In may 2017, Washington enacted Senate Bill, establishing production incentives for individuals, businesses, and local governments located in Washington state that generate electricity from solar power. The incentive will pay the producer $.21 per kilowatt-hour, capped at $5,000 per year for eight years up to 50% of solar system purchase price for eight years for electricity produced using solar modules manufactured in Washington State.
Washington's net-metering law applies to systems up to 100 kilowatts (kW) in capacity that generate electricity using solar. All customer classes are eligible, and all utilities - including municipal utilities and electric cooperatives - must offer net metering. Net excess generation (NEG) is credited to the customer's next bill at the utility's retail rate. However, on April 30 of each calendar year, any net remaining is surrendered to the utility without compensation to the customer. The electricity produced by a meter-aggregated customer (more than on meter on the same property) is first used to offset electricity provided by the utility to that customer; any excess kilowatt-hous from a billing period will be credited equally to the customer's remaining meter.
FEDERAL TAX CREDIT
A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy b the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year to 2016. It is unclear whether the unused tax credit can be carried forward after then. There is no maximum credit for systems placed in service after 2008. Systems must be place in service before December 31, 2016. The home served by the system does not have to be the taxpayer'sprinciple residence.
Copyright 2017. Sun Tracker Northwest. All rights reserved.