Tesla Powerwall and Tax Deductible Information

Tesla Powerwall and Tax Deductible Information

Installing a solar power and storage system in your home puts you in line to earn some substantial deductions or credits when you file taxes. The purpose of these credits is to pay you back for out of pocket expenses, like installation and labor, and incentivize more people to install the Powerwall and Solar Roof. What are some of the tax deductions you get with the Powerwall?

Installing a Powerwall could take time and have requirements that you weren’t expecting. These requirements must be met before you can get the credits, and even then, credits could expire or be denied because of installation times. Don’t sweat it! Read on and learn what it takes to get the tax deduction with your Tesla Powerwall.

The Tesla Powerwall Tax Deduction

The strain put on a large city’s power system can cause rolling blackouts and brownouts that could paralyze the city. States with large populations have been handing out tax credits for installing solar power since the late 1990s. The uptick in home solar powering has lots to do with Tesla and their phenomenal solar panels.

A Tesla Powerwall is a charging system that allows you to be completely off-grid, even in urban areas. When paired with the Solar Roof, it enables you to live a life of comfort without hurting the environment or crushing your bank account. One of the main stipulations for the tax credit is that your Powerwall is 100% renewable. There are exceptions in the State laws, but Federal law only allows the credit if it is renewable.

Renewable means that you aren’t tapped into the city’s power grid. Some generators work only with gas or an electrical component like the Powerwall and solar panels. The Powerwall can take charge from the grid, but if you want the tax deduction credit, you should keep it running off the power that is taken in by the solar panels.

Requirements for the Powerwall Tax Deduction

Like any other tax requirement, you will have to meet the standard to get the money back in your return. Check your state’s tax laws since they could also give you a break that could meet or exceed the one you get from Uncle Sam. As always, have documents ready to email along with your return to prove they exist.

Some states have no deduction in the works or on the books. You must take the time to search out all the requirements for operating the Powerwall as a battery in your home. If your state is one that doesn’t allow a deduction, you could be in for lots of extra fees and even fines if you remove your house from the grid without authorization.

The requirements of the Powerwall Tax Deduction are:

  • For Homes – In your home, the 100% renewable law is good for any home across the country. In some states, the rebate hasn’t been fixed into the tax code as yet. Federally there is a 26% deduction for the cost of installation of a Powerwall. Some states, like California, will meet the federal deduction making the price more than 50% off.
  • For Commercial – Business owners are using more solar for their storefronts and shops. For the deduction, your business must use at least 75% renewable energy. This allows for solar panels and PV stations to use but still has power if there is a natural disaster or citywide emergency.

Across the country, there are pockets of eco-friendly people straining against their local governments’ reigns. They want to remove themselves from the grid but have no idea where to start or what it will cost them. Explore the lifestyle before you jump in because some of these fees can be staggering and out of reach for some families.

Like most tax codes, there is always going to be a wrinkle. This deduction is set to expire in 2022, with no deduction for solar energy of any kind in the works. If you are installing a solar panel system, you could have to wait before the credit becomes available. Some states base the deduction off of time since installation.

Tax Laws in California are a Clean Energy Model for America

Clean energy is a way to move technology forward, and Silicon Valley is often at the forefront of American technology. The state has gone out of its way to give these companies the edge they need to make products that enrich our lives. Solar panels are the California tech industry’s bread and butter, and the government is behind them 100%.

When it comes to using clean energy and doing what is best for the environment, California is one of the standard-bearers. They enact laws that reverberate around the nation and often become federal policy. One of their best and most profitable rules has been the Solar-Generation Incentive Program (SGIP).

The Steps to Apply for the Solar Generation Incentive Program

When it comes to getting in line for the SGIP, there are a few things that you must have in order to start filing for the rebate. Jumping through hoops and having paperwork ready at a moment’s notice is something you must become accustomed to. There could even be visits from a local inspection officer that could make or break your chances for the program.

