Solar Power Incentives
The following information focuses on solar incentives for Washington State residents. For incentives available in other states, please visit the Database of State Incentives for Renewables & Efficiency, DSIRE.
Federal Tax Credit of 30%
You earn 30% of the total project cost back as a Federal Tax Credit when you have for solar electric (PV) installed from 2022 through 2032. Individuals use IRS tax form F5695 to get the tax credit. This incentive requires that you owe enough in federal income tax that you can take a tax credit.
For systems installed in 2033 the Solar income tax credit is 26%. It falls to 22% in 2034 and ends after that.
Businesses can also take advantage of Accelerated Depreciation (MACRS) over 5 years and are allowed to depreciate 85% of the cost of the solar system.
No Sales Tax for Washington State Residents
All equipment, materials and labor for installation of solar energy systems from 1 kilowatts AC and no more than 100 kilowatts AC in size are exempt from Washington state and local sales and use tax for systems installed through December 31, 2029!
Doing DIY solar? Your equipment purchases qualify too. Contact FMS to find out more, and for a quote on your custom DIY solar kit.
Solar Sales Tax Exemption for Other States
There are other states, like Colorado, that also have sales tax exemptions for solar. Contact your local sales tax authority to find out if your state has this cost saving incentive for solar.
USDA Rural Energy for America Program (REAP) Grants for Businesses
If you operate a small business in a designated rural development community, you may qualify for a REAP grant or loan to go solar. If you are an agricultural producer you do not need to be in a rural development area.
Find out more by clicking here.
Net metering is a bill structure for people who produce some of their own power. Find out more on our Net Metering page.