Renewable Energy Incentives

The following information focuses on renewable energy incentives for Washington State residents. For incentives available in other states, please visit the Database of State Incentives for Renewables & Efficiency (DSIRE) at DSIRE

Federal

30% tax credit for solar electric (PV) installations installed anywhere in the U.S. There is a $2000 cap on the incentive for residential solar hot water.

State Sales Tax Exemption

Washington State sales tax is waived on the sales of equipment used to generate electricity using wind and sun for qualified systems over 1 kW through June 30, 2011. (Solar Hot Water is excluded.) The exemption applies to labor and services related to the installation of the equipment, as well as to the sale of equipment and machinery.

From July 1, 2011 to June 30, 2013, the exemption for the systems described above that are over 10kW in size will be reduced from 100% of the sales and use tax to 75% of the sales and use tax, in the form of a rebate.  Systems 10kW and under will remain 100% tax exempt until June 30, 2013.

Net Metering

All solar electricity that is not used at the time of generation is fed back into the utility grid, which results in “spinning your meter backwards”. Your utility bill each month is the difference between what you produced and what you consumed. If you produce more than you consume for the whole month, the “credits” can be carried forward.

Production Incentive Payments

Washington utilities are authorized to pay a minimum of 15¢/kWh for every kilowatt hour produced by net-metered solar, wind and biogas systems, up to $5,000 annually. This incentive increases (up to 54¢/kWH) based on certain components being manufactured in Washington State. Ask us about “Made in Washington” products.

Other performance incentives may be available to you from your local utility.  Visit the Database of State Incentives for Renewables & Efficiency (DSIRE) website or call us to find out what’s available in your area.

Utility Incentive Programs

Utilities in some counties offer grants, low interest loans or energy rebates. As an example, Snohomish County PUD, through their Solar Express Program, offers homeowners 2.9% APR loans up to $25,000 for solar electric systems (PV), and up to $14,000 for solar hot water systems.  Or, residential customers may instead choose a cash incentive of $500 per installed kW, up to $2,500.

For commercial and industrial customers, the Solar Express program offers a cash incentive of $500 per installed kW, up to $10,000 for qualified systems.

To find out more about incentives that are available in your area, please give us a call, or visit the Database of State Incentives for Renewables & Efficiency (DSIRE) website.