The Steps for SGIP are:

  • Proof of Purchase – Once you have purchased your Powerwall and have the installation date, you can contact the SGIP office about the refund. They will set the ball rolling and possibly connect you with a licensed installer. This paperwork will set aside the money in their budget to start payments in the next fiscal session.
  • Get Your Wall – A company certified by Tesla will come out and install your Powerwall. Once the wall is up, you will be able to save enough energy so that you can still be comfortable inside if there is an outage or a low generation day. Check around with the settings to see which works best for your home.
  • Tesla Paperwork – A big part of the Tesla outreach program is working with local governments to ensure that all the proper paperwork is in place. That means that a rep will contact your city or state government and back-up your Powerwall installation.
  • Here Comes the Cash – This last part is easy, just collect the money. Now that all the I’s are dotted and the T’s are crossed, you can recoup some of the money you spent on the Powerwall. There could even be deductions that come for several years and reduce the machine’s cost by 50%.

Now that the Powerwall has become more common, the tax deduction for them is beginning to die out. There was almost $6,000 a year being doled out to install the wall alone at its height. Paired with the Solar Roof and installed in successive years, you could net almost $11,000 in your refund.

The SGIP is Beneficial to Everyone On and Off the Power Grid

When the brilliant minds set up the SGIP, they had the intention of easing an overstressed power system and cutting down on factories that produced an obscene amount of greenhouse gases. They aim to ensure that you are recharging your machine at least once a week, or 52 times a year.

One of the great things about the design of the Tesla Powerwall is that it will automatically update to these standards. Remember that the wall is a battery and the panels are what charge the battery. There will be low power or high wattage times where the wall can run through its reset routine without disturbing your power status.

Time-Based Control is a Great Way to Reset Your Powerwall

Time-Based Control is Tesla’s way of creating a reset or discharge routine that meets the recycles’ SGIP standard. Power companies work by charging different amounts for power at other times of the day. TBC is an alternative to this model and allows the user to save more energy over periods by knowing when is the best time to charge.

Powerwall’s deductions are going to make the machine much more comfortable to own for middle-class homeowners. When you throw in TBC with the SGIP, the money seems to come right back into your pocket. Affordability and processes built-in to save cash for the family are what Tesla intended when they built their first panels.

Charging and Discharging is the Name of the SGIP Game

The number one thing that the SGIP wants to know is if your Powerwall is there just as a battery or if it is in service. Your battery must charge, take in power from the panels, and discharge that power every day. The discharge is what you get into the appliances in your home and outside. As long as your system discharges and charges once a week, you are fine.

Pay close attention to your Tesla App as the program allows you to check the system for discharges and informs you of the rate and status of your Powerwall. You can even set the times for the charge/discharge program to allow you to save money.

Annual Usage will Determine if You Get the SGIP Payments.

One of the most exciting things about the Powerwall is how much information you can get from the readout panel. The thing to look for when you are browsing is the Power Icon. Here you can check your power expenditure for any time of the day or month. Shoot for about 60 kWh used a day, as this keeps you over the 640 kWh barrier.

Your number of panels will be a great indicator of how much energy you can produce each day. Once you know how much power you can make on a perfect day, you will learn how much it will take to power your home electronics. Keep a list going until you can hone in on the correct production and usage average for best results.

Benefits of Having a Powerwall

One of the biggest things overlooked during the excitement and anxiety of a Powerwall installation is how much better the appliance is going to make your life. Sure the extra money in your account is swell, but what else does the wall do that we haven’t noticed yet? Once the Powerwall is in place, you can expect several significant changes.

The Powerwall and Solar Roof Make Your Home Self-Powered

The power combo of roof and wall is going to reduce your dependence on the city’s overburdened grid significantly. The panels alone are enough to supply power during the day, and once the battery is installed, they can power you up long into the dark time hours. Keep in mind that the Powerwall will still need to charge.

