RESIDENTIAL SOLAR INCENTIVES AND FINANCIAL BENEFITS IN WASHINGTON
PAY ZERO SALES TAX
As of July 1, 2019 all solar PV systems under 100 KW are exempt from sales tax. Click to the bill report as passed during the 2019 legislative session.
For more information on the implementation of the sales tax exemption visit the DoR’s 2019 Tax Legislation page and click on the “clean energy” link for details.
GET A 30% TAX CREDIT – INFLATION REDUCTION ACT
The federal residential solar energy credit is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar PV system paid for by the taxpayer. The installation of the system must be complete during the tax year.
Solar PV systems installed in 2020 and 2021 were eligible for a 26% tax credit. As part of the Inflation Reduction Act, in August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of all solar PV systems installed between 2022-2032. (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit.) It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it.
There is no maximum amount that can be claimed. For the most up-to-date information see the Dept of Energy guide.
NET METERING – YOUR SOLAR ENERGY BANK
With net metering, your electric utility becomes your energy bank. A bi-directional meter replaces your existing electricity meter to track the production and use of your home’s energy. When your solar energy system produces more power than you’re using, the excess electricity spins this meter backwards, giving you a dollar-for-dollar utility credit for all the excess energy. At night, when the sun isn’t shining, you make withdrawals from the grid and use the credits you stored earlier in the day. In the summer, when days are long and sunny, most customers produce more energy than they need, building up credits with their utility that are used to offset their usage in the wintertime, when days are short and cloudy.
- In Washington, the net-metering cycle runs annually from May 1 to April 30 of the following year. Credits roll over each month, but do not transfer from one year to the next, so it’s “use it or lose it” after April 30 of each year.
- Because net metering is essentially a “kilowatt exchange program,” your solar becomes more valuable the more energy you use.
- As retail rates for electricity rise, your credits for excess unused power will increase accordingly. Net metering thus helps insulate you from increasing utility rates. For example, if your utility’s rate increases from 10 to 15 cents per kWh, your net metering credit will do so as well.
There is no expiration date for net metering, but it is offered on a first-come, first-serve basis until the cumulative generating capacity of solar PV systems equals 1/2% of the utility’s peak demand. After a utility hits this quota, the utility can choose to continue offering net metering, or it can create a new arrangement for future customers. This is another good reason to get your system installed sooner rather than later!
In recognition of the contributions workers have made to the strength, prosperity, laws and well-being of the country, we offer a special $500 discount to our union brothers and sisters on any solar pv system. Please let us know at your site evaluation if you or your significant other belong to any unions.
ACCELERATED DEPRECIATION FOR BUSINESS
If you’re a business looking to go solar, the federal government offers an accelerated depreciation program as an additional incentive to make solar more affordable. The Modified Accelerated Cost-Recovery System (MACRS) allows a commercial owner of solar to depreciate 85% of the total system cost in the first year.
Tacoma Power Utilities Evergreen Options Program. TPU will award grant funds up to $50,000 each to local nonprofits, schools, and government agencies toward the purchase and installation of on-site local renewable energy projects.
Rural Energy for America Program (REAP). This grant is administered by the U.S. Dept. of Agriculture (USDA) and provides rural farmers and small businesses with grants paying up to 25% of solar project and energy efficiency upgrade costs.
FREE SOLAR SITE SURVEY
So now that you know how easy it is to go solar, let us perform a quick, free solar site survey at your home or business. Now is truly the best time to take advantage of all available solar incentives before they decrease or end in the future.
By combining all of the above, the initial cost of installing a solar PV system on your home or business can be entirely offset. And thanks to local residential solar financing, no initial out-of-pocket cash is required!
Solar Incentives in Washington State
Artisan Electric Inc is located on 969 S Nebraska Street Suite A, Seattle. From Seattle-Tacoma International Airport (SEA) head southeast on Airport Expressway toward Departures Dr and keep left. Then continue onto S 182nd St/Arrivals Dr and keep left to continue on S 182nd St/Airport Expressway. Next, use any lane to turn slightly left onto Airport Expressway. Keep right at the fork, follow signs for WA-518 E/Interstate 5/Interstate 405 and merge onto WA-518 E. After that merge onto WA-518 E and use the left lane to take the Interstate 5 N exit toward Seattle. At this point merge onto I-5 N and use the left lane to take exit 162 for Corson Ave toward Michigan St. Finally, use the left lane to merge onto Corson Ave S. Turn left onto S Nebraska St and Artisan Electric Inc will be on your right.
We are open Monday to Friday from 7:30 am – 5:00 pm.
For additional questions, you can call us at (206) 557-4215 or you can find us on Yelp.