Why Go Solar Now?
The following describes some exciting changes that have taken place with
respect to federal and state solar financial incentives in the last couple of
years. These provide an excellent opportunity to go solar soon!
- 30% Federal Tax Credit: In October of 2008 the 30% Federal
Investment Tax Credit (ITC) was extended until December 31, 2016. At
the same time the $2,000 cap on the tax credit was removed, thereby
increasing the amount of money available to those who invest in solar.
- Also for the Federal ITC: Until October 11, 2011, commercial solar PV
installations may opt to receive a 30% up-front grant in lieu of the 30%
tax credit. We are approaching the end of this option.
- 5 year Accelerated Depreciation on the cost of commercial systems!
- Solar PV module (panel) prices have dropped to 30-40% of what
they were a few years ago.
- Sales Tax Exemption: The current 100% Washington State sales tax
exemption falls to a 75% exemption on July 1, 2011, and returns to
our normal sales and use tax rate on June 30, 2013.
- Production Incentive: Your utility pays its customers for energy
produced by renewable energy until June 30, 2020. The price paid per
kilowatt-hour produced for an out-of-state manufactured system is
$0.15, the price paid for a system with WA-made PV modules is $0.36,
and a system that is wholly WA-made (modules & inverter) pays $0.54
per kWh. While Outback Power (Washington’s only inverter
manufacturer) is working on a grid tied inverter, they currently only
manufacture grid tied and battery backup systems. The sooner we
install solar the more you get paid before 2020!
- Last year, the Washington State production incentive program
extended the cap from $2,000 to $5,000 annually, and increased
the deadline for this production from 2014 to July 1st 2020. We are at
the beginning of the renewed time-line.
- Locally-made solar modules: As of early 2010, world-class
Washington-made solar modules manufactured by Silicon Energy are
available. Now is the perfect time to capitalize on one of the most
progressive incentive programs in the country with a top of the line
locally-made solar panel.
- Increased value of your home or business: according to The
Appraisal Journal, home value increases by $20 for every $1 reduction
in annual utility bills. So a solar energy system that saves $200 per
year would add $4,000 to the value of the home.
- Take advantage of Net Metering: If you produce more power than
you consume, your meter spins backwards and your utility will credit
your account for the excess energy generated. You can draw on those
credits during winter months when solar energy production is less. This
is the utilities’ way of giving you excess power at the retail (as opposed
to the wholesale) price.
- Keeping in mind that Washington utilities pay you for your energy
production, now is the perfect time to harvest from our long sunny