2022 No Cost Solar Program Washington State

Payment Plans & Bill Assistance

Seattle City Light is disconnecting customers for non-payment. City Light has flexible payment plans available to all customers. For income-eligible residential customers, we have bill assistance programs available, including emergency bill assistance and the Utility Discount Program. If your electricity has been disconnected, call Monday Friday 7:30 am 6:00 pm to discuss your options.

• Pay your electricity bill, manage your account, and find ways to save money and protect the environment.
• Understand your electricity bill, options for paying your bill and payment assistance programs.
• Seattle City Light helps homeowners and renters save energy, money, and the environment with innovative programs and ideas.
• Start or stop electricity service for your home or business.

Final Thoughts: The Best Washington State Solar Incentives

Washington State is a great place to invest in residential, commercial, or industrial solar energy systems. With private and public initiatives in place to make your purchase cheaper, there is no reason not to get in on the renewable energy market and start your solar projects today! Plus, increasing energy costs around the globe should make you eager to own your means of producing electricity. If you are interested in purchasing, many great companies can help you.

How Much Do Solar Panels Cost In Washington In 2023

As of January 2023, the average solar panel cost in Washington is $3.15/W. Given a solar panel system size of 5 kilowatts , an average solar installation in Washington ranges in cost from $13,388 to $18,112, with the average gross price for solar in Washington coming in at $15,750. After accounting for the 30% federal investment tax credit and other state and local solar incentives, the net price you’ll pay for solar can fall by thousands of dollars.

Importantly, these costs are typical for solar shoppers comparing solar quotes on the EnergySage Marketplace. When you compare quotes for solar panels on EnergySage’s competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Read our to compare solar panel costs across states and by panel brand.

Don’t Miss: What Can You Run Off A 400 Watt Solar System

Expanding Access: Washingtons New Community Solar Program

In January 2022, Washington Representatives Sharon Shewmake and Liz Berry introduced HB 1814, a bill expanding equitable access to renewable energy through community solar projects. The 2022 bill creates a community solar program run by Washingtons utility regulatory board. Under the proposed program, community solar project managers can apply to the program, become certified, and receive bill credits for their projects. Community solar gardens may range between 12 and 199 kilowatts of nameplate capacity. They must serve subscribers who are low-income, a low-income service provider, a public agency, or a tribal agency.

The 2022 bill incentivizes the building of solar projects through a grant-style fund. The $100 million fund, managed by Washington State University Energy Extension, can be used to fully cover the costs of solar installation. The project administrator can recover up to $20,000 in administration costs, as well. Washington State University must attempt to equitably distribute incentive funds throughout the state, and will do so by allocating funds based on the proportion of the states low-income customers served by each utility and other factors.

Everyone needs to be a part of the green energy future. In the past, solar energy incentive programs have primarily benefited people who can dole out cash for the panels and installation. We can do more to include everyone in the transition to a green economy and together, with this bill, we will.

Rep. Shewmake

How The Solar Rebate Works

Your new solar energy system is eligible for a nominated amount of certificates based on its ability to offset carbon emissions over the next 8 years. Thats right. You will produce clean, green energy here, not just energy savings. Therefore, the Australian Government Clean Energy Regulator rewards you with a designated number of Small Technology Certificates depending on your solar energy system size.

Your subsidy value is acquired by trading your Small Technology Certificates with big polluters who must purchase these clean energy certificates to offset their carbon emissions. Such complexities are often too much for most, including solar companies. Therefore, releasing the Small Technology Certificates for a point-of-sale discount at an agreed market rate is more manageable.

At the time of writing, $38 is considered a stable rate amongst most retailers, allowing for potential market fluctuations without consumer clawback in the event of change.

On top of a point-of-sale discount , most residential solar systems are eligible for a feed-in tariff through Synergy for excess energy exported to the grid. Learn more

You May Like: Are Solar Panels Harmful To Your Health

Solar Renewable Energy Certificate

A Solar Renewable Energy Certificate , sometimes referred to as a Solar Renewable Energy Credit, is another type of state-level solar incentive. After you install your solar power system and register it with the appropriate state authorities, they will track your systems energy production and periodically offer you SRECs as a benefit. You can sell your SREC to your local energy utility to provide payment thats typically considered taxable income.

