– 26% Federal Tax Credit expires Dec. 31, 2022. Average of ~$5000 per Residence.
– Net Metering, aka Bill credit from the electric utility. No expiration date.
– No sales tax.
– Increased home value. Also, property tax assessment exempt.
– Associated electrical upgrades, e.g. batteries, also qualify for the 26% Federal Tax Credit.
– 26% Federal Tax Credit. Average value ~$5000 per Residence.
– Free power, aka Bill credit from the electric utility. No expiration date.
– No sales tax.
– Increased home value. More good news: Property tax assessment exempt.
– Associated electrical upgrades also qualify for the 26% Federal Tax Credit.
A Winter Solstice surprise!
On Dec. 21, 2020, Congress passed an omnibus spending and COVID relief bill. The bill was thousands of pages long. It included a new schedule for residential and commercial Solar Investment Tax Credits (ITCs).
The 26% Solar ITC is now being offered through the end of 2022. It also applies to storage, aka batteries, included with your solar project. That’s extra good news!
Solar’s Federal Tax Credit was slated to drop to 22% at the end of 2020. Industry advocates and their friends in Congress came to the rescue!
The Palmetto State is a blooming solar market. 🌼
Financial incentives have been a game changer. Many South Carolinians with solar installations get a combined state and federal tax forfeiture of at least 51%1 of the total cost of the purchase of a solar system.
There were 1,160 installations in 2016, 18,000 in 2019 and a forecast of 40,000 before 20242.
Solar at the beach! Ocean adjacent systems may use system components that are more resistant to saline conditions.
But also…Fresh rain cleans your panels!
South Carolina has huge solar potential but has opponents. Can you guess who doesn’t want competition in the energy marketplace?
Recently, a collective of solar-friendly entities was able to successfully lobby on behalf of the state’s utility customers. State Regulators rejected the latest appeal of the private utility companies who want to continue their monopoly on power delivery.
For example Dominion Energy’s attempt to attach financial penalties to their customers that adopted solar was officially and significantly delayed in May 20213.
Sources:
The 2019 State Legislature passed 2 new laws related to Solar. The bills promoted renewables in Washington State and sought to create greater confidence in interactions between multiple entities. Adopting solar now has its advantages, however if you must wait, a new Sales tax exemption will sweeten a solar contract drafted in 45 days or so.
The Solar Fairness Act pertains principally to Net Metering. Get credit for all the electricity you generate. Some utilities in our state had exceeded the legal threshold and therefore were under no obligation to grant credits to new participants . Now we can all interact with greater confidence. The existing state law threshold was very low. This new legislation raised it from .5% to 4% (or June 30, 2029 – whichever comes first). Here is the Solar Installer of WA’s bill digest. Way to go solar citizen lobbyists!
100% Clean Electricity Act. This ambitious 100% clean electricity mandate is a source of celebration for Governor Inslee and progressives. The framework propels a grid that uses clean renewable power. Within this law we have now established a Sales Tax exemption and a Remittance structure for various sizes of installations. See the savings on your solar contracts and invoices for the next decade. (Project must be completed by Dec. 31, 2029)
Please refer to this Solar Installer of WA recap for more details on these new laws.
Solar at work!
Solar above Tacoma Narrows
Wanting some solar? A new WA State Incentive program was launched October 2017.
The plan was to have a four year offer, until the $110-150M was maxed out.
Yet…
July 2018 status report by WSU Energy Program shows the program is almost 75% subscribed. Seattle City Light is over 50% full, and PSE is 65%. PSE is the state’s largest electric utility.
The offer of cash paid for solar kWhs will end once capacity of your utility or the state program monetary cap is reached, whichever comes first.
The rate of solar adoption since Oct 2017 is quicker than expected.
Washington State has a steady, sustainable solar industry. The solar systems that you see on the region’s rooftops were most likely installed by homegrown solar contractors. Contractors utilize an emerging labor force with journeyman electrical certifications. The components are manufactured here or sourced from local distributors. Installing solar in WA State supports local jobs, the local economy, and of course the local environment.
Recently it became apparent that the Incentives put in place in 2007 were well used but becoming exhausted. Electric utilities, solar entities, and various community supporters joined together in an effort to pass a Solar Jobs Bill in 2018. There was much deliberation in this year’s Special Session, something the insiders like to call a “solarcoaster”. Yet in the wee hours of the session’s final night, the Legislature did pass the Solar Jobs Bill (SB 5939).
The terms of this Bill’s new Incentive package took effect October 1 and therefore gives solar a pathway forward. As an avowed environmentalist and local solar estimator, it is encouraging to see the state banking on solar! We always can and should do better, and allowing people the opportunity to create renewable energy at the source is wisdom in action.