Do you live in Washington and want to go solar? Great news – Washington has ambitious plans to dramatically expand solar energy, and incentives that can help you maximize savings on solar panel installation costs.
Let me walk you through exactly how you can take advantage of these policies as a Washington resident. With the right strategy, you can save over $16,000 over 25 years!
Washington Is Boosting Solar Energy Production
Solar currently accounts for less than 1% of Washington‘s energy mix. But that‘s set to change very soon.
Here are the state‘s solar plans:
- Washington aims to triple solar energy generation over the next 5 years.
- By 2045, Washington is targeting 100% clean, renewable energy statewide – including major growth in solar.
Driving these goals are updated renewable portfolio standards passed in 2019 after prior standards expired. The legislation sets interim targets to phase out coal by 2025 and achieve greenhouse gas neutral electricity by 2030.
This means Washington needs solar panels installed on as many roofs as possible in the coming years!
Solar Incentives Can Save You Over $16,000
So how much can you save with solar in Washington? Here‘s a breakdown:
- The average Washington home uses 10,700 kWh of electricity per year, costing roughly $1,209 at an average rate of $0.113 per kWh.
- Installing a 6 kW solar panel system would generate around 8,100 kWh per year.
- By using your own solar power instead of grid power, you could reduce your annual bills by about $916.
- Over 25 years, that adds up to over $22,900 in utility bill savings!
And that‘s not all – factoring the 30% federal tax credit and state sales tax exemption saves you about $7,500 more.
Total 25-Year Savings: $30,400
Let‘s explore the incentives and policies that make these savings possible.
30% Federal Solar Tax Credit
The federal solar tax credit, also called the investment tax credit (ITC), lets you deduct 30% of your solar installation costs from your federal taxes.
For a 6 kW solar panel system costing around $16,620 after installation, a 30% tax credit would amount to $5,000 in tax savings.
The ITC lasts until 2032 before being reduced, so act now to maximize savings! This credit alone offsets about a third of your total system costs.
What Incentives Does Washington Offer?
While the federal tax credit goes a long way, Washington also offers some excellent state-level solar incentives:
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Net Metering: Washington requires utility companies to provide full retail rate reimbursements for any excess solar energy fed back to the grid. This makes your system more profitable.
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100% Sales Tax Exemption: You pay no sales tax on solar equipment, installation labor, or other related costs. At 9% sales tax, that‘s $1,500 in savings for a 6 kW system.
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Community Solar: Washington has committed $100 million to community solar projects you can subscribe to. Early subscriptions will likely see the best rates.
While upfront rebates aren‘t offered yet, they may come as part of upcoming policy changes.
Solar Panel Installation Costs
System costs can vary greatly depending on your specific home, but here are the typical range of costs for solar installations in Washington:
| Solar Panel System Size | Range of Costs |
|---|---|
| 2 kW | $5,500 – $7,000 |
| 4 kW | $11,000 – $14,000 |
| 6 kW | $16,500 – $22,000 |
With incentives, you can take about 25% off those system costs.
To determine the optimal solar panel system size for your home, get a detailed site assessment from reputable local solar installer.
Most homes need at least 4-6 kW to offset a majority of their energy usage. You can also add battery storage to enable power at night.
Bottom Line
- With generous federal tax credits and budding state-level policies, there‘s never been a better time to go solar in Washington.
- Residents stand to save $22,900 over 25 years from lower utility bills plus an additional $7,500 from tax deductions and exemptions.
- As solar ramps up over this decade to provide 100% renewable energy by 2045, early adopters will lock in the highest savings.
I hope this overview gives you a clear sense of Washington‘s exceptional solar incentives. Please let me know if you have any other questions!