Compare Quotes From Top-rated Solar Panel Installers

Select a State To Get Started With Your No Commitment, Free Estimate

What Expenses Are Included

The following expenses are included:

• Solar PV panels or PV cells
• Contractor labor costs for onsite preparation, assembly, or original installation, including permitting fees, inspection costs, and developer fees
• Balance-of-system equipment, including wiring, inverters, and mounting equipment
• Energy storage devices that have a capacity rating of 3 kilowatt-hours or greater . If the storage is installed in a subsequent tax year to when the solar energy system is installed it is still eligible, however, the energy storage devices are still subject to theinstallation date requirements). Note: A private letter ruling may not be relied on as precedent by other taxpayers.
• Sales taxes on eligible expenses

Recommended Reading: How Much Do Tesla Solar Roofs Cost

Gov Jay Inslee Signs Bill To Fund $100 Million Of Community Solar In Washington

By Kelsey Misbrener | April 4, 2022

Led by Representative Sharon Shewmake, lawmakers in Olympia have approved new funding for Washingtons expired solar energy incentive program. Governor Inslee signed House Bill 1814 on March 30 with the aim of closing an equity gap in community solar.

The policy creates a new incentive program beginning in 2023 that will provide funding for low-income households and low-income service providers installing community solar. Washington State University Energy Extension will manage the $100 million in funding.

The program will cover up to 100% of project costs. It places a limit of $20,000 on the administrative and development costs a project manager can recoup per project.

Everyone needs to be a part of the green energy future, said Shewmake. In the past, solar energy incentive programs have primarily benefited people who can dole out cash for the panels and installation. We can do more to include everyone in the transition to a green economy and together, with this bill, we will.

The new program is in part the result of a three-year effort by nonprofit Washington State University Energy Extension will manage the $100 million in funding, providing grants to community solar projects around the state to pass policy that recognizes the growing need for equity in the energy economy.

News item from Olympia Community Solar. Edited on April 22 to clarify that the $20,000 limit is on administrative costs.

About The Author

Doesnt The System Need Batteries

Nope! More than 95% of PUDs customer-generators have photovoltaic systems that do not include batteries.

PV systems are interconnected to the grid and, through net metering, solar customers get credit for excess power generation. Batteries are not needed in order to have power available when the sun isnt out, or to benefit from energy produced when you arent using it.

Batteries are an option if backup power is critical to you. If investigating PV with battery storage, make sure to learn about the added cost and maintenance of batteries as well as the impacts on estimated energy production.

Recommended Reading: Best Solar Cover For Inground Pool

Solar Leases And Ppas

Choosing to go with a solar lease or solar PPA may be something worth considering for certain homeowners. The biggest selling point here is that there is no upfront cost, but beware that the value is dampened by the solar company who takes out their cut of your savings through your monthly payments. By the end of your warranty period, the lease or PPA will have taken up more than half of your potential savings as profits for the solar installer.

Take a deeper dive into the different solar financing options.

Solar Tax Credits Rebates And Incentives In Washington

Now is the time to go solar in Washington! Equipment prices have dropped to record levels, and generous government credits, rebates and incentives are available to homeowners investing in solar.

• Federal solar tax credit of 30% of your systems cost between 2022-2032
• A tax credit is a dollar-for-dollar reduction of the income tax you owe
• Washington residents pay no sales tax on typical residential solar energy systems

These incentives wont be around forever, so contact us or give us a call at 707-9937 to start your journey to clean, limitless energy!

Read Also: The Pros Of Solar Energy

Does Washington Have An Srec Program

SREC programs monitor the energy production of your solar energy system and compensate you for every 1,000 kWh you produce. The credits hold a real-dollar value in areas where utility providers need to comply with RPS goals and pay down their fossil fuel consumption.

The WSU incentive program is somewhat similar to an SREC program, but the credits are significantly lower and arent purchased by electric companies. Additionally, the WSU program is no longer accepting applications, whereas SREC programs generally dont have caps that limit participation.

Solar Energy System Eligibility

To be eligible for the Federal Solar Tax Credit, you must install a solar energy system that provides electricity for a residence, such as solar water heaters or a solar photovoltaic system. Since solar water heaters use the suns thermal energy to heat water and solar photovoltaic systems convert the suns light energy into electricity, both systems will qualify for the Federal Solar Tax Credit.

Also Check: Ring Solar Panel For Stick Up Camera

Ecowatchs Opinion On Net Energy Metering In Washington

We love to see NEM programs, as they provide a few major benefits to solar customers. These include boosted energy savings over time, reduced electric bills, a lower effective electricity rate and more value overall from solar conversion.

Best of all, most reputable installers in the state will enroll you automatically, so there is often no effort required on your part to take advantage of this incentive.

We would love to see the retail rate mandated for NEM credits, but with policies disappearing in other states, were happy just to see the energy program available at all.

Other Frequently Asked Questions

If the tax credit exceeds my tax liability, will I get a refund?

