Solar Shift: An Analysis of the Federal Income Tax Issues Associated With the Residential Value of Solar Tariff

Abstract

In the years since renewable energy technologies were deployed as an alternative eney source, solar eney continues to aid in reducing carbon dioxide emissions. To date, solar technologies are emerging as an increasingyl useful source of elecricit. Additionaly, solar technologies also provide signjcant benefits to the environment as well as various solar stakeholders across the nation. Of particular importance here, photovoltaic technologies (common'y known as 'olar panels" or 'olar sstems') are espeaialy useful to the residential solar sstem model. Although this residential modelprovides the aforementioned significant benefits, as solar stakeholders consider shifting from using the traditional net metering rate design to the newer value of solar tanjf ith the residential model, they must also consider the federal income tax consequences of such a shift. Thus, this paper examines the importance of the resident-utiit agreement's structure in assessing the feasibiiy of this shit. J