Are There Still Financial Incentives for Installing Solar? Yes!

State sales tax exemption: Washington provides a sales tax exemption for solar energy systems, including rooftop solar panels,other materials and their installation. The exemption is available through 2029 and is usually provided through your contractor. You can request a refund if you are charged sales tax on eligible materials.

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Residential renewable energy tax credit: The federal government first enacted a solar investment tax credit in 2006, which allows people who install solar panels on their homes or businesses to claim a reduction in the income taxes that they would normally pay to the IRS. The amount of this reduction is capped at 30% of the amount invested in the solar array.

 

WA’s Community Solar Program Might Save You Money

Olympia Community Solar’s non-profit group purchasing model might reduce your costs and help simplify the installation process. The Solarize program is currently open to enrollment by residents of Island, Mason, Lewis, East King, Skagit, Thurstonand Whatcom counties and the cities of Bellevue, Issaquah, Mercer Island, Redmond, Sammamish, Kirkland, and Kenmore.

 

What about the Tariffs on Solar Panels?

The Trump administration tariffs on solar imports are unlikely to slow the rollout of solar power in the US. Even if it becomes a little more expensive, solar remains one of the cheapest clean energy sources. The good news is that Washington State’s solar panel manufacturing industry is growing rapidly and now supplies many local installers.

 

Where Can I Learn More?

The Dept. of Energy online Homeowner’s Guide to Going Solar is a great resource for learning the basics of residential solar installation.  Olympia Community Solar’s 11-minute video, Five Steps to Going Solar, might also be a useful starting point.  These resources and tools will help you get started, but make sure to work with solar installers for custom estimates of how much power your own system would be likely togenerate.

 

Getting Bids and Choosing a Contractor

The non-profit Solar Washington recommends getting at least three bids and checking references on all contractors that you decide to consider. Solar WA also recommends finding vetted local installers through the Washington Solar Energy Industries Association (WASEIA). You will be able to find a wide range of reputable, local solar installers through the WASEIA online tool foridentifying installers in your region.

 

Comparing Installation Bids

Solar WA offers a detailed list of Questions for Solar Shoppers and advice on comparing bids that you may find useful. Many factors go into an installer’s bid and cost structure, including labor required, the equipment used, the amount of power generated, warranties, and financing options.

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Overhead costs: Some solar equipment suppliers have high overhead costs, resulting in higher bid amounts. However, homeowners should be wary of bids significantly lower than other bids, as this may signal that an installer is cutting corners.

 

Equipment costs: The number, type and quality of panels installed can be a significant factor in the estimates you receive. Different types of solar panels produce varying amounts of electricity, and some panels last longer than others.

 

Warranties and production guarantees: Many installers provide warranties, but what those warranties include and do not include will vary. Generally, higher solar bids may include better warranties that could save you money in the long run. Some companies provide additional guarantees, such as production guarantees and coverage for any potential damage to your roof. When reviewing your bids, you should always read through warranty information carefully and check if the information you receive is clear about its coverage, process, and coverage amounts.

 

Permits and policies: Your bids should include state or local permit costs for solar panel installation or usage. Be sure to review and compare these costs across all your bids.

 

 

Anne Shields is a member of PSARA's Climate and Environmental Justice Committee and Third Act Washington.