This is a nonrefundable tax credit, which means you will not get a tax refund for the amount of the tax credit that exceeds your tax liability. Homeowners may get a tax refund at the end of the year due to the tax credit, if the reduction in tax liability means there was overpayment during the year. This can often occur when employers deduct taxes for employees over the course of the year. However, such refund is still limited by the taxpayers total tax liability. However, you can carry over any unused amount of tax credit to the next tax year.

Is the cost of a roof replacement eligible for a tax credit?

Sometimes. Traditional roof materials and structural components that serve only a roofing or structural function do not qualify for the credit. However, some solar roofing tiles and solar roofing shingles serve both the functions of solar electric generation and structural support and such items may qualify for the credit. This may change based on additional guidance from the Treasury Department.

Can I use the tax credit against the alternative minimum tax?

Yes. The tax credit can be used against either the federal income tax or the alternative minimum tax.

I bought a new house that was constructed in 2022 but I did not move in until 2023.

May I claim a tax credit if it came with solar PV already installed?

Recommended Reading: How To Put Up A Solar Electric Fence

What Is A Tax Credit

Tax credits are a powerful tool that can help you reduce your taxable income and directly impact your annual tax bill. A dollar-for-dollar reduction of the income tax you owe, a tax credit can reduce the amount of tax you owe or increase your tax refund. They also differ from deductions and exemptions.

What You Should Know About The Renewable Energy Projects Sales & Use Tax Exemptions In Washington

In an effort to keep the cost of converting to solar energy as low as possible, the state waives all sales tax on PV equipment. That includes all components of your system and the installation labor.

Given the average local system cost $26,900 and the state sales tax rate of 6.5%, this perk would save you an average of $1,748.1 However, local governments in Washington also impose additional sales and use taxes that can drive the total sales tax rate over 10% 2.

State law provides that solar equipment is also exempt from local sales and use taxes, so on a system cost of $26,900 and a sales tax rate of 10.25%, your savings would be bumped up to around $2,757. Your specific savings in your locality will be reflected in your solar quote and final system price.

This perk is available to all solar customers in the state carrying out solar upgrades, including small businesses, industrial customers and more.

Recommended Reading: What’s The Cost Of Installing Solar Panels

Solar Tax Credit Eligibility

You can qualify for the ITC as long as your solar system is new or being used for the first time between January 1, 2006 and December 31, 2023. Unless Congress renews the ITC, it expires in 2024.

Other requirements include:

• You must own the system outright
• The system must be located in the United States
• The system must be located at your primary or secondary U.S. residence or for an off-site community solar project

Are Solar Panels Worth It In Washington

Solar panels have fallen in price by more than 80% in the last ten years. In 2022 they also remain subsidized by the 30% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy?Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over its lifetime

7¢ /kWh

Recommended Reading: Lithium Iron Phosphate Battery Solar

Program Documents For Solar 2022

Commerce is no longer accepting applications for 2022. These documents are provided for reference.

Applicants must be public entities in the state of Washington, such as:

• Local agencies, including any city, town, county, special district, municipal corporation, agency, port district or authority, or political subdivision of any type, or any other entity or authority of local government in corporate form or otherwise.
• Public higher education institutions

Grants will fund new solar photovoltaic systems net-metered with existing publicly-owned buildings or facilities in Washington. Projects must be between 20 kW AC and 100 kW AC and must provide 50% of the total project cost from other, non-state sources. Total project cost for this purpose excludes any contingency funds.

Projects located in certain priority communities will have different requirements: the minimum project size is 10kW AC, and the minimum match requirement is 33% of the total project cost, excluding any contingency funds. These projects will also receive additional preference during selection. The priority communities will include:

Projects which meet these criteria will receive higher scores, but a project is still eligible to apply to this grant if it does not meet some or all of these criteria:

Please sign up for email updates to receive RFA announcements and other updates about this program.

Which Tax Incentives Are The Best In Washington

Above, weve mentioned all of the perks available for solar adoption in The Evergreen State. Some of these incentives provide more value overall than others and should be prioritized, in our opinion.

First, we suggest that every solar customer in the state take the federal credit. This perk is a breeze to apply for and provides an average value of over $8,000. Its available to all residents as well, provided they convert to solar and file for the credit before 2034.

NEM is the next most valuable perk in the local solar industry, in our opinion. This benefit program is also available to all residents and can help push the average solar savings close to or beyond $10,000, especially for those who get the full retail value per kWh. NEM also helps pay off your equipment more quickly and adds more value to your panels overall.

The sales tax exemption is also hugely beneficial and could save you over $2,500 on local installations. You dont need to file for this one, but were still mentioning it, given the value and the fact that it applies automatically.

Don’t Miss: Is Pine Sol Safe For Wood Floors