Solar Incentives For Businesses
With today’s Washington commercial solar incentives, a business can cover up to 80% of the upfront costs associated with a brand new solar panel system. By combining free, renewable power with the new Washington state solar production incentive and healthy tax credits business are choosing solar energy to realize short and long-term benefits for all sizes of businesses.
Click On The Tabs To Learn More About Earn Incentive
- Washington State Solar Production
- Federal Solar Tax Credit
- Accelerated Depreciation
- USDA Grant
- Net Metering
Washington State Solar Production Incentive
Get Paid Cash To Generate Solar Power
This unique Washington state solar incentive is based on how much solar power you produce from your panels. Each year you will get a check from your local Public Utility worth up to $25,000 for installing commercial solar panels.
It pays cash to business owners that qualify up to $0.11/kWh for all of your solar electricity. You must use made-in-Washington solar panels and the payments are made to you once per year, in late summer. The maximum amount you can be paid is $25,000/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.
Example of Production Cash Incentive
You generate 10,000 kilowatt-hours of solar power.
Multiple 10,000 by $0.11
You will earn $1,100 for the 10,000 kWhs your generated
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, please be aware that the cash-incentive steps down each year.
Federal Investment Solar Tax Credit
The Federal Solar Tax Credit will directly credit your federal business taxes, wiping out any tax liability that you have on a dollar-to-dollar basis. This incentive is a credit to your tax return worth 30% of the total cost of your solar electric system. The credits can be used within 5 years from the date of installation.
Example Using the Federal Solar Tax Credit
Cost of System
Federal Tax Credit Gained
MACRS Accelerated Depreciation For Solar Panels
50% Bonus Depreciation Is Available, Too!
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. Our example tables below use a project cost of $100,000.
50% Bonus Depreciation Table
In the first year claiming the 50% Bonus Depreciation, the basis is reduced by half or 50% from $85,000 to $42,500 before applying the normal MACRS depreciation rate. In Year One, you will gain an addition $8,500 in depreciation ($42,500 x 20% = $8,500). After year one, you will continue to apply MACRS rates to the remaining half of the basis ($42,500 x 32% =$136,000 and so on…)
United States Department of Agriculture Grant
Rural Energy for America Program (REAP)
The United States Department of Agriculture (USDA) provides grant funding to agriculture producers and rural small businesses for solar electric systems. The popular Rural Energy for America Program solar grant, or better known as USDA REAP Grant cover 25% of the total cost of going solar with grants from the United States Department of Agriculture.
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
- Businesses in eligible rural areas
- Agriculture producers may be in rural or non-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.
Net Energy Metering at Market Rate
Net Energy Metering is how your utility compensates homeowners with solar panels for providing clean, renewable energy to your neighbors. Your utility must keep a “running tab” on how much solar energy you generate and then remove that charge from your bills. Any extra electrical credits that you save up must be carried forward to the next month’s bill for a full year.
Each credit is worth equal the market rate which is the price you pay for electricity.This means that you can bank up energy credits for solar power that you create in the summer, then use it in the winter when the sun isn’t shining so much.
Example of Net Energy Metering
You generate 10,000 kilowatt-hours of solar power.
You consume 6,050 kilowatt-hours of utility energy.
Therefore, you net 3,500 energy credits.