prevents rusting
2. Pressure & Temperature Relief Valve (P&T): Avoids bursting pipes
3. Pressure Relief Valve: Protects panels and pipes
4. UV Coating: Preserves rooftop insulation
5. Pipe Resealing: Strong leak protection
6. System Flush: Ensures optimal performance

Additional Services:

• Check on system components
• Inspection of controllers, pumps, and temperature sensors

Why Choose Us?

• We replace crucial parts, not just anode changes (like the other guys)
  
• Complete system check for reliability
• Thorough flush for optimal performance

Don't Miss Out on Added Value!

• Solar Attic Fan: Additional $150 discount
• Comes with a 25-year warranty
• Net cost after tax credits in asphalt shingle is around $380

Schedule Your 3-Year Preventive Maintenance Today! Email solsen@pacific-energy.com or call (808) 265-5971.

Limited slots available. Act now to secure your spot at this unbeatable price!