The authorities in Washington, DC, offer many incentives and programs. The government plans to get 5% renewable energy through solar energy by 2032. They are taking the initiative to motivate homeowners to install solar panels. The government of Washington, DC, has reduced taxes on selling and purchasing solar, reduced property taxes on houses with solar panels, and introduced net metering.
Exemption From the Sales Tax
Being a Washington resident, you can get an exemption from taxes or other incentives due to your solar system. The federal government takes off all the sales taxes from the sale of 1000 KW solar panels. You can get the tax amount in your credit after using it at the Washington State Department of Revenue. For this, you must provide evidence that you have purchased the solar system and that it is operating.
Moreover, If your property value increases due to solar installation then at the time of selling your house, you are exempted from the tax applied on the increased value of your home.
Investment Tax Credit from The Federal Tax Department
The investment tax credit (ITC) makes the residents of Washington eligible to apply for a 30% reduction in the tax on solar system purchases. However, a point to remember here is that you can only use this reduction in tax if you are purchasing the solar installer at the total cash payment or on the loan.
Solar Advantage Plus Programme
This is the most beneficial for the low-income residents of Washington, DC. This program offers a loan 10,000$, which is enough to purchase 3kw-4kw solar installers. This is available for all families with low income. However, this program has minimal slots.
So, first, come, first get is the policy for this program.
Advantages Through SRECs
The Washington DC authorities have set a goal to achieve 100% renewable energy by 2032. Solar renewable energy certificates (SRECs) are the appreciation incentive Washington DC authority issues to the solar panel owner on producing a megawatt per hour (MWH). If you make 1000 kW/hour of electricity, you will get one SREC and sell this in the SREC market. The average sold prices for SRECs in 2021 were 365$-435$, more than any other state in the USA.
Reduction in Bills Through Net Metering
Benefits through net metering are only applicable if your solar meter is connected to the grid. Sending extra energy to the grid makes you eligible to use electricity at the retail prices. For example, if your solar produces 2kw excess energy and sends it to the grid, you can use it. The retail price is 0.13kw/hour in Washington DC.
Solar For All Programme
The initiative of this program is to provide solar facilities to 100000 families. The criteria for this program also depend upon income. One can apply for this program if the income is below 80% of the area median income. The applicable families can apply for a single independent solar installation for their house or get benefits from the community solar panels.
To qualify for solar for all programs
- the income of one person’s family should be below $85200.
- For two people’s families, it should be $97350.
- For a three-person family, it should be $109500.
- If a household consists of 4 family members, their collective income should be $121700. Similarly, for 6,7, and 8 family members, the threshold income level should be $146000, $158200, and $170350, respectively.
- If you have a large family with 9 or 10 members, your income should be $182,$500, or $ 194,$700.
Community Solars
Community solar is very attractive for families who can not afford solar installation on their houses. This includes the rental community and the homeowners whose roofs are unsuitable for installation. The grid officials distribute the community solar energy equally among all the participants, and the community solar beneficiaries get a monthly reduction in their bills.