West Virginia Solar Power Rebates, Tax Credits, and Incentives
Beauty of a sunset in the Monongahela National Forest
2012 Update
West Virginia, home to the Appalachian Mountains, and some of the most beautiful hills in the country. You say you want to get out and enjoy cultural activities like traditional music and crafts. Perhaps you want to hobnob with the bigwigs over golf at the Greenbrier? Well, clean power will let you have that chance for generations to come. How about solar energy? Well, here’s what the legislature here has done so far…
West Virginia’s (lack of a) Renewables Portfolio Standard
A Renewables Portfolio Standard (“RPS”) is a law or other piece of regulation that mandates that a certain percentage of at state’s energy production comes from renewable resources by specified target dates. A strong RPS is important because it forces utility companies to promote conversion to renewable energy. That generally means free money for you in the form of solar power rebates and performance payments when you switch to solar.
West Virginia has not yet passed an RPS and sadly, the pattern we’ve seen elsewhere is repeated here: no RPS means no utility backed incentives for solar power here …
Solar Performance Payments and Rebates in West Virginia
That’s right, West Virginia got left in the Stone Age… I mean the Coal Age. There aren’t any performance payments or utility rebates for solar power here. It’s time to start calling your legislators to tell them to get on the ball when it comes to saving the atmosphere by promoting clean energy. We can guarantee that if a strong RPS were in place the utilities would be scrambling to offer you incentives to help them meet their RPS mandated goals. How do we know? Only because it works everywhere else!
West Virginia Solar Tax Credits
While they may not be pushing the utility’s to offer you cash incentives, lawmakers in Charleston have stepped up to the plate and passed a personal tax credit to help bring down the costs of switching to clean power. When you install your new solar power system, you’re entitled to a tax credit of 30% of costs, up to a maximum of $2,000.
West Virginia Solar Tax Exemptions
Unfortunately the tax credit is not buttressed by tax exemptions. Even without utility incentives, the legislature could do a great deal to incentivize solar power simply by adding these simple, straightforward laws. A sales tax exemption would save you 6% up front ($1,500 on the average 5kw residential system). A property tax exemption would do even more. When you add a solar power system your home goes up in value by about twenty times your annual electricity savings. A property tax exemption would save you from paying taxes on that increase in value, earning you extra cash year, after year, after year.
Legislators are missing an easy one here; we’ve seen tax exemptions help support solar power conversion elsewhere, even without large rebates or performance payments in place.
Utility Prices in West Virginia
West Virginia pays an average of 9.91 cents per kilowatt-hour (“kwh”) of electricity. That’s more than a a cent-and-a-half less than the national average of 11.43 cents/kwh. We know you like paying less now, but the long term costs of cheap electricity are through the roof. All that cheap electricity is produced by burning fossil fuels. Tons and tons of earth-killing fossil fuels. When the astronomical environmental costs start to mount, monthly electricity bills are inevitably going to rise as well. When that happens you’re going to feel pretty darn smart for making the early switch to producing your own clean, efficient solar power. Just remember to thank us …
West Virginia Net Metering and Interconnection
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and to make sure you get credit for any surplus.
West Virginia requires all utilities to offer net metering. All monthly surplus energy production is applied to your next bill. Unused credits can be rolled ever perpetually, and unlike many other states, do not ever have to be surrendered back to the utility. That’s a really solid net metering program. The only thing we want to see changed is the elimination of liability insurance requirements for small residential systems.
Interconnection is solid here as well. All systems up to 2 MW are eligible to hook up to the grid. The connection process is split into two tiers depending on system size. Your residential system of less than 25kw qualifies for a reduced application fee of only $30 (maximum) and is exempt from requirements for an external disconnect switch.
5kW Example Return on Investment in West Virginia
Installing a typical 5kW solar system in West Virginia should start at about $25,000. Don’t worry – that’s going to come down a lot, just in the first year.
- Let’s start with that state tax credit. You’re going to get the max, so subtract $2,000 for a new price of $23,000.
- The federal solar tax credit is calculated based on actual out of pocket costs, so the state tax credit doesn’t apply, and you get 30% of the original $25,000 price tag. Subtract $7,500 for a new price of $15,500.
- After the federal solar tax credit we subtract your first year’s energy savings, which we estimate to be about $541. That brings your cost after the first year to $14,959.
- With a conservative estimate for the future rise of electricity prices, you can expect your new solar power system to pay for itself in about 18 years. Even with that somewhat slower payback time frame, you can still expect to get several years of profits out of your solar power system. We estimate those profits to be more than 10 grand through 2036.
- In addition to those direct wallet-fattening savings, you also increased your home value by $10,822!
- Don’t forget all that fossil fuel you’re not burning. Your solar power system is the carbon-saving equivalent of planting 97 trees a year, every year your solar power system is humming.
These numbers are estimates. Your home is unique and how much power you generate and how much money you save depends on that uniqueness. The best way to find out how much cash switching to solar can save you is to get one of our free quotes, and an expert installer in your area can draw up a home-specific estimate for you. Your quote is 100% free (yes, that’s right, 100% free) and you can get as many of them as that smart shopper in you desires!
West Virginia Solar Consensus
Hey mountaineers! Your legislature has failed! We hear so much about coal mine safety every year. Here’s a thought: retrain those miners to work in a safer industry – the solar power industry. Seriously! Coal mining may be part of the heritage of the state, but clean energy is the future of the planet. If you want to keep the state “Wild and Wonderful,” it’s time to start renewing the West Virginia political scene: vote yes on solar!
