It Was a Great Day for Making Energy

This had to be one of our best power-cranking days ever (I don't know for sure because my computer recently crashed and I lost a lot of records).

This morning at 8:00 the electric meter read 17,915. At 6:00 p.m. it read 17,865. That means we generated a 50 kwh surplus. I'll bet we cranked out 60 kwh today.

It also means that despite a cloudy, snowy winter, we've generated as much as we've used since November. From now until air conditioning season we ought to see some primo surpluses every day that isn't cloudy. By the time we turn the A.C. on I expect we'll have wound that meter


backwards








to August or so...










8:00 a.m. 17,915
6:00 p.m. 17,865

Are SRECs taxable? The Accountant Speaks

I've made several posts already about whether or not SREC income is taxable or not.

I talked and emailed with my accountant recently.


Here's what he wrote: "I think it will eventually be taxable but there is no ruling at this time."

That's consistent with everything I've read and posted, in that there really is no definitive statement by any authority on the issue. My plan is to consider it non-taxable until I hear otherwise.

By the way -- it's been so sunny this week that our meter is spinning backwards at a velocity that reminds me of summertime!

February: One More SREC Sold

We sold one SREC for February. It was so cloudy and snowy that I'm surprised we generated enough power for even one. Some of that was probably left over from January.

The selling price was the highest yet, $ 665.

Is SREC Income Taxable?

I asked SRECTrade this question. It turns out that this is as murky a question as we suspected. They sent me an informative blurb, which consists in part of a post from a blog similar to mine that originates in Maryland (great resource by the way, check it out: www.solarpvhome.com).





Here's a link to the blurb from SRECTrade:

http://www.srectrade.com/blog/srec/taxes

The position of Michael, the Maryland solar blogger, is that SREC income is not taxable because a profit on the solar electric system will not be generated until the entire system is paid off.

SRECTrade recommends consultation with a professional accountant but adds this:

Is the income generated from SRECs considered taxable income?

Questions constantly arise regarding the tax treatment of SRECs and it seems that no legislative body or government agency has explicitly answered the question. For example, the New Jersey Office of Clean Energy, the pioneer in SREC markets, provides the following information in their FAQs:

Is SREC income taxable? Will I be issued a 1099 if I sell my SRECs? Is there sales tax on an SREC?

- There is not a definitive ruling on this issue. We recommend you discuss the issue with your tax accountant and perhaps a tax lawyer.

SRECTrade doesn't even issue 1099 forms.

My plan is to hand the issue to my accountant and let him decide. Based on what I've seen here my own opinion is that the income is not taxable.

Edit: see the March 20 blog post. That's where I decided that for me, SREC income is not taxable.

1 SREC Sold for January

We generated enough power for 1 SREC in January, which sold at auction for $660. As far as I'm concerned that makes the system $660 closer to paying for itself.

Thanks again as always to SRECTrade. I didn't have to do a thing except notice the deposit in my account.

Folks, if you're putting in a system, make sure to shop around before choosing somebody to broker your SRECs. There are vast differences between the terms of the agreements they'll want to make with you. If your installer is trying to hook you up with a particular broker, chances are they are getting something out of the deal. That doesn't mean it's the right deal for you.

Survived the Big Wind

The panels survived another durability test earlier this week when we experienced a day of violent wind. There were a lot of loose shingles blowing around the township (but none of mine, as it turns out). The winds were so strong that they did this to Washington Township High School just a few miles away:

Strong winds peeled sections of the roof off piece by piece until rain was falling into classrooms. The damage was so bad that classes were dismissed, everybody was sent home in the rain and school was cancelled the next day so the roof could be repaired.

From Fox News:
In New Jersey, Washington Township High School is closed. Fox 29's Steve Keeley reports a portion of the school's roof was peeled off by high winds. Heavy rain poured into several classrooms. Students were evacuated and sent home Monday just before lunch. It's not clear when classes will resume for the 3,000 students, faculty, and staff.

We sustained no damage at all to the panels, which started cranking out juice as soon as the sun came out the next day. That's a relief.

Clouds + December = No SRECs

Since I was bragging a few weeks ago about selling SRECs it's only fair that I report that we didn't earn any full SRECs this month and so had none to sell in the auction. This time of year is the slowest period for solar to begin with because of the short days and the low sun. On top of that, it was very cloudy. Hopefully we'll have two or three next month...