Why Solar Works Well in Seattle
February 14, 2023
Seattle, known for its iconic Space Needle and year-round rain, is an unlikely city for solar energy. But Emerald City is a prime location for harnessing the sun’s power! It has enough sunlight that the state can quickly shift to solar energy to cover transportation, residential and business need.
The olar panels convert sunlight into electricity, and the amount of sunlight that reaches the ground is measured in “peak sun hours.” Seattle may have fewer peak sun hours than other cities, but it still has enough to make solar a viable option.
Rooftop solar with a great view of the mountain side.
In addition to the environmental benefits, it provides numerous financial help to homeowners. By installing solar panels, homeowners can significantly reduce or even eliminate their monthly electricity bills. It saves them money and protects them from future utility rate hikes.
It is also a great way to increase the value of your home. Studies have shown that homes with solar panels sell faster and for higher prices than homes without them. Besides, solar energy provides homeowners with energy independence and security. By generating their electricity, homeowners can avoid power outages and brownouts caused by the traditional electrical grid.
So, don’t let Seattle’s reputation for rain fool you. This city is an excellent place for solar energy. Therefore, I am here to enlighten Seattle’ residents about the golden benefits of going solar.
Cost and Savings:
The financial aspect of installing solar panels in Seattle, Washington, is brighter than other benefits. It’s vital in convincing many residents and business owners to shift from traditional electricity generation to solar energy. So, let’s talk about it.
The cost of installing solar panels in Seattle varies depending on the size of the system, the type of panels you choose, and other factors. On average, a solar system in Seattle can cost anywhere from $11,000 to $22,000, depending on these variables. However, the good news is that several financing options are available to help make solar more accessible and affordable.
For example, you can pay upfront in cash, giving you the most significant savings. Or, you can finance your system with a $0-down loan, which allows you to save on your electricity bills immediately, even if you still need to pay off the system entirely.
In addition to these financing options, the state of Washington offers several financial incentives and tax credits to help make solar more affordable. For example, a federal tax credit covers 26% of the cost of your solar system, which can significantly reduce the upfront installation cost. Additionally, Washington state offers a sales tax exemption for solar energy systems, which can save you even more money.
When you add it all up, over 20 years, you can expect to save $7,044 by installing an average-sized solar system in Seattle. It includes the money you’ll save on your electricity bills and the various financial incentives and tax credits available in Washington.
So, as you can see, solar panels are worth it in Seattle! Not only do they help you save money on your electricity bills, but they also allow you to reduce your carbon footprint and do your part to protect the environment. Hence, solar panels are the best if you’re interested in transitioning to clean energy that doesn’t cost much and provides financial benefits.
Government Incentives:
Since fossil fuels have several disadvantages, the government is taking all possible actions to promote solar energy. Similarly, Washington state provides several tax credits and incentives to solar owners. So, to cash out your investment in solar panels, you must check out these incentives. Here is a breakdown of federal incentives for residents and business owners in detail. So, let’s have a look.
Washington State Production Incentive:
This incentive provides eligible homeowners with a per kilowatt-hour (kWh) payment for the energy produced by their solar panels. The payment amount is determined by the size of the system and the number of peak sun hours in your area.
Federal Tax Credit:
The federal government offers a tax credit for individuals who install solar panels on their homes. This tax credit is equal to 26% of the cost of the solar panel system and can be claimed on your federal tax return.
Besides, Federal Investment Tax Credit allows homeowners and businesses to receive a credit of 30% of the total cost of the solar energy system. The remaining credits can be applied to the next tax year if a homeowner has more tax credits than tax liability. However, it’s only available until 2032, after which the credit amount decreases to 26% in 2033 and 22% in 2034 before expiring in 2035.
Tax Exemption:
With its sales tax exemption for solar installations, Washington State offers a unique opportunity for residents to embrace clean energy and save on costs. Effective July 1st, 2019, homeowners can harness the sun’s power and generate electricity for their homes without paying a penny in sales tax on qualifying solar systems’ purchase and installation costs.
This exciting initiative applies to systems that generate up to 100 kilowatts of AC of electricity, making it accessible for most homes. The sales tax exemption is available until December 2029, so there’s plenty of time to take advantage of this fantastic opportunity.
For those with larger solar projects, generating between 101-500 kilowatts AC, don’t worry! You still have the chance to benefit from a 50% sales tax exemption after January 1st, 2020.
A solar array of just 5 kilowatts for the average American home is enough to offset the total energy consumption. With a project of that size, homeowners can expect to save more than $2,000 on purchase and installation costs. That’s an average savings of a whopping 8%!
Business Energy Tax Credit (BETC):
This tax credit is available to businesses that install solar panels on their buildings. The BETC provides a tax credit equal to 35% of the cost of the solar panel system, with a cap of $1.5 million per project.
Federal Tax Deduction for Commercial Buildings Under USDA REAP Grant:
Businesses that install solar panels on their commercial buildings can claim a federal tax deduction equal to the lesser of their tax liability or the cost of the solar panel system. Additionally, the Rural Energy for America Program offers grants to cover up to 25% of the system cost or loan guarantees of up to 75% of the total eligible project costs for agricultural producers and rural small businesses. These grants can reduce operating costs and improve sustainability.
