Washington State Incentives
- Washington Renewable Energy Production Incentive: Provides PV system owners with a payment of $0.15-$0.54 per kWh produced, with Washington-made equipment receiving a higher rate. Capped at $5,000 per person per year.
- Federal Tax Credit: A taxpayer may claim a one-time tax credit of 30% of qualified expenditures for a solar PV system on the taxpayer’s residence.
- State Sales Tax Exemption: Solar PV systems of 10 kilowatts or less are exempt from sales tax on both labor and equipment. Systems greater than 10 kilowatts are eligible for a 75% sales tax rebate. (Extended until June 30, 2018!)
- Modified Accelerated Cost Recovery System Depreciation: Businesses can recover investments in solar PV equipment through depreciation deductions over a property life of five years.
Rules, Regulations, and Policy
- Net Metering: System owners receive credit for excess electricity produced by their system. Credits carry forward month to month for a year.
- Renewable Portfolio Standard / Utility Rebates: Utilities serving more than 25.000 customers must acquire at least 15% of their electricity from renewable energy sources by the year 2020. Some utilities provide direct rebates to their ratepayers who install a solar PV system to help meet this mandate.
The Database of State Incentives for Renewable Energy (DSIRE) provides comprehensive information on state, local, utility, and federal incentives and policies that support solar energy.