Incentives and Financing
Power Trip Energy will handle the paperwork for all of the applicable financial incentives for our clients, and guidance to the proper federal tax forms for you and your tax professional. This is a substantial service that is included in our turn-key installations. There are intricacies to some of the programs that we will be happy to explain as we work with you.
Net Metering – Get Retail Credit From Utility For All Solar Electricity You Generate
Washington State’s net metering law allows you to connect your solar electric (PV) system directly to the utility grid and requires utilities to value power generated by your grid-tied solar electric system at the same rate per kilowatt-hour (kwh) that the utility charges you for power from the grid. Connection to the utility grid allows batteries to be eliminated as an energy storage device. The utility grid becomes the energy storage device. When your grid-tied solar electric system produces less power than your home or business consumes (think short, cloudy winter days) the utility grid will provide the additional energy you need. When your grid-tied solar electric system is generating more power than your home or business uses, the excess power goes back to the grid and you will be credited for this power production on your utility bill.
Washington’s net-metering law applies to systems up to 100 kilowatts (kW) in capacity that generate electricity using solar, wind, hydro, biogas from animal waste, or combined heat and power technologies (including fuel cells). All customer classes are eligible, and all utilities — including municipal utilities and electric cooperatives — must offer net metering.
Sales Tax Exemption
Washington State provides sales tax exemption for grid-tied solar arrays, thereby saving you approximately 9% or whatever the specific tax rate is in your locality.
Federal Tax Credit – 26% Federal Tax Credit on Solar PV System Installation
Residential and commercial customers who install solar electric systems qualify for a federal income tax credit equal to 26% of the cost of their solar electric system under the ITC (Investment Tax Credit). A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. This is available thru December 2022.
After December 2022, we’ll see step down in the Federal Tax credit to 22% in 2023, then expiring.
- SEIA maintains a good explanatory web page here: www.seia.org/policy/finance-tax/solar-investment-tax-credit
- The primary IRS site for residential solar tax credits: www.irs.gov/uac/Form-5695,-Residential-Energy-Credits
- The primary IRS site for commercial solar tax credits: www.irs.gov/uac/Form-3468,-Investment-Credit-2
Solar Financing – We are often asked if financing is available for solar projects. We will share information on low interest finance programs as we become aware of them.
Puget Sound Cooperative Credit Union – many of our clients recently have been taking advantage of the Energy Smart Loans from PSCCU. We have enjoyed the ease of working with them, and our clients have all given good reviews of the customer service. This is the personal financing we have been waiting for before being able to enthusiastically endorse using personal financing as a smart option for anyone to install grid-tied pv. You can learn more and even apply online here www.psccu.org/efficiency.php#energysmart
Home Equity Loans – Any private lending institution at market rates.