Many experts argue that the income from SREC sales is income and needs to be reported as such on your taxes. If you report it as income, you should be able to deduct the cost of your PV system from your taxable income. Others argue you don’t need to report it as income until you’ve sold enough SRECs to offset the cost of your PV system. Consult a tax professional for advice, as the IRS has issued no guidance and qualified tax professionals won’t give generic advice to the public.
