Washington State Solar Power Rebates, Tax Credits, and Incentives

Washington State Picture

Solar Legislator Score:

Dreary cloudy Washington? It’s really not that dreary at all. Click here to check out a solar resource map for the entire Pacific Northwest region. There, you can see during the summer months especially, the region enjoys a considerable amount of sunlight. So at least our legislators there have some sun to work with! Lets turn to the current state incentives.

The Incentives
Washington State Senate Bill SB 5101 provides consumer credits for installing small scale solar power systems connected to the grid and SB 5111 provide incentives for solar manufacturers that may be interested in moving to the state of Washington. These bills passed both the Washington House and Senate in April of 2005 by landslide margins. Not one Washington state legislator voted against these bills! How could you? That’s political suicide.

If you live in Washington, here’s what you need to know about the state solar credits provided by SB 5101:

 

  • There is an annual credit available to you for producing solar power that is tied back to the grid.
  • This credit expires on June 30th, 2014 (Washington is hoping a state solar economy is built by that point which makes entry into the solar market less prohibitive. WSU will file a report to Olympia on the status of that market in 2009.)
  • You must submit a form to the Washington State department of revenue that will be forwarded to the Climate and Rural Energy Development Center at the Washington State University. To download the form, click here [pdf].
  • On that form, the DOR is gonna want to know how you’re producing this electricity and where that equipment is manufactured.
  • If your equipment is manufactured in Washington, you’ll qualify for an accelerated kilowatt credit multiplier (up to .36/KwH up to $2000 a year)

  • Within 30 days the DOR will chat with WSU and get back to you in writing to let you know if your system qualifies for the credit.

  • After you qualify (hooray!), every year by August 1st, you must apply for the incentive through your utility (Boooo!).

  • In that yearly application to the utility, you must furnish documentation of the kilowatt-hours generated by your solar system in the previous year.

  • Within 60 days of that application, your utility will notify you in writing whether that incentive payment was accepted or not.

  • Make sure you keep records of the incentives you apply for and the incentives you receive.
  • Light and power companies in Washington are not mandated to participate in these incentive programs (what? yes. Bogus!). This means you could have a bit of a challenge on your hands if your utility is not familiar with this legislation or small scale solar power systems.

  • If you’re a tenant of a building (not an owner) and install a solar system, you’re ineligible for the credit. Lame.

  • The incentive paid by the utility is not taxable. Ok, Nice!

The enabling legislation for these incentives, described by primary sponsor Sen. Erik Poulsen, D-West Seattle, as “the most progressive in America,” was passed in 2006.

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But Whoa, Not So Fast!

Well Erik, I’m here to say, 1) not so fast and 2) who are you crapping? While those power payment rates may seem huge, the annual $2,000 cap on payments per year in Washington sort of sucks. In comparison to other progressive state’s energy policies, Washington does little to offer much in terms of an across the board rebate or tax break for those installing solar systems. Some have argued that this more gradual rebate of up to $2000 per year supports long term energy efficiency instead of just getting solar panels on roofs. However, in my opinion, there aren’t many businesses that can make the upfront financial investment necessary to justify the cost without such a rebate. For example, in Oregon, there’s a $70,000 installation cap for businesses provided through the Oregon Energy Trust (Granted they aren’t paying a rate of $0.54/KwH, but hell they are at least paying up to a significant amount and the cash is available within 5 years). So in Washington, it is quite a bit more prohibitive to initially go solar – especially if you’re a business.

Installation

Already on Washington’s books are laws forgiving the state sales tax on the purchase and installation of alternative-energy equipment through 2011. Also, there are grants up to 33% provided for installation costs solar thermal electric and PV systems. They are available via “Green Tag” purchases through the Bonneville Environmental Foundation (BEF). For further information and to apply for a grant, click here. While this is good, there is a limit on the cash BEF can dole out every year.
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Solar Water Heating Rebates

Several Washington counties (Ahem, 4 out of 40) offer rebates for solar water heating systems and PVs. For example in Clallam county, solar hot water systems are eligible for a rebate of $500 for each 40 square feet of collector area installed. PV systems are eligible for a rebate of $500 for each kilowatt of capacity installed. Others:

  • Clark Public Utilities – SWH Rebate -$2000 Qualifying equipment must meet certain specifications.
  • Franklin PUD – SWH Rebate- $500 for a solar water heater with minimum 40 square foot collector.
  • Grays Harbor PUD – SWH Rebate – $600 for solar collectors of 40 square feet or more

Solar Water Heating Financing

Again, in a sparse amount of Washington counties, there are loans available for solar hot water heating systems:

