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Discover the 5-year IRS depreciation life for solar panels. Solar energy systems installed for business or investment purposes qualify as depreciable property under the Internal Revenue Service (IRS) code. This. . Depreciation refers to the reduction in value of an asset over time, and for solar panels, this process can have substantial implications for your tax liabilities and overall return on investment. Depreciating solar panels allows property owners to recover the cost of their investment over time. . Solar photovoltaic (PV) panels deliver a host of financial and environmental benefits to businesses looking to reduce energy spending and shrink their carbon footprint. If the cost of a photovoltaic system is $ 100,000 and is 20 years old, the annual depreciation will be: Annual Depreciation = Total Cost /. . The IRS allows businesses and individuals to depreciate the cost of their solar energy system over a set period.
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