How do I enter in solar panels?

mgreenberg · November 2020

Here's my situation:
• I installed solar panels for my roof.
• I took a loan to pay for the system.
• The electric company pays me for the electricity I generate

How do I reflect all of this in Quicken? I guess the system is an Asset with a Loan against it, but how do I keep track of how much money this asset is generating?

Thanks in advance :)

Tom Young · November 2020

Setting up the solar panels in an Asset Account and the loan in a Loan Account is the correct approach.

In these situation where you get credit back for electricity generated that goes to the utility, I probably would account for that as a form of contra-expense. So assuming you have an "electricity" utility Category you could either simply continue to use that Category as a reduction of your electricity expenses or create a sub-Category for the electricity Category and place the credit there.

Frankx · November 2020

Hi @mgreenberg,

Yes, the installation of the system would typically be treated as a home improvement. You could set that up as an "addition" to your "Home" asset account, which I think would be preferable, or as a new "asset" (both of which should be in in the Property and Debt" section). And, I also agree that a loan account should be setup in that same section.

As far as the income that is generated (i.e. - the payment from the electric company) you could record that in 2 ways:

a) You can setup an income account - call it "solar panel income" - which would likely be the easiest way to be able to see that number on both a monthly and over-time basis;

b) You could also just apply it against your electricity expense each month - which effectively would offset that monthly utility, and this may be the easier approach, especially if your electric company is handling it this way already (i.e, - they offset your monthly electric bill rather than send you a check each month).

Let me know if you have any followups.

Frankx

[edited for minor typos]

Rocket J Squirrel · November 2020

Frankx said:

You could set that up as an "addition" to your "Home" asset account, which I think would be preferable

This is what I did when I installed solar. I use my "House" account to track my adjusted basis, not estimated value of the home.

The amount paid for the system increased my basis in the house by the amount spent. The federal income tax residential energy credit taken decreased the basis by that amount.

mgreenberg · November 2020

Thanks for your quick and helpful answers!

How do I enter in solar panels?

Answers