Washington State Solar Incentives & Rebates
Encouraging homeowners to expand the benefits of solar, your local electric utilities (Clark PUD, Cowlitz PUD, and more) are offering a new WA solar panel rebate. The new Washington state solar incentives pay you for the solar energy you produce from your panels. Combined with the 30% federal solar tax credit and net metering, you can get you up to 80% off your final cost to make the switch to renewable, clean energy!
Washington State Solar Production Incentive
With this unique Washington state solar production incentive, you’ll get paid cash for the solar power you generate from the panels on your home or business. Each year, your local electric utility calculates how much solar energy you generated and will write you a check.
Currently, solar homeowners are getting paid up to $0.18 per kilowatt-hour (kWh) to produce sustainable energy for our local energy grid. This payment goes to you yearly for 8 years. However, each year on June 30th the incentive rate drops a few cents. We’re now using 2019 rates to in our financial models.
For homeowners who choose to use solar panels manufactured in Washington state, they’ll receive a bonus +$0.05 increased rate for each unit of solar energy they produce. We recommend using Washington solar panels because it follows our own company’s philosophy of strengthening our local communities. However, do feel free to ask us about your solar panel options. We offer a wide range of variety for your custom needs!
30% Federal Solar Tax Credit
The federal solar tax credit, or also known as the Investment Tax Credit (ITC), increases the development of solar power in our everyday residential and commercial lives. This tax credit for solar panels reduces your federal tax liability on a dollar-to-dollar basis. There’s no upper limit to how much tax credits you can get. It’s worth 30% of your final project cost.
How Does The Federal Solar Tax Credit Work?
When you receive your final invoice, you’ll claim 30% of the final cost in federal solar tax credits on the same year’s taxes. For example, when the final cost to install solar panels is $10,000, you will receive $3,000 (30%) back in federal tax credits. Don’t have the tax appetite? You may use the credits up to 5 years after the tax year of installation.
Net Metering in Washington state is how your utility compensates you for providing clean, renewable solar energy to your neighbors and grid. Your utility must keep a “running tab” on how much solar energy you generate and subtract it from your monthly energy bills. 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 that you create in the summer, then use it in the winter when the sun isn’t shining so much.
How Does Net Metering Work?
After you switch on your new solar energy system, your utility will begin to spin your meter backward when you’re producing more (solar) energy than how much energy your home is consuming! Each time you send excess power to the grid, the solar energy gets used nearby (by your neighbors) and you accumulate energy credits.
For example, if your solar panel system generates 1,000 kilowatt-hours of solar power in the month of May while you consume 650 kilowatt-hours of energy earning you 350 energy credits. These energy credits get used when you’re not generating more solar power than using (at night, etc).
Get Started With A Free Quote
Let our team help you determine whether solar is the right fit for your today’s lifestyle and financial goals. Schedule your free consultation and site survey today!
Want a preliminary idea or have few quick questions? Give your local solar experts a call! (360) 313-7190