WA Net Energy Metering (NEM)
The state of Washington allows residents to receive credit on their utility bills for any excess energy their solar system produces. It means that you’ll receive credit on sunny days when your panels make more energy than you’re using. You can use this credit to redeem the amount of energy from the provider later. However, the credits reset each year to 0.
MACRS for Solar (Commercial Only):
For commercial properties, there is the Modified Accelerated Cost Recovery System (MACRS) for Solar, which is a depreciation system used for tax purposes. Qualifying solar equipment can be depreciated over five years. It allows the business to recover some of the asset’s cost over time and reduce its tax liability.
Support for Clean Energy:
Seattle is making strides toward a more sustainable future, and it’s all thanks to the city’s focus on clean and renewable energy. From solar panels on rooftops to wind turbines in the distance, Seattle is leading the way in the transition to a cleaner, greener future.
But what does this mean for Seattle residents and businesses? It means lower energy bills, a smaller carbon footprint, and a more sustainable community. The city has put in place various initiatives, policies, and programs to encourage the adoption of clean energy, and the results have been nothing short of amazing.
However, since every step counts, How can you get involved and show your support for clean energy? Well, The answer is Solar Energy.
Going solar is a fantastic way for Seattle residents to impact the environment and reduce their carbon footprint positively. By harnessing the sun’s power, residents can generate clean and renewable energy that doesn’t emit harmful greenhouse gases into the atmosphere. These greenhouse gases, such as carbon dioxide, contribute to climate change and negatively affect our planet.
With a solar panel system, Seattle residents can generate their electricity, reducing the amount of energy they need to pull from traditional, non-renewable sources such as coal, oil, and natural gas. By doing so, they can significantly reduce the dependence on fossil fuel-generated electricity and pollution emitted into the atmosphere and do their part in helping to protect the environment.
Increased Property Value:
Suppose you’re a Seattle resident considering going solar. In that case, you’ll be happy to know that installing solar panels can bring many benefits, including a boost to your property value!
Homes with solar energy systems are highly sought after by eco-conscious buyers who want to reduce their carbon footprint and save on their energy bills. With the increasing popularity of renewable energy, having solar panels on your property can make it stand out from other homes on the market.
And the good news doesn’t stop there! Studies have shown that homes with solar panels tend to sell faster and for higher prices. Some estimates show that homes with solar systems can command a premium of up to 4.1% over their non-solar counterparts.
This increase in value can be attributed to several factors, including the cost savings that come with having a solar panel system, the reduction of carbon footprint and the trend towards renewable energy sources.
A solar panel system provides financial benefits for the homeowner and makes the home more attractive to potential buyers. Many homebuyers are looking for energy-efficient homes, and having solar panels indicates that the house is eco-friendly and cost-effective.
Furthermore, the Seattle Housing Authority found that the presence of solar panels on affordable housing developments increased property values by 15%, providing both environmental and economic benefits for the community.
If you’re looking to sell your property in the future, investing in solar panels can give your property a competitive edge and help you get a better return on your investment. And even if you’re not planning to sell, you can still enjoy the financial benefits of reduced energy bills and increased property value.
Abundant Sunlight:
Seattle residents! Maybe all those cloudy days would mean limited opportunities for solar energy production, but that’s not true! Despite its clouded weather reputation, Seattle still receives ample sunlight to convert into electricity that can power your homes and businesses.
Recent studies show that Seattle gets an average of 2-3 hours of direct sunlight daily. That may not sound like a lot, but it’s enough to generate substantial amounts of clean, renewable energy through solar panels. With technological advancements, modern solar panels are designed to work even on cloudy days.
Studies have shown that Seattle receives an average of about 40% of the total possible amount of sunlight, which is more than enough for solar panels to function effectively and generate clean energy. And, with the right system in place, you can harness this abundant sunlight and turn it into a powerful tool for reducing your energy bills while also doing your part to support the environment.
Not only that but going solar in Seattle can also significantly impact your wallet. By harnessing the sun’s power, you can save on energy bills and support a sustainable future. And if you’re thinking about selling your property in the future, installing solar panels can make your home or business even more attractive to potential buyers.
So, don’t let the clouds fool you. The abundant sunlight in Seattle is a prime opportunity for you to go solar and switch to clean, renewable energy. And, let’s not forget, by going solar, you’ll be taking advantage of solar energy that is reliable and limitless. So, whether you’re a homeowner, business owner, or just someone who cares about the planet, now is the time to start thinking about going solar in Seattle!
Recent Blogs
- What is Solar Energy?
- 5 Benefits Of Going Solar
- How Can Solar Save You Money?
- Guide to Green Energy Tax Credits and Incentives for Homeowners
- 7 Budget-friendly Sustainable Upgrades for Your Home
- Why is Alternative Energy Important
- Why Solgen Power is the best choice for residential solar?
- How Do Solar Panels Work?
Links
Links
Solgen Power is a solar energy equipment company that sells and installs solar for homeowners. Solgen Power has been recognized by INC. 5000 as one of the fastest growing companies in the nation. Solgen Power has grown nationwide and continues to provide excellent customer service to homeowners.