This episode covers the special accounting issues pertaining to the solar power industry. . A renewable energy certificate represents the environmental attributes of one megawatt-hour of electricity that's been generated from a renewable energy source. Care should be taken when accounting for these assets because while they are. . The creation, sale, and use of RECs results in a number of challenging accounting issues including contract accounting, revenue recognition, and cost allocation. . What accounting items should be recorded for solar energy The accounting for solar energy involves various financial aspects that require meticulous attention. Among the significant items recorded are intangible assets that encompass potential solar power contracts, licenses, or patents related to. . With the Inflation Reduction Act of 2022 (“IRA”) and increased focus on climate sustainability, there has been immense interest from international and U. As solar and other renewable energy industries experience significant growth, it's a. . According to the Solar Energy Industries Association (SEIA), solar installations are projected to grow by an average of 21% annually through 2026, with the industry now employing over 250,000 Americans. With this growth comes increased competition and tighter margins, making effective bookkeeping. .
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