When you combine the Washington State’s solar power incentive program with Federal solar incentives, offsetting your electric usage, and locking in escalating utility rates, the Seattle and Puget Sound area makes sense as a secure green investment.
Washington State Solar Incentives
Washington State has a new solar incentive program that rewards homeowners 6.5% to 10.4% for going solar in the form of a sales tax exemption! This is a $2,000 incentive, for a typical sized system. The exemption is included in the 100% Clean Energy Act, signed into law on May 7, 2019. All systems installed after June 30th will be 100% exempt from state sales tax, resulting in a lower system cost and a faster payback.
The Clean Energy Act is also a huge win for clean energy because it mandates that all electrical utilities in Washington State transition to 100 percent, carbon-neutral electric supply by 2030, and 100 percent carbon-free electricity by 2045!
26% Federal Tax Credit
NOTICE – The tax credit will be reduced to 22% for the 2021 tax year.
Solar power is now an even smarter, more affordable investment, thanks to the Federal Government! When you go solar, you can take a tax credit on your next tax filing, whether that is tomorrow or months away. If your system in installed in 2020 you will be entitled to claim a 26% tax credit from the total cost of your solar system. You can spread the tax credit through the succeeding taxable year, in the event you do not have enough tax liability in the current year. This ensures that you receive the maximum benefit possible under this great solar incentive program! The tax credit decreases to 22% in 2021 and 0% for 2022 and afterwards.
All Solar electricity generated that is not used at time of generation will be fed back to the utility grid, so that your green power can be used by other people. During these times, your utility meter actually will run backwards, thus crediting you for this surplus power. Your utility bill at the end of the month will be the difference between what you generated and consumed. For those summer months when you generate more than you consume, these credits will be forwarded to you the next month. No matter whether you use your solar energy or feed it to your neighbors, you eventually get to use all your solar energy and credits you build up during the sunny days and months.
On April 30th, 2019, Governor Inslee signed the Solar Fairness Act into law, raising each utility’s net metering threshold to 4%. This is an 8x increase over the previous threshold 0.5%, creating a level playing field for clean energy, by allowing solar projects to continue benefiting from net metering.
5-Year Accelerated Depreciation for Businesses
Businesses qualify for a full 5-year Modified Accelerated Cost Recovery System (MACRS) depreciation tax deduction on 85% of the cost of the solar system. Some home-based businesses can qualify, too.
Increased Appraised Value of Your Property
Adding a solar energy system to your home adds to the resale value of your home and makes it more attractive to prospective buyers. Interested in saving money and helping the environment? Call Sunergy Systems today at (206) 297-0086 to take advantage of these great cost-saving solar incentives. Going solar makes dollars and cents!