Why Now is the Time for Solar in Washington
There’s a growing interest in solar power across Washington state. Solar panels paired with backup battery systems help homeowners have better control over their energy use while also saving money on energy bills and reducing greenhouse gas emissions. Yet, the benefits of solar panel systems don’t stop there.
Washington state offers lots of solar incentives for residents, which can reduce the cost of solar installations and electricity bills. These incentives can help more people afford rooftop solar panels.
Unlocking Savings: A Snapshot of Washington Solar Incentives
In Washington, there are several solar incentives available. This includes federal and state programs, such as tax credits, tax exemptions, and net metering, depending on your eligibility. The municipality, installation details, and solar energy production can affect which solar incentives are applicable.
These benefits can reduce the overall cost of solar installations and offset bills to make solar energy more cost-effective for Washington residents. So, it’s important for everyone to take advantage of them.
Federal Tax Credits: Your Ticket to Big Solar Savings
What is the Federal Investment Tax Credit (ITC)?
The Federal Investment Tax Credit was reintroduced thanks to the Inflation Reduction Act of 2022. Washington residents can get a 30% tax credit for clean energy projects, which is applicable over multiple years. This Washington solar tax credit makes installing solar energy systems more affordable for anyone interested in clean energy.
How to Claim the ITC
To claim your solar tax credit, you need to fill out Form 5695. It should be completed with your tax return to get the credit. The form, along with information on how to fill it out, is on the IRS website.
Washington State Solar Perks: What’s in it for You?
Sales Tax Exemption: Cut Costs Instantly
Washington state provides a full sales tax exemption for solar energy systems generating up to 100 kW AC. This applies to both the purchase of solar equipment and installation costs. Essentially, homeowners and businesses installing solar systems under that size don’t have to pay state or local sales tax, reducing the overall upfront cost.
For systems generating over 100 kW but not exceeding 500 kW AC, residents can get a partial refund. Residents and businesses must pay sales tax upfront but can apply for a refund on a portion of the costs for machinery, equipment labor, and installation services. The refund process requires filing with the Washington State Department of Revenue after installation is complete.
This tax exemption significantly lowers the cost of going solar, making it more affordable for homeowners and businesses to invest in clean energy.
Net Metering: Earn Credits for Extra Energy
Washington has a net metering program, allowing residents to get credits from solar generation. If you generate more energy than you use, the excess energy can feed back into the grid. This offsets electricity bills, potentially reducing bills to zero, with the exception of a minimal monthly connection fee. Net metering credits reset on March 31st every year.
Net metering has a cap of 100 kW generated from your solar power. This restriction specifically applies to commercial properties since residential solar generates much less than 100 kW.
Incentives from Local Utilities: Check with Your Local Provider
Washington solar incentives can vary based on your location and provider. Search for your town or utility company plus “solar power incentives” to see what options are available for you.
Ready, Set, Save: Claim Your Solar Incentives
PNW Eligibility
The PNW is a friend to clean energy. Residents and businesses across Western Washington can get approximately 10% in sales tax waiver. The exact percentage can vary based on the municipality, but all solar properties in the PNW can experience this benefit.
Partner with a Trusted Installer
The best way to get maximum savings on solar panels is to get expert advice. Clean Energy Innovators is an experienced solar and battery backup installer in the greater Seattle area, offering expertise for solar panel systems and Washington solar incentives.
For residential solar installation and questions about solar in Washington, Clean Energy Innovators is here to help.
Maximize Your Solar Savings in Washington
Washington offers a range of solar incentives and programs that make transitioning to clean energy more affordable. However, many of these savings are time-sensitive, so acting quickly ensures you receive the best financial benefits.
Beyond reducing your carbon footprint, solar energy significantly lowers installation costs and can dramatically cut—or even eliminate—your electricity bills. With federal tax credits, Washington’s sales tax exemption, and net metering programs, homeowners can accelerate their return on investment while securing long-term energy savings.
Investing in a high-quality solar system delivers decades of value. At Clean Energy Innovators, our solar panels come with a 25-year warranty and have the potential to last 40 years or more, maximizing efficiency and cost savings for the long haul.
To experience these many solar benefits, check out Clean Energy Innovators to get solar panels for your home.
