Tax benefits from going solar could save you thousands

J.R. Heimbigner
photo of man holding moneyPhoto by Alexander Mils (Unsplash)

Want to save or earn thousands of dollars more per year? Of course you do. Well, it might be worth looking into the government benefits you can receive by going solar in Washington state. Some of the advantages of solar energy include lowering (or eliminating) your electric bill, raising your home value, reducing your carbon footprint, and even earning money back on your investment. (source)

Another one of the up-front benefits of solar power is that Washington has a sales tax exemption for qualifying solar equipment. This exemption started in July of 2019 and is currently running through December of 2029. Washington has a 6.5% statewide sales tax rate, but also has 105 local tax jurisdictions (including cities, towns, counties, and special districts). (source)

Federal Tax Credit Available For Solar Power

The federal government has offered a tax credit to help offset the cost of installing a solar in Washington state. According to the United States Department of Energy Efficiency and Renewable Energy, In December 2020, Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023.

Best of all, there is no maximum amount that can be claimed.

How Much Does Solar Power Cost?

According to Consumer Affairs, the average cost to install solar panels in the United States is about $12,000. While that is definitely an investment, the long-term benefits definitely add up. The 26% tax credit alone could give you a benefit of $3,120 with your federal taxes out of the gate. Remember, solar energy lowers (or even eliminates) your electric bill too. With the average household paying over $1,500 on energy in Washington, you will save even more by going solar. You can even make money on your initial investment as you pay off the cost of installation.

Would you consider going solar? Why or why not?

Feel free to share your thoughts in the comments.

Disclaimer: Please be aware that this article is only for educational and informational purposes.

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