TFS Build: `Microsoft.TeamFoundation.PowerShell' is not installed on this computer

Question

When I'm logged in to tfs build server using local account and execute following powershell command:

Add-PSSnapin Microsoft.TeamFoundation.PowerShell

it loads the tfs cmdlets correctly. However, when I trigger a build on tfs server that invokes the script, it fails with message:

'Microsoft.TeamFoundation.PowerShell' is not installed on this computer.

The build agent runs under service account. What should I do?

EDIT: I had to edit the reqistry entry from the first link in @Alexis Coles' answer to make it work with version 2015 of TFS PowerTools:

Windows Registry Editor Version 5.00
[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\PowerShell\1\PowerShellSnapIns\Microsoft.TeamFoundation.PowerShell]
"PowerShellVersion"="4.0"
"Vendor"="Microsoft Corporation"
"Description"="This is a PowerShell snap-in that includes the Team Foundation Server cmdlets."
"VendorIndirect"="Microsoft.TeamFoundation.PowerShell,Microsoft"
"DescriptionIndirect"="Microsoft.TeamFoundation.PowerShell,This is a PowerShell snap-in that includes the Team Foundation Server cmdlets."
"Version"="14.0.0.0"
"ApplicationBase"="C:\\Program Files (x86)\\Microsoft Team Foundation Server 2015 Power Tools"
"AssemblyName"="Microsoft.TeamFoundation.PowerTools.PowerShell, Version=14.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a"
"ModuleName"="C:\\Program Files (x86)\\Microsoft Team Foundation Server 2015 Power Tools\\Microsoft.TeamFoundation.PowerTools.PowerShell.dll"
"CustomPSSnapInType"="Microsoft.TeamFoundation.PowerTools.PowerShell.TFPSSnapIn"

[HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\PowerShell\1\PowerShellSnapIns\Microsoft.TeamFoundation.PowerShell]
"PowerShellVersion"="4.0"
"Vendor"="Microsoft Corporation"
"Description"="This is a PowerShell snap-in that includes the Team Foundation Server cmdlets."
"VendorIndirect"="Microsoft.TeamFoundation.PowerShell,Microsoft"
"DescriptionIndirect"="Microsoft.TeamFoundation.PowerShell,This is a PowerShell snap-in that includes the Team Foundation Server cmdlets."
"Version"="14.0.0.0"
"ApplicationBase"="C:\\Program Files (x86)\\Microsoft Team Foundation Server 2015 Power Tools"
"AssemblyName"="Microsoft.TeamFoundation.PowerTools.PowerShell, Version=14.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a"
"ModuleName"="C:\\Program Files (x86)\\Microsoft Team Foundation Server 2015 Power Tools\\Microsoft.TeamFoundation.PowerTools.PowerShell.dll"
"CustomPSSnapInType"="Microsoft.TeamFoundation.PowerTools.PowerShell.TFPSSnapIn"

Double check AssemblyName, ApplicationBase, ModuleName and Version entries. Script above works with Microsoft Team Foundation Server 2015 Power Tools

Answer 1

I had this issue and to solve I notice that by default the cmdlets are not added during the PowerTools installation. You need to run a full install to make it work.

I posted here some pictures: https://fabiostawinski.wordpress.com/2016/07/11/the-windows-powershell-snap-in-microsoft-teamfoundation-powershell-is-not-installed-on-this-computer/