Determine installed PowerShell version

Use $PSVersionTable.PSVersion to determine the engine version. If the variable does not exist, it is safe to assume the engine is version 1.0.

Note that $Host.Version and (Get-Host).Version are not reliable - they reflect the version of the host only, not the engine. PowerGUI, PowerShellPLUS, etc. are all hosting applications, and they will set the host's version to reflect their product version — which is entirely correct, but not what you're looking for.

PS C:\> $PSVersionTable.PSVersion

Major  Minor  Build  Revision
-----  -----  -----  --------
4      0      -1     -1

I would use either Get-Host or $PSVersionTable. As Andy Schneider points out, $PSVersionTable doesn't work in version 1; it was introduced in version 2.

get-host

Name             : ConsoleHost
Version          : 2.0
InstanceId       : d730016e-2875-4b57-9cd6-d32c8b71e18a
UI               : System.Management.Automation.Internal.Host.InternalHostUserInterface
CurrentCulture   : en-GB
CurrentUICulture : en-US
PrivateData      : Microsoft.PowerShell.ConsoleHost+ConsoleColorProxy
IsRunspacePushed : False
Runspace         : System.Management.Automation.Runspaces.LocalRunspace

$PSVersionTable

Name                           Value
----                           -----
CLRVersion                     2.0.50727.4200
BuildVersion                   6.0.6002.18111
PSVersion                      2.0
WSManStackVersion              2.0
PSCompatibleVersions           {1.0, 2.0}
SerializationVersion           1.1.0.1
PSRemotingProtocolVersion      2.1

You can look at the built in variable, $psversiontable. If it doesn't exist, you have V1. If it does exist, it will give you all the info you need.

1 >  $psversiontable

Name                           Value                                           
----                           -----                                           
CLRVersion                     2.0.50727.4927                                  
BuildVersion                   6.1.7600.16385                                  
PSVersion                      2.0                                             
WSManStackVersion              2.0                                             
PSCompatibleVersions           {1.0, 2.0}                                      
SerializationVersion           1.1.0.1                                         
PSRemotingProtocolVersion      2.1    

To determine if PowerShell is installed, you can check the registry for the existence of

HKEY_LOCAL_MACHINE\Software\Microsoft\PowerShell\1\Install

and

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\PowerShell\3

and, if it exists, whether the value is 1 (for installed), as detailed in the blog post Check if PowerShell installed and version.

To determine the version of PowerShell that is installed, you can check the registry keys

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\PowerShell\1\PowerShellEngine\PowerShellVersion

and

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\PowerShell\3\PowerShellEngine\PowerShellVersion

To determine the version of PowerShell that is installed from a .ps1 script, you can use the following one-liner, as detailed on PowerShell.com in Which PowerShell Version Am I Running.

$isV2 = test-path variable:\psversiontable

The same site also gives a function to return the version:

function Get-PSVersion {
    if (test-path variable:psversiontable) {$psversiontable.psversion} else {[version]"1.0.0.0"}
}