Solar Incentives

Solar incentives vary by utility and your individual circumstances. Consult with a tax professional to confirm eligibility. Other great resources for current programs and incentives can be found at www.dsireusa.org or www.seia.org

Commonly Referred to as Official Name Incentive Notes
30% tax or ITC Solar Investment Tax Credit 30% of installed system cost that is a dollar for
dollar credit against your liability’s
Have up to four years to use credit. Can be used
in parts. MUST have tax liability to be a benefit.
Cash Rebate / Utility pays for energy Renewable Energy System Cost Recovery from WA
state department of Revenue
Between .15 and .54 paid per kWh whether you use
or not thru July of 2020
Check actually comes from utility around August. Maximum
incentive $5,000 per year.
This program is due for change, call us for details.
Net Metering This is agreement with your utility Essentially allows your meter to “net” out the
solar so you receive credit against your bills.
Frequently your meter in peak season may go
backwards, this is the utility’s way of “storing” the excess energy you produce
which will then count against next month in which it is needed.
Sales Tax Refund
(systems under 10kW do not pay sales tax)
Solar Tax Refund on purchase and installation of
Qualified Renewable Energy Credits
Solar Electric system over 10kw must pay WA
state sales tax. At completion of project you submit form to get 75% of that
tax refunded back to you.
We will take care of this process on your
behalf.
MACRS / Accelerated Depreciation Modified Accelerated cost recovery system In effect eligible for a cost recovery period of
5 years. This is typically worth about 25% of the project cost in tax benefits.
Primarily for business although home based
business may qualify for a portion of this incentive.
REAP Grants For the Agricultural industry there is often an
opportunity for these grants which pay up to 25% of the installed cost of the
system back in cash upon project completion.
Must have over 60% of your income be directly
related to crop production. As example making wine would not qualify but
growing the grapes would.

Solar Electric projects eligible for all listed above
Solar Water heating projects eligible for #’s 1, 4, 5 & 6
Solar Pool heating projects eligible for #4

Hot Solar Solutions, Solar Electricity in Burbank Washington

30% Federal Investment Tax Credit (ITC)

Homeowners and businesses across the nation may claim a tax credit of 30% of the cost of a solar system installed on their property. Costs may include labor, assembly or original system installation, and electrical labor to connect the system to the structure’s service main. If the credit earned by the system exceeds a single year’s tax liability, the excess credit may be carried forward to the following taxable year. Currently the federal ITC is set to expire December 31, 2016.

Accelerated depreciation

Under the Federal Modified Accelerated Cost Recovery System (MACRS) businesses may recover investments in solar equipment through depreciation deductions. Solar equipment is classified as five-year property under the MACRS program.

Washington state solar incentives

Washington has some of the most progressive solar incentives in the nation. In 2006 Washington State enacted I-937, requiring that Washington obtain 15% of it’s energy from renewable sources by the year 2020, excluding hydro-power. In 2005 the legislature passed Senate Bill 5101 (due to expire 06/30/2020) which provides Washington State consumers up to $5,000 annually in incentives from utilities and sales tax exemptions when purchasing made-in-Washington itek Energy solar equipment. Both of these pieces of legislation promote the development of a local solar industry – generating new jobs, and clean, renewable energy. Combined with the Federal incentives, going solar has never been more affordable.

Washington state solar production incentive and net metering

Solar systems installed with both Washington built panels and inverters qualify to receive payments of $0.54/kWh produced up to $5,000 per year.

In addition to being paid $0.54/kWh, your power bill will be reduced by the amount of power that your system produces. If your system produces more than your home consumes the utility will credit your account for the power you added back to the grid. Credits can be carried from month to month but will reset at the end of the utilities annual billing cycle. Savings can be even better for businesses!

Local incentives

In addition to the Washington State production based incentive many local PUD’s are offering their own production-based incentives. To learn what local incentives are available in your area contact your local PUD or utility. Local incentives can be found on the Washington State section of DSIRE.

Property value increase

A study published by Lawrence Berkeley National Laboratory compared California home sale prices for homes with solar energy systems to those that did not. The study’s data set was over a 8 1/2 time frame using a 3.1 kW average system size and found that on average solar homes went for $17,000 more than their non-solar counterparts. A general rule of thumb is that any home improvement that lowers your electricity bills by $1000 annually will increase a home’s value by about $20,000.


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