Washington State Solar Savings in 2023
April 6, 2023
As the effects of climate change become more pronounced, the need for sustainable and renewable energy sources has become more urgent. With this in mind, Washington State has set an ambitious goal of generating 100% of its electricity from clean energy sources by 2045. One of the main contributors to this effort is the growth of solar power in the state.
In 2023, Washington State is seeing a significant increase in the adoption of solar power. With the implementation of tax incentives and new policies promoting renewable energy, more and more residents and businesses are investing in solar panels.
Seattle downtown view.
This growth not only benefits the environment but also creates new jobs and economic opportunities in the state.
But the question remains: What role can the government and private sector play in ensuring a sustainable and equitable transition to clean energy? What is the progress rate of solar energy in Washington and what more it can offer in the future? Read on to find out more.
The Benefits of Solar Energy in Washington State:
Going solar in Washington state can bring about numerous benefits, both financial and environmental. With the state’s low installation costs, aggressive incentives, and various other perks, it’s no wonder that many homeowners and businesses are turning to solar energy. In this essay, we’ll take a closer look at some of the benefits of going solar in Washington.
Lower Electricity Bills:
One of the most enticing benefits of going solar in Washington is that it can save you money on your energy bills. With electricity rates relatively low in the state, the average resident pays about $95.72 per month for electricity. However, with a solar panel system, you can save an annual total of around $1,149. Over the lifespan of your solar equipment, you could save up to $10,846 or more, depending on future electricity price hikes.
Short Payback Period
Another significant benefit of going solar in Washington is that the state’s incentives and low installation costs result in a shockingly short payback period. On average, you can expect to recover your installation costs in five to six years. In addition, a 5 kW home solar system can result in lifetime energy savings of more than $50,000.
Job Opportunities
The growth of the solar industry in Washington State is creating new job opportunities across a range of fields. From installation and maintenance to design and engineering, there are opportunities for people with a variety of skills and backgrounds. With the increasing demand for solar energy systems, job opportunities in the solar industry are expected to continue to grow, providing a sustainable and rewarding career path for those interested in renewable energy.
Lower Taxes & Access to Other Incentives
Washington State offers several solar incentives that make solar panels even more valuable. For instance, the federal solar tax credit (ITC) is a credit to your federal income taxes that totals a massive 26% of your entire installation expense. This federal incentive could come out to $6,994 for most Washingtonians.
Eco-friendly, Renewable Energy
Washington is considered one of the greenest states in the nation, with the highest statewide percentage of energy coming from renewable resources. By installing solar panels, you’ll be reducing your carbon footprint, the pollution, and the emissions you contribute to the environment. You’ll also make your home more energy independent, making you less reliant on your utility company and fossil fuels.
Increased Home Value
Solar panels can increase the value of your home, which is another significant benefit of going solar in Washington. According to research by Zillow: “the typical home value increases by around 4.1% with the addition of a solar energy system”. In Washington, where the average home value is $606,643, this equates to a typical value bump of $24,872. The dollar amounts your home increases by could be even higher in more expensive areas like Seattle, Tacoma, and Olympia.
The Growth of the Solar Industry in Washington State
Washington State is known for its natural beauty and outdoor activities, and now it’s becoming known for its impressive solar industry growth. So, let’s explore the reasons behind this growth and what it means for residents and businesses in the state.
Several factors have contributed to the growth of the solar industry in Washington State. One of the primary drivers is the state’s aggressive incentives and low installation costs. Washington has one of the most generous solar incentive programs in the country, which makes it more affordable for residents and businesses to install solar panels. The federal solar tax credit and net metering policies also make solar energy more financially attractive.
Another factor driving the growth of the solar industry in Washington State is the state’s commitment to renewable energy. Washington has set ambitious goals for reducing its carbon footprint, and solar energy plays a significant role in achieving those goals. Therefore, The state has made significant investments in renewable energy infrastructure, including solar farms, to encourage the adoption of solar energy.
What does the growth of the solar industry mean for residents and businesses in Washington State?
For residents and businesses in Washington State, the growth of the solar industry means access to affordable, renewable energy. By installing solar panels, residents and businesses can reduce their reliance on traditional energy sources, which can help them save money on their electricity bills. Additionally, solar panels increase the value of homes and businesses, making them more attractive to potential buyers.
What’s the future of the solar industry in Washington State?
The future of the solar industry in Washington State looks bright. With the state’s commitment to renewable energy and the continued growth of the solar industry, it’s expected that more residents and businesses will turn to solar energy to meet their energy needs. Moreover, advances in solar technology and the decreasing cost of solar panels will make solar energy even more accessible and affordable.
