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 were charged sales tax on eligible materials or purchased these yourself. Check out the Washington Department of Revenue application for sales tax refund form for more details.
Residential renewable energy tax credit: The federal government first enacted a solar investment tax credit (ITC) 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. More information on the tax credit is available on the IRS Residential Clean Energy webpage.
WA’s Community Solar Program Might Save You Money
Solarize is Olympia Community Solar’s nonprofit solar energy group purchasing model that reduces your costs and helps simplify the installation process. Solarize is currently open to enrollment by residents of Island, East King, Skagit, Thurston and Whatcom counties and the City of Kenmore. If you qualify and decide to enroll, we would appreciate hearing about your experience!
What about the Tariffs on Solar Panels?
The Trump administration is imposing sky-high tariffs on solar imports from Asia but, at least for now, experts predict that the added costs 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. Located in Bellingham, Silfab Solar is one of the largest solar panel manufacturers in North America. Another manufacturer, Itek Energy, is producing solar modules that are a popular choice for local installations.
Where Can I Learn More?
The DOE 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 Solar, might also be a useful starting point, and they also have a free online resource, the SUN Solar Owner’s Manual.
You might want to begin by estimating how much power you can generate at your house. The National Renewable Energy Laboratory offers the PVWatts tool to estimate the energy production and cost of photovoltaic (PV) systems for any address in the world. It allows homeowners, installers, and others to estimate the performance of potential PV installations and compare solar costs to utility bills. You can even estimate the amount of money you might save based on your energy consumption, using DOE’s guidance.
These resources and tools will help you get started, but make sure to work with a solar installer for a custom estimate of how much power your system would be likely to generate.
Getting Bids and Choosing a Contractor
Solar Washington, a non-profit organization, 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).
The national office at Third Act is partnering with Boston-based EnergySage for installation bids, but we found that a number of reputable WA installers, regional and statewide, do not elect to provide bids through EnergySage. We think you will be able to find a wider range of reputable, local solar installers through the WASEIA online tool.
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.
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.