Financial Incentives

FEDERAL SOLAR INCENTIVES

30% Federal Income Tax Credit

Home owners across the Nation may claim a credit of 30% of the cost of solar systems  installed on a residence that is owned and used as a residence by the taxpayer. Costs may include labor costs for on-site preparation, assembly or original system installation, and for wiring to interconnect a system to the home.  If the credit earned by the system exceeds  a single years tax liability, the excess credit may be carried forward to the following taxable year.

For a list of State and local incentives across the U.S. please visit DSIRE

WASHINGTON STATE SOLAR INCENTIVES

In 2005, Washington State enacted I-937 to promote the development of a local solar industry, including new jobs and clean, renewable power generation.Today, Washington has some of the most progressive solar incentives in the United States.You can receive up to $5,000 annually in incentives from your local power company and sales tax exemptions when you purchase itek Energy solar equipment that is made in Washington State. Plus, there are additional federal incentives and credits that can save you even more.

 

Washington Sales Tax Exemption

With the passing of the Energy Policy Act in 2005 Washington exempts all equipment used to produce solar power, and all labor and services related to the installation of that equipment, from all sales and use taxes.

Washington State Solar Production Incentive

Solar systems installed with both Washington-Built panels and inverters qualify to receive payments of $0.54/kWh produced up to $5000 per year.

In addition to being paid $0.54/kWh, your power bill will be reduced by the amount of power your system produces. If your system produces more than what your home consumes the utility will credit your account for the power you added to the grid.

The savings can be even better for businesses talk to an installer in your area to learn why.

Local Incentives

In addition to the Washington State production based incentive many local PUD’s are offering their own production-based incentives.  Check with your local PUD or Utility for additional incentives.

Property Value Increase

new study published Lawrence Berkeley National Laboratory, that looked at home sales cross comparing prices at which house that had installed solar went for compared to those that did not.  The study’s data set was over a 8 1/2 time frame using a 3.1 kW average system size and found that on average solar homes went for $17,000 more than their non-solar counterparts.

MINNESOTA SOLAR PV INCENTIVES

The State of Minnesota launched its Solar Incentive Program in 2014.  The 10 year, $15 million per year program was one of several initiatives enacted by the 2013 legislature to increase deployment of solar energy throughout the state in order to help meet its requirements calling for 1.5% of electric sales from investor –owned utilities to come from solar electricity by the year 2020. The program is intended to boost the state’s solar market as well as make solar more affordable for Minnesota residents and businesses.

Minnesota Solar PV Production Incentives are available to customers of these investor-owned utilities:

  • Xcel Energy
  • Alliant Energy
  • Minnesota Power
  • Otter Tail Power

Solar modules installed must be certified as Made –In –Minnesota.

Systems must be less than 40kW (kilowatts) to qualify.

Applications must be received between January 1 – February 28 each year through 2023 and are selected by lottery.

Incentives for solar PV are performance-based, established by a system’s energy production, and paid over 10 years.  Owners of an approved and installed PV system will receive payments annually by July 1st based on the kWh output of the system in the previous calendar year.

The structure for payments to the customer is based on the amount of kilowatt hours (kWh) produced annually for 10 years.   By March 1st each year, the participating utility in which the solar PV system is interconnected with will annually record and submit to the Department of Commerce a record of the energy produced by the system from January 1 – December 31.  The Department of Commerce will use the amount of energy produced to calculate a PBI amount and send a check to the customer by July 1st.   Renewable Energy Credits (REC) associated with the energy provided to the utility for which an incentive payment is made belong to the utility.

For more information please visit the Made in Minnesota webpage. Applications for the solar electric incentives and solar thermal rebates will be posted on that webpage.

Questions can be directed to the Department of Commerce Energy Information Line: 651-539-1886 or toll free at 1-800-657-3710. Or email questions to solar.help@state.mn.us

 

 

 

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