One of the hidden benefits of the Powerwall is how well it charges during peak hours. With time-based charging, you can tuck away energy when it is more prevalent than when it is not. For example, when there is lots of sun, you tuck away for those days when there isn’t as much sun or lots of cloud cover.

A Powerwall is Also a Great Way to Back up Your Home in an Outage

People across the country are starting to see the importance of having a backup power source. Fires and weather events are rampant across the country. Those reliant on medical technology in the home could suffer or even die from a lack of energy for their appliances. Having a Powerwall will act as a bridge between your home and the grid.

If you are doing a hybrid of panels and grid power, having a battery like the Powerwall is a way to keep constant power until it can be repaired. In middle America and the South, tornadoes can leave residents without power for weeks on end. Battery systems like Tesla’s are imperative for those with homebound illnesses and ailments during these crises.

The App Gives Total Control from Anywhere

Smart companies like Tesla often have innovations that other companies overlook. One of these innovations is the ability to control your Powerwall and Solar Roof from an app on your phone. If you are on vacation in Fiji and a storm happens in Montana, you can adjust the grid to prepare for the possible storm. Giving you peace of mind that other systems can’t is priceless.

Being able to fine-tune your Powerwall is going to be great for your home and the power grid. Another great thing is you can see how much power your home is using while you use the app. This setting allows you to see if the house is using an abundant amount of energy at certain times of the day.

Using a Powerwall Saves Money

The biggest thing about a Powerwall is the savings. The tax benefits have been mentioned, and there could be more money for you depending on which state you live in. The main bulk of the money you save is in the decreasing power bill. Over the years, the savings, whatever your bill was before minus what it is now, should equal what you paid for the system with the deduction.

Depending on the state, you could be repaid for the energy that you contributed to the system. When your Powerwall and Solar Roof are making energy, you could be compensated for excess energy that helps the struggling grid. Some states will have a kWh threshold, but you begin to see rebate money in your power bill or checks in your mailbox once it is met.

Powerwall’s Settings Keep You Weather Aware.

Powerwall is genuinely remarkable. In its internal workings, there’s a program that connects to the National Weather Service. Storm Watch will be notified of any weather events, and the Powerwall will adjust according to what weather is expected. This keeps lightning from invading the system while allowing storage in case of an outage.

Having weather events can force you to panic, and when you panic, you forget things. Storm Watch allows you to concentrate on keeping the family safe and not worry about the weather. Knowing that you can rely on your power system to help you when you need it most provides security that other backup batteries don’t have.

Does Tesla Offer Discounts on Powerwall?

Tesla solar is already the lowest cost-per-watt solar on the market, but are there any other ways to save money when ordering?

In short, the only way to get a discount on Tesla solar products is by using an existing Tesla owners “referral link” when ordering.

Tesla has did this same “referral program” concept with it’s vehicles and essentially it allows new customers to get a discount on their purchase by using an existing customers personal referral link.

In regards to Tesla solar discounts, using a Tesla referral link when ordering will save you $300 off solar panels or $500 off solar roof.

The referral discounts are typically only available for a limited time before Tesla stops offering the discount, so take advantage of the savings while you can.

tesla solar panel discount


The Tesla Powerwall is a brilliant innovation that will bring comfort and safety to your home during emergency power situations. It can also help to reduce or remove your footprint from city power and save you tons of money on the back end. The deductions can add up over time to remove half the cost of the machine.

Having a way to keep medical equipment on the grid during an outage could be the difference between life and death. The Tesla will change to fit the weather and can be focused on creating and storing power at different points during the day. Add in the tax deduction, and you have a cheap and reliable way to get power in a powerless situation.

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The articles here on ThatTeslaChannel.com are created by Greg, a Tesla vehicle and Tesla solar expert with nearly half a decade of hands-on experience. The information on this site is fact-checked and tested in-person to ensure the best possible level of accuracy.

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