  • Clark Public Utilities – Solar Loan Program-Max $4000- 5% 60 mo.
  • Franklin PUD – Energy Loans Max: $7000- 3% APR or 6% APR when loan combined with rebate program. Max. $850 (in the form of rebate or buying down loan from 6% to 3%).
  • Grays Harbor PUD – SWH Loan Maximum Loan Amount: $4,000 Terms: 3.5%

Consensus

There could be better a lot more done to spur on homeowner and small business solar implementations in Washington state. Specifically, if the state of Washington worked with the utilities in a similar way that Oregon has, there could be better incentives for businesses. Hopefully, more catalyzing legislation winds up in Olympia in the coming years.

Click here to have multiple solar installers bid to upgrade your Washington home or business.

14 comments.

corrina
Comment on June 7th, 2008.

WA, we need to get with the program!

Tom
Comment on August 27th, 2008.

we are purchasing a Mobil home in Either franklin or benton cvounty in Wa we are seniors the mobile home is new what are the incentives for us to install solar power

Mike
Comment on October 30th, 2008.

Do you honestly think that solar needs to be propped up the way coal and nukes have been? We are in the energy mess we are in because of poorly though out subsidies (to coal, oil, nukes,and natural gas, and ethenol. Why not fight against wasteful subsidies, instead of trying to create yet another subsidy dependent pig at the trough? The Carter solar hot water subsidies created a bunch of tax shelter systems, and the industry went broke when, they were eliminated. You really want history to repeat itself????…..lets try a bit more creative thinking, directed toward local sustainablility, local jobs, and money staying in your communites. Right now the Federal, and most state incentives, promote installation by out of state carpetbaggers, poorly designed systems that underproduce, and move rate payer money directly to china, where “clean” energy solar is manufactured by coal fired electricity and shipped half way around the world by tankers driven by bunker fuel. Typical large scale PV systems are financed thru operations like Goldman-Sachs… not exactly keeping the money local.

Comment on November 8th, 2008.

There is an organization in Washington Sate that brokers Green Tag’s or REC’s for Washington based solar systems. The Green Tag Foundation (GTF) is paying .20 cents/kwh for green tag’s. That is well above what Bonneville Environmental Fund (BEF) is paying. GTF offers five year agreements for tax free cash on production of REC’s. email: greentagfoundation@gmail.com

Comment on November 23rd, 2008.

Hello,

Our company designs and manufactures electrical control systems and control panels. We are a UL listed manufacturer and are very interested in teaming up with “green” technology companies and keeping the money in the US. Let me know if we can be of any assistance to further your vision.

Comment on March 10th, 2009.

Thanks for all you are doing to educate, legislate and get people talking. I am just starting to learn about solar and am thankful to have found your site. I will recommend it to others asking.
I would like to have you on our links page, let me know.

Comment on March 10th, 2009.

Heidi,

Thanks for your thanks! That means a lot to us. Of course, we’d love a link from you.

Cheers,

- Dan

Pingback on April 5th, 2009.

[...] http://www.solarpowerrocks.com/washington/ [...]

Bryce
Comment on April 13th, 2009.

Hello, I am doing a school project on Solar power in economics class and I appreciate this site, but I need to cite sources. Who wrote this article?

Comment on April 13th, 2009.

Hi Bryce. I wrote this article. I mostly dug up information straight from the Washington legislative website. Check their site out by clicking on one of the above bills that passed.

Dennis Sperry
Comment on April 13th, 2009.

I would like to put up the pvc solar on my house to tie into the grid. But I don’t see the economics. The cost is too hight and pay back time to long! Even for a place like Yakima, Wa. with 300 days of sun. Maybe I’m wrong but thats how I see it. Thanks Dennis

Bryce
Comment on April 19th, 2009.

Thanks

mike novak
Comment on April 21st, 2009.

This is all quite interesting. Having lived in Omaha since 1991 and now in Washington State. I use to EF&I hot water and hot air systems for living. I did great until the tax credits went away. If my memory serves me correctly the state offered 30% tax deduction and the feds were 40%. The systems worked great and people were extremely pleased of their purchase.

So why is it so difficult to move the tax incentives forward and start the building process?
Be Cool, Rhino

Mark
Comment on April 25th, 2009.

I’ve been looking for Solar Panel installer classes for WA cert. I’ve been unable to find one. I’m looking for a way to get into the field but so far no real luck except “send me your money and we’ll get you certified.” I’ve rebuilt @15 houses in my “spare” time- but I’ve owned them all- so no contractors licence. Thoughts?

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