Financial Incentives & Financing

     R Net Metering
     R Utility Rebates
     R Washington State Production Incentive
     R Federal Tax Credit
     R Federal Grant in Lieu of Business Income Tax Credit for Solar PV

There are currently many financial incentives available to help off-set the up front cost of purchasing a renewable energy system.  This page will list each of the various rebate, tax incentive, and production incentive programs available for customers in Clallam, Island, Jefferson, Kitsap, Mason, and Skagit Counties.  For additional information please check out www.dsireusa.org which provides a great comprehensive overview of financial incentives available in Washington State and elsewhere in the country.    

Power Trip Energy will handle the paperwork for all of the applicable financial incentives for our clients, and guidance to the proper federal tax forms for you and your tax professional.  This is a substantial service that is included in our turn-key installations.  There are intricacies to some of the programs that we will be happy to explain as we work with you.

Net Metering

Washington State’s net metering law allows you to connect your solar electric (PV) system directly to the utility grid and requires utilities to value power generated by your grid-tied solar electric system at the same rate per kilowatt-hour (kwh) that the utility charges you for power from the grid.  Connection to the utility grid allows batteries to be eliminated as an energy storage device.  The utility grid becomes the energy storage device.  When your grid-tied solar electric system produces less power than your home or business consumes (think short, cloudy winter days) the utility grid will provide the additional energy you need.  When your grid-tied solar electric system is generating more power than your home or business uses, the excess power goes back to the grid and you will be credited for this power production on your utility bill. 

Washington's net-metering law applies to systems up to 100 kilowatts (kW) in capacity that generate electricity using solar, wind, hydro, biogas from animal waste, or combined heat and power technologies (including fuel cells). All customer classes are eligible, and all utilities -- including municipal utilities and electric cooperatives -- must offer net metering.  

Washington State Renewable Energy Sales Tax Exemption

This is the simplest of the government incentives.  Through June 30, 2013 Power Trip Energy will not charge sales tax on the sale of solar electric equipment for systems 10 kW or less, thereby avoiding the 8.6% sales tax.

 Systems over 10 kW are sales tax exempt through June 30, 2011.  Between July 1, 2011 and June 30, 2013, solar PV systems that exceed 10 kW are subject to sales tax, but qualify for a refund of 75% of their applicable sales tax.

Solar PV systems sold after June 30, 2013 are subject to full sales tax.

Utility Rebates

Many utilities are no longer offering rebates for solar PV installations and those utilities that do offer rebates are often exhausting their rebate funds before the end of the calendar year.  It is best to check with your local utility to determine the current status of any rebate programs.  If a rebate is available, we will handle all the paperwork for you.  Here is the latest list of utilities with rebates: 

Washington State Production Incentive

In 2005 Washington State adopted the Renewable Energy Production Incentive Program (REPIP) establishing production incentives of 12¢ to 54¢ per kilowatt-hour for individuals, businesses, or local governments that generate electricity with grid-tied power systems from solar power, wind power or anaerobic digesters. In 2008, the program was extended and expanded.  The overall incentive pool is capped at 0.5% of taxable utility revenue and the incentives are capped individually at $5000 per year. These incentives are in addition to the savings you can achieve through net metering.  The production incentive rates depend upon the source of your energy and whether your equipment was manufactured in Washington State.    The incentive rates are:

• For electricity produced using out of state solar modules and inverters the rate is $0.15 per kilowatt hour (kwh);

• For electricity using solar modules manufactured in Washington state with an out of state inverter the rate is $0.36 per kwh. Note: Silicon Energy modules made in Arlington, WA are now available. To learn more to go www.silicon-energy.com;

• For electricity using both solar modules and an inverter manufactured in Washington state the rate is $0.54 per kwh.  Note:  Silicon Energy now offers a 4.2 kW batteryless inverter that qualifies as made in Washington.

• For electricity produced using a solar or wind generator equipped with an inverter manufactured in Washington state the rate $0.18 per kwh;

• For electricity produced using an anaerobic digester or using a wind generator equipped with blades manufactured in Washington state the rate is $0.15 per kwh;  

• And for all other electricity produced by grid-tied wind the rate is $0.12 per kwh.

Participation in the REPIP program is voluntary and varies from utility to utility.  Currently on the north Olympic Peninsula Clallam Co. PUD #1, Puget Sound Energy, and Mason Co. PUD #1 & #3 all participate in this program.  Participating utilities will pay the incentives to the producing customer and earn a tax credit from the State of Washington equal to the cost of those payments.  The incentives apply to power generated as of July 1, 2005, and are currently slated to remain in effect through June 30, 2020.

Links to additional information on production incentives:

·         Wash. State Dept. of Revenue REPIP Application Form

·         WAC 458-20-273 Solar Production Incentive Program

 

Federal Tax Credit