If you live in Washington State and are considering going solar, now is the time! Check out this quick interview with our Director of Business Development, Markus Virta:
Looking for more detail? Here’s what you need to know:
The recently passed Republican tax bill did not change the 30% Federal Solar Investment Tax Credit (ITC), continuing the availability of the credit at its full rate. This tax credit allows a solar customer to recoup 30% of the total cost of the system through the end of 2019, after which it will be reduced to 26% for systems installed in 2020, followed by 22% for systems installed in 2021.
Locally, Washington State recently updated a key solar jobs bill aimed at making solar more affordable for homeowners and small businesses. This bill provides a guaranteed long-term funding package for solar customers.
This updated incentive program is open to any residential or commercial solar project installed before the end of June 2021, however the rates are lowered year by year for new customers. New solar customers will be locked into a set rate based on the year their system was installed and can expect to receive payments for up to eight years or until 50% of the cost of the system is recovered, whichever comes first. This means, the sooner a system is installed, a customer can expect a higher rate of return.
Washington residents considering installing solar on their home or business will receive the best return on investment if their system is installed before May 31, 2018. (Shooting for no later than the end of May allows for scheduling and administrative flexibility.) The payout rate for the 2019 fiscal year, beginning July 1, 2018, will reduce from $0.21 per kilowatt-hour to $0.18 per kilowatt-hour for systems using solar panels manufactured in Washington State. When combined with the available tax credit, systems installed before the incentive rate reduces can expect to receive up to 80% of the cost of their system back within eight years. Factoring in energy savings, typical systems see a payback in six to seven years.