Furthermore, Washington State has set a goal to become carbon-neutral by 2050, and solar energy will play a critical role in achieving this goal. The state has already made significant investments in renewable energy infrastructure, including solar farms and research into battery storage technology. These investments will help pave the way for a more sustainable future and a thriving solar industry in the state.
The Role of Government Incentives in Promoting Solar Energy
The government plays a significant role in promoting solar energy through incentives that make it more affordable for homeowners and businesses to switch to renewable energy. In Washington State, various government incentives encourage the use of solar energy, including net metering, sales tax exemptions, federal income tax credits, local incentives for energy efficiency, and the Washington State Renewable Energy System Incentive Program (RESIP).
NET METERING
Net metering is a policy that allows customers with solar panels to offset their electricity consumption with the production of renewable energy systems, such as solar panels. In Washington State, net metering credits expire on March 31 every year, and credits from any excess electricity generation are “zeroed out.” The goal of the law is to stimulate the development of renewable energy sources. This policy was enacted through a series of legislation that requires utilities to offer this option.
SALES TAX EXEMPTION
Washington State offers sales tax exemptions for qualifying solar equipment, which makes solar installations more affordable. Equipment for solar energy systems smaller than 100 kilowatts is exempt from state and local sales and use taxes from July 2019 through December 2029. There is also a 50 percent tax exemption available for larger solar energy systems that are between 101 and 500 kilowatts. Different rules apply for systems 100 KW to 500 KW.
FEDERAL INCOME TAX CREDIT
At the federal level, consumers can receive a 30 percent federal tax credit for solar installations, including energy storage devices that have a capacity rating of 3 kilowatt-hours or greater. The Investment Tax Credit, or ITC, offers a tax credit for solar systems on residential and commercial properties. For commercial properties, credit can be applied to both customer-sited commercial solar systems and large-scale utility solar farms. The credit drops to 26 percent in 2033 and 22 percent in 2034, then disappears in 2035 unless Congress extends it.
LOCAL INCENTIVES FOR ENERGY EFFICIENCY
Many utilities in Washington State offer incentives and rebates for energy efficiency upgrades that help their customers reduce their use of electricity. Customers should check their utility’s website to find out what they have to offer.
WASHINGTON STATE RENEWABLE ENERGY SYSTEM INCENTIVE PROGRAM (RESIP):
The Renewable Energy System Incentive Program (RESIP) is a program that offers incentives to citizens and businesses of Washington who switch to renewable energy. Although the program is fully subscribed and no longer taking in new applicants, the Washington State Legislature has not authorized additional funding at this time. In 2017, ES Senate Bill 5939 directed the WSU Energy Program to launch and administer a new program for citizens and businesses of Washington known as the Renewable Energy System Incentive Program.
The Future of Solar Energy in Washington State
Washington State’s commitment to renewable energy is expected to keep the momentum going for solar power well into the future. According to experts, the state’s solar energy industry is poised for continued growth in 2023 and beyond.
One of the main factors driving the expansion of solar energy is the declining cost of solar panels and associated equipment. As prices for solar technology continue to fall, more households and businesses are considering solar as a viable and cost-effective energy source. In addition, advances in battery storage technology are making it possible for solar energy to be stored and used even when the sun isn’t shining.
Another important factor driving the growth of solar energy in Washington State is the state’s renewable energy goals. Washington has set a target of being carbon neutral by 2050, and solar energy is expected to play a significant role in achieving that goal. With the state’s net metering law and other incentives in place, more and more residents and businesses are turning to solar as a way to reduce their carbon footprint and meet their energy needs.
Moreover, Washington State is home to some of the country’s most innovative and forward-thinking companies and research institutions. The state is well-positioned to continue to lead the way in developing new technologies and approaches to solar energy. The state’s abundant natural resources, including ample sunlight and a strong wind resource, make it an ideal location for both large-scale and small-scale solar projects.
Looking ahead, it is likely that the solar industry in Washington State will continue to be a key driver of job growth and economic development. As more and more households and businesses install solar panels, there will be increased demand for solar installation and maintenance services. This growth in the solar industry is expected to create new job opportunities for skilled workers, including electricians, engineers, and technicians.
Overall, the future of solar energy in Washington State looks bright. With a commitment to renewable energy, innovative companies and institutions, and a supportive policy environment, solar energy is expected to play an increasingly important role in the state’s energy mix. As the industry continues to grow, there will be more opportunities for individuals and businesses to benefit from this clean and sustainable energy source.
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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.