Washington Commercial Solar IncentivesReducing your business' bottom line and carbon footprint
Take Advantage of Washington Solar Incentives
The cost of a solar panel system has come down by more than 50 percent in the last few years, making solar a better investment than ever before. Low financing rates, federal tax credits, and various Washington commercial solar incentives combine together to make solar energy a smart financial investment for your business. Business owners have one extra cash incentive.
Join over 1,000 Washington companies using solar to cut energy costs and gain the competitive edge.
Incentive 1 – Federal Solar Tax Credit
This incentive is a credit to your tax return worth 30% of the total cost or your solar electric system. The credits are taken for the tax year in which the system is installed.
If you do not use the entire federal tax credit, it can be passed forward to future tax years. Residential customers will have 5 years from the date of installation to claim the total credit.
You can learn more in this article: Why a Solar Tax Credit Is Worth More Than a Deduction.
Incentive 2 – Washington State Solar Production Incentive
Get paid cash for the solar power you generate
This unique, Washington solar incentive is based on how much solar power you produce from your panels.
It pays homeowners that qualify up to $0.54/kWh for all of your solar electricity. You must use made-in-Washington materials and the payments are made to you once per year, in late summer. The maximum amount you can be paid is $5,000/year, so it is critical to size your system appropriately to ensure a return on your investment. We are happy to help you do that for free and with no obligation.
Payments made through this program are made in addition to the free solar electricity you receive throughout the year, making this incentive one of the most generous in the nation. However, regardless of when you choose to go solar, your extra payments will end in June of 2020.
Solar Production Incentive Overview:
Under this program solar panels will:
- Reduce your electric bill each month (this is called “net metering”).
- Deliver an additional $0.54 for every kWh of solar electricity you generate during the year (up to $5,000).
These extra payments end for everyone on June 30, 2020, regardless of when you install your panels so it’s better to install sooner than later! You can learn more about the Solar Production Incentive; Clark PUD Solar Energy Program.
Incentive 3 – The Modified Accelerated Cost Recovery System (MACRS)
Depreciation is the loss of value that occurs over time with the item your business purchased for a specific use. As a business owner, you are eligible to deduct this “loss in value” from your taxable income when used for your business.
85% of total solar installation costs are eligible for depreciation. This can add a tremendous amount of financial value to your system.
If you have used MACRS or want a refresher course we recommend you to read, “How to Calculate the MACRS Depreciation Benefit for your business.”
Incentive 4 – USDA Solar Grant Money
Cover 25% of the total cost of going solar with grants from the United Stated Department of Agriculture (USDA).
Agricultural producers and rural small businesses are eligible to receive up to $20,000 in grant money through their Rural Energy for America Power Program (REAP).
Who may apply?
- Agricultural producers with at least 50% of gross income coming from agricultural operations, and
- Small businesses in eligible rural areas.
Keep in mind, that “small” is defined by the SBA depending on your NAICS code, and can appear quite “large.”
At Sunbridge, we in-house writing the grant to ensure you have the best possible opportunity to be awarded. We work diligently to secure business grant funding for many projects in a competitive system.
Incentive 5 – No Sales Tax!
In addition to the federal tax credit for solar energy, Washington State will not charge sales tax on solar equipment. This can significantly reduce your upfront cost! It’s like living in Oregon, but better (because you’re in Washington).