80% of Your Entire Solar Energy System Will Be Paid By Incentives
Washington offers some of the best solar incentives in all of the United States – current incentives pay for 80% of your total system cost. Homes with good sun exposure will generally pay off in 4-7 years giving you about two decades of free electricity.
30% Paid for by Tax Credit
The Federal Tax Credit is a dollar for dollar tax benefit that is guaranteed by federal law.
For example, if your solar energy system was $30,000 (systems generally range between $18,000-$30,000) $30,000 X 30% = $9,000.
Let’s say in April you owe $10,000 in taxes. $10,000 - $9,000 = $1,000.
Now you only owe $1,000 in taxes.
What’s better is that if you don’t owe that much in one year you can roll it over to the next. In the same example, let’s say you only owe $6,000 in taxes this year. You can apply $6,000 this year and the extra $3,000 next year.
50% Paid for by Washington State Incentive
Every year you will receive a check for the energy you produce – until you reach 50% of your system cost or 8 years whichever comes first. With our competitive prices almost all of our system owners will reach 50% first.
Passed into law in July 2017, the Washington State Production Incentive gives you $0.21/kwh for all the energy your system creates.
For example, half of your $30,000 system will be $15,000. And your system will most likely produce around 12,000 kwh/yr with good sun exposure.
12,000 kwh/yr X $0.21/kwh = $2,520/yr.
This means you’ll get a check every year for $2,520 until you’ve received $15,000.
The incentive is guaranteed by state law (the rate cannot be lowered), and once admitted into the program, your project’s full allotment is set aside.
20% Paid for by Energy Savings
The remaining 20% of the system will be paid for by electrical savings. This is money you don’t have to pay the utility company because you’re producing your own energy.
For example, if your system is producing about 12,000 kwh/yr and the typical cost for electricity in Washington is $0.10/kwh.
12,000 kwh/yr X $0.10/kwh = $1200/yr. That’s $1,200 you’re not paying the utilities every year.
Over the life of the system, your electrical savings will pay off your principle, and then save you about $29,000 in electric bills.
Net metering makes the utility company work for you – essentially becoming your battery. Excess power you make goes back onto the utility grid for credits. Build up lots of credits in the sunny, summer months to use in the winter months. Either way all the electricity you produce receives the Washington State Production Incentive.