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State Incentive Programs: Washington
Renewable Energy Production Incentives
In May 2005, Washington enacted Senate Bill 5101, establishing production incentives for customer-generate solar electricity. The incentive rate paid includes multipliers for systems with components manufactured in Washington State, and thus payments can range from $.15 to $.54 per kilowatt hour produced, with a maximum annual payment of $2000 (increased to $5000 in 2009) per producer. Ownership of the renewable-energy credits (RECs) associated with generation remains with the customer-generator and does not transfer to the state or utility.
In 2009, the passage of Washington SB 6170 extended the production incentive program to Community Solar Projects. Community solar projects are defined as solar energy systems owned by local individuals, households, nonprofit organizations, or non-utility businesses that are placed on local government property; or utility-owned systems funded voluntarily by ratepayers in exchange for a payment or utility credit for electricity produced.
The incentive payments for community solar participants, starting with a higher base rate and using the same multipliers as mentioned above for Washington-made equipment components, range from $.30 to $1.08 per kilowatt hour. Each participant in the community solar project can apply to receive this incentive and may receive up to $5,000 per year.
At the time of publication, rulemaking for this incentive was underway. Please check with the WA Department of Revenue for the current status of the rule and procedures in place.
More info can be found here.
Sales and Use Tax Exemption
Equipment used to generate solar electricity and the labor and services required to install these systems are exempt from sales tax in Washington State. This exemption ends after June 30, 2011. From July 1, 2011 to June 30, 2013, the exemption will be reduced from 100% of the sales and use tax to 75% of the sales and use tax. Purchasers of systems larger than 10 kW must claim the exemption in the form of a remittance.
