[Anonymous]

My company purchased Solar Panels for our many facilities. If your company has Solar Panels, how many years did you depreciate them? Thanks for any feedback in advance!

[Mary 2496]

I'm almost positive it's five years but double check the IRS website.

[Tripp11]

As a cross reference, the American Hospital Association Estimated Useful Lives manual has solar equipment at 10 years.

AUD - 93
BEC - 80
REG - 86
FAR - 83

[Anonymous]

I think Mary has it. IRS.gov puts “energy property” in the 5 year class. The only definition I could find of energy property is from Cornell's website. It seems believable.

https://www.irs.gov/pub/irs-pdf/i4562.pdf

https://www.law.cornell.edu/uscode/text/26/48#a_3

[koz124]

This is interesting as I work at an energy utility and the hot topic is the number of cooperatives building solar gardens for their members. Each member “owns” the output of the panels they buy for 20 years. However, it does look like the government states 5 years as the life for energy renewable items. Since we have not yet started our solar garden venture, I have little experience to offer, but I'd be intrigued to hear others.

Studying with Wiley Review, Wiley Test Bank, Ninja Audio.
Retakes with Ninja MCQ only...awesome!
Far - 1/28 72, 7/22 79
Aud - 2/28 70, 8/14 83
Bec - 4/10 80
Reg - 5/30 64, 7/2 82

[Anonymous]

Thanks! That was helpful!

[Anonymous]

Oh man, what happens to the basis if you take any credits on energy products like that? Do credits not reduce basis unlike something like bonus depreciation?

[Author]

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