Renewable Energy Incentives
The following information focuses on renewable energy 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 26%
You earn 26% of the total project cost back as a Federal Tax Credit when you have for solar electric (PV) installed. 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 2021 and 2022, it is 26%. It falls to 22% the following year (2023), and from 2024 on, the tax credit is 10% for commercial systems and zero for residential systems.
Businesses can take advantage of an Accelerated Depreciation (MACRS) over 5 years and are allowed to depreciate 85% of the cost of the solar system.
Net metering is a bill structure for people who produce some of their own power. Find out more on our Net Metering page.