A quick guide to Washington solar incentives and rebates

solar incentives

Washington State’s ongoing advocacy to cover its establishments in solar energy is further supported by people and the government. As electricity bills continue to rise, as well as climate change and the growing temperatures to record numbers, solar panel installations are the next big move to combat these effects.

Washington also has fewer fossil fuel resources or non-renewable resources, which gives more space for solar energy to rise.

Tax Incentives

Tax credits are a dollar-for-dollar reduction in income tax. The local government has given tax incentives to households and establishments with installed solar panels and actively using solar energy. Solar power systems themselves are already qualified for a 26% tax credit on the federal income tax, while battery storage systems to safely store solar energy harnessed during the day are qualified for a 30% tax credit. 

Recently, the federal solar tax credit, which the incentives are based on, has been extended until 2022, and in 2023 will hold a 22% credit instead.

In government incentive to further push for solar energy, there is no maximum amount that can be claimed by the homeowner or landowner as long as your solar system has been installed between January 1, 2006, to December 31, 2021.

The solar electricity generated by your panels must also be against and not over the home or establishment’s regular electricity consumption. The costs covered by the incentive are the panels themselves, labor and installation costs, and inspection and delivery fees.

The Department of Energy has explained the following cost reduction example if all requirements were met by the homeowner who decides to install solar panels within the required date.

“For an $18,000 system, the total cost reduction in this example would be: [$18,000 * 0.30] + [$18,000 * (1 – 0.22) * (0.25)] = $5,400 + $3,510 = $8,910”

After installation, the ongoing electrical free will also be calculated to be granted a reduction in the bill. Through the net-metering policy active in Washington state, you can sign a contract with utility providers to reduce the cost of your bill in exchange for the excess power you generate with your solar energy system. This incentive better circulates the use of solar energy and positions Washington to be a leading driver of renewable energy in the country.

In the same guide and date from the Department of Energy to further explain the incentives and rebates present in the United States, the following cost and reduction example was shown if a one-time rebate of $1,000 was given and if the total cost of installation was at $18,000.

0.3 * $18,000 = $5,400

Solar energy is a huge investment, however, its benefits are long-term and most importantly safe and environmentally friendly. It’s not just an investment in one’s future taxes and costs for the home, office, or building but also an investment for the future generation that will live in our beautiful state of Washington.

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