Solar Panels and Depreciation

[Kris L.]

So I have been trying to sort through the information on solar panels.

I’m planning on getting solar panels installed on my primary residence. This system should get a 26% federal tax credit on the system cost. The system will be on a 0 down, 2% interest 25 year amortization, with no lien. I also get an appraisal boost of 50% of the system cost.

From my understanding, I can’t depreciate the panels on my personal residence, but, if I were to convert this place to a rental after a couple years, could I then depreciate them?

Would I be able to lease these panels out to my tenant, separate from their residential lease?

Is this just a terrible idea to begin with?