The federal government offers a 30% federal tax credit of the total installed system cost. You can claim this tax credit until the entire 30% is reached. For example, if 30% of the system cost is $6,000, and you owe $4,000 in Federal Taxes, you will get the entire $4,000 back the first tax year, and $2,000 the following year. Scroll down to see instructions on how to claim the tax credit.
As of October 1, 2017, The State of Washington now offers a new production payment incentive (for total produced electricity from your solar system) for 8 years from the installation year, up to 50% of the total value of the system.
Rates in the below table are paid by the State of Washington per kWh of total production, for 8 years after system certification. This incentive comes in the form of a check each year, and is administered by Washington State University. Commercial scale is greater than 12kW, and Residential-scale is 12kW or smaller (40 panels sized 300W). The administration process of the system is being finalized, but payments will cover all production from the time that your utility installs the production meter and the system is turned on. Click here for more information about this incentive.
For example: You install a 6kW system (20 panels sized 300W) at your home or business in the mid Columbia and Yakima river valleys with a southfacing panel orientation. Assuming that you install it this year, you will receive roughly between $1,000 - $1,500 each year for 8 years up to 50% of the system cost. Contact us to set up your complimentary energy evaluation where we will calculate your specific expected incentive and system cost.
Instructions for the Federal Income Tax Credit:
To claim the credit, fill out IRS form 5695, and submit it with the final invoice with your tax return. The value from Line 6 of form 5695 goes on Line 53 of the tax return IRS form 1040. See the below screen shots for example values.