Residential Solar Panels Credit and Business Schedule C?

[taxprep19]

My client purchased solar panels.  The solar panel company informed them that they could treat the purchase of the solar equipment as income-producing property and report depreciation and related expenses on a Schedule C.  The basis for this treatment rests with the fact that the taxpayer entered into a formal agreement with the utility company to sell the power generated by that solar equipment back to the utility.  These are referred to a Net Metering Agreements and they specify the rate and terms of the reimbursement of power generation.  Produced power flows back to the grid and is sold to the utility company.  The utility company reimburses the power production in the form of a financial credit to the customer account.  As such, the sale of that power can potentially be considered a taxable event.

Has anyone heard of this?  Or better have any experience preparing a Schedule C for this.  I'm skeptical

[TaxGuyBill]

Some salesman use that tactic to sell panels.  I think most tax preparers will just say "no".  In my opinion there are definitely circumstances that it can qualify as a business, but the "Net Metering" agreement significantly reduces that chance.  "Net Metering" means the taxpayer is personally using the energy, then sells any "extra" that they may have.

*IF* they treat it as a business, then ALL of the electricity produced would be income (not just the 'net') and whenever the business becomes profitable it will be subject to SE tax.