Financial Incentives

Solar Equipment

A primer on the main components of a solar PV system

Net Metering

Bank your excess solar power with your utility

A look at solar tax incentives, energy savings, and increased property values

Electricity is a necessity in our modern lives and one way or another, we all have to pay for it. We are so used to paying our electricity bills that we rarely (if ever) stop to think about what our energy options are. Solar is a great financial alternative that can save you money on your monthly energy bill, add value to your home and provide you with a generous tax credit!

Energy Bill Savings

A solar system is your own private source of clean renewable energy, and depending on the equipment you install it should last for 40-50 years. Your solar system will offset the energy you use in your home, saving you the money you would have spent on your electricity bill.

We can compare these figures in two ways:

Look at the total energy expenditure over a period of time, or
Look at the comparative cost per kWh that you will be paying for your electricity. Typically Western Solar uses a 25-year period for this comparison as that is the warrantied life of our solar system (about half the expected useful life of 50 years).

Increasing Home Value

If you are trying to increase your home value or have a competitive edge in the real estate marketplace, consider solar. As residential solar installation rates have increased, the number of homes being sold with solar already installed is also on the rise. Studies by the National Renewal Energy Laboratory concluded that solar homes sell 20% faster and for 17% more than equivalent non-solar homes. A Zillow analysis published in 2019 found that, on average, U.S. homes with solar sell at a premium of 4.1% compared to homes without.

While these figures really positive, it’s important to remember that they’re based on national surveys and that there will be a fair amount of variation on an individual basis. It’s important for you to be able to make a value proposition to any potential buys for your home, and that’s where Western Solar can help. Western Solar will provide you a comprehensive report detailing the remaining warrantied life of the system and projected savings. We provide a full system orientation for any new homeowner and will work with your appraiser and real estate agent to give them the technical information they need to leverage your system to maximum benefit.

Available Incentives

Federal Tax Credit

Note: Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date and modified the phase down of this tax credit. It also made stand-alone energy storage systems eligible for the credit.

DSIRE.org: A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.

30% for systems placed in service after 12/31/2021 and before 01/01/2033
26% for systems placed in service after 12/31/2032 and before 01/01/2034
22% for systems placed in service after 12/31/2033 and before 01/01/2035
There is no maximum credit for systems placed in service after 2008.
Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2034.
The home served by the system does not have to be the taxpayer’s principal residence.

For additional information, visit the Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics on Energy.gov. See Federal Solar Tax Credits for Businesses for information specific to commercial solar applications.

Washington State Sales Tax Exemption

From July 1, 2019, through Dec 31, 2029, you do not have to pay sales or use tax on purchases of machinery and equipment used to generate at least 1 kilowatt (kW), but no more than 100 kW, AC of electricity using solar energy. You also do not have to pay sales or use tax on labor charges for equipment installation from qualified businesses in Washington. Installation must begin no earlier than July 1, 2019, and be completed by Dec 31, 2029 to qualify for the sales and use tax exemption for labor charges.

For more details, visit the Department of Revenue resource for Renewable Energy Incentives, under Machinery & equipment used to generate electricity using renewable energy & solar thermal heat systems – sales/use tax exemption.