Washington Commercial Solar Incentives

With today’s Washington commercial solar incentives, a business can cover up to 80% of the upfront costs associated with a brand new solar panel system. By combining free, renewable power with the new Washington state solar production incentive and healthy tax credits business are choosing solar energy to realize short and long-term benefits for all sizes of businesses.

 

 

MACRS Accelerated Depreciation

Depreciation is the loss of value that occurs over time with the item your business purchased for a specific use. As a business owner, you are eligible to deduct this “loss in value” from your taxable income when used for your business. 85% of total solar installation costs are eligible for depreciation. This can add a tremendous amount of financial value to your system. Our example tables below use a project cost of $100,000.

 
MACRS Accelerated Depreciation 5 Year Table

MACRS Accelerated Depreciation 5 Year Table

 

50% Bonus Depreciation is available

In the first year claiming the 50% Bonus Depreciation, the basis is reduced by half or 50% from $85,000 to $42,500 before applying the normal MACRS depreciation rate. In Year One, you will gain an addition $8,500 in depreciation ($42,500 x 20% = $8,500). After year one, you will continue to apply MACRS rates to the remaining half of the basis ($42,500 x 32% =$136,000 and so on…)

 
MACRS 50% Bonus Depreciation 5 Year Table

MACRS 50% Bonus Depreciation 5 Year Table

 
 

Rural Energy for America Program (REAP)

The United States Department of Agriculture (USDA) provides grant funding to agriculture producers and rural small businesses for solar electric systems. The popular Rural Energy for America Program solar grant, or better known as USDA REAP Grant cover 25% of the total cost of going solar with grants from the United States Department of Agriculture.

Agricultural producers and rural small businesses are eligible to receive up to $20,000 in grant money through their Rural Energy for America Power Program (REAP).

Who May Apply?

  • Agricultural producers with at least 50% of gross income coming from agricultural operations

  • Businesses in eligible rural areas

  • Agriculture producers may be in rural or non-rural areas

Keep in mind, that “small” is defined by the SBA depending on your NAICS code, and can appear quite “large.”

At Sunbridge, we in-house writing the grant to ensure you have the best possible opportunity to be awarded. We work diligently to secure business grant funding for many projects in a competitive system.

 

Net Energy Metering (NEM)

Net Energy Metering is how your utility compensates homeowners with solar panels for providing clean, renewable energy to your neighbors. Your utility must keep a “running tab” on how much solar energy you generate and then remove that charge from your bills. Any extra electrical credits that you save up must be carried forward to the next month’s bill for a full year.

 
 

Each credit is worth equal the market rate which is the price you pay for electricity.This means that you can bank up energy credits for solar power that you create in the summer, then use it in the winter when the sun isn’t shining so much.

Example of Net Energy Metering

You generate 10,000 kilowatt-hours of solar power. You consume 6,050 kilowatt-hours of utility energy. Therefore, you net 3,500 energy credits.