Back in 2005, before WV even had net meetering, I was told that WV didn’t offer any incentives for renewable energy to homeowners because “electricity is so cheap here” Figure in the health costs of the residents, and the environmental damage, and just how cheap is it?
Thanks for the reminder that I need to call the govenor and state senators about this again.
WOW! Second thoughts on retireing in Charleston. I was raised in Charleston and attended WVU before moving to New York City. After 20+ yrs I know that I don’t want to retire here, so I bought a house in Charlestons South Hills with the expectation of moving back home. I am having second thoughts about this now that I now know that WV is sooo far behind the rest of the country with solar energy. I will go solar on my retirement home, just hope that your legislature stops pandering to BIG COAL and starts to catch up with the rest of the WORLD. Time to get into the 21st century. Alternative fuel guys.
wow hey this is taron….and i love to hobnob with the bigwigs in west virginia I go there every weekend with my maid Karla. She wears skimpy maid outfits for me
I have watched WV slide into the oblivion of being owned by everyone but the people. Let’s face it the states use was over with the Civil War. I have lived here all my life and was impressed we had cable internet as soon as we did, but AEP and coal companies are allowed to run amuck here. Kentucky isn’t much better. They the AK Steel company do whatever they want with H2S releases and other horrible gases that will literally peel the paint off your car. This area is doomed because the people here vote by party not by the best man for the job. Ceredo, WV has had the same mayor for 35+ years which mocks what our country’s system of government was meant to do. so it is no surprise to me to see chemical valley behind the world with solar or any other power. Hell the state wouldn’t protect the miners and had most of them shot for not working way back before the unions. So yeah this place sucks.
If there is any like minded people that are even remotely interested in constructing or building solar, wind power, or overunity generators in or around Huntington, WV. Leave me an E-mail (legg.jason@yahoo.com
Lets start something here, anything!!!
I am very intrested in retrofitting my home to solar power. I am very intrested in clean power sources. I also would love to get this country off foreign oil. why make them rich,when they hate and want to kill us. I need help with financing.
I’ve lived in WV since 1981 and would love to install a solar and water electric power generation system on my farm. But like most, financing seems to be an issue even with the available Federal Tax Credit. It would be great if the State of WV would help on offsetting the cost with something that would benefit everyone. If anyone has any input, please feel free to email me.
I just learned yesterday that West Virginia will be enacting a 20+% additional tax credit for solar installations. Should happen soon.
Chris, with a Farm you probably qualify for a USDA Grant, that combined with the Federal Tax Credit makes Solar or Wind very much within your reach…. even in West Virginia. We are quoting a number of these in the state right now.
In June, the West Virginia legislature passed a solar energy tax credit. See here: http://www.dsireusa.org/incentives/allsummaries.cfm?State=WV&&re=1&ee=1
WV now has a $2000 Credit
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ARTICLE 13Z. RESIDENTIAL SOLAR ENERGY TAX CREDIT.
§11-13Z-1. Amount of credit.
Any taxpayer who installs or causes to be installed a solar
energy system on property owned by the taxpayer and used as a residence, or as farm or small industry as defined in section three of this article, after July 1, 2009 shall be allowed a credit against the taxes imposed in article twenty-one of this chapter in an amount equal to thirty percent of the cost to purchase and install the system up to a maximum amount of $2,000.
As stated by Murray, WV now offers 30% tax credit with a Max of $2000 for solar installations. Additionally the Federal tax credit is now 30% off of whatever is insalled, and I believe Allegheny’s rates are up a few cents from this article. Still WV could stand a few more incentives.
Are any of you folks interested in getting involved in supporting legislation for these rebates? On another subject, have you heard of Create WV? Seems you all have great energy and would like to see big change happen in this state. I am organinzing the US Green Building Council for the state, and I am one of the founders of Create WV, and Green Drinks Charleston. CreateWV.com has a great blog and would welcome your energy, and Green Drinks Charleston is one of two groups started to build social capital among people who think like we do. There’s also a Green Drinks Morgantown, and GreenDrinks Upper Ohio Valley is trying to get on its feet. Lastly, I’m launching a training initiative called WVGreenWorks to provide training in the hot areas in green and sustainability. I’m not making a shameless plea for my business–everything I’m talking about here is non-profit…but everything I’m talking about here is very important–geared to pull people together to move forward like we’ve never done before in this state. Holler at me if you want to get involved, or if you have questions. s.halstead@katscandu.com
Hey, Sarah, we’ve got other solar fish to fry, but we’re posting your comment for anyone else locally in WV who would like to get involved with your organizations.
I also live in W.V. and would like to get solar panels for my home, but not enough tax credits and it’s not cost effective without it. I’m originally from La. and have no desire to move back. W.V. is home now but we do need help in state tax breaks for solar and wind power.
I live in WV, and have for all 39years of my life. Now, finding myself approaching the mid years of life, and considering other forms of energy. My home is all electric and the bills keep getting higher all the time. My average bill is approximately $280 a month and recently found out the the electric company has been approved to increase the bill another 8%. We need other forms of electricity to be able to afford the energy. I am currently searching and studying solar, and wind energy, but there definitely needs to be some tax breaks from the state and nation to better accomidate the american people as well as West Virginians, to encourage the use of other natural resources and save everone in the long run.
Hi,
I’m in the biz, and can assure you that your cost numbers for a 3 KW system are way high. The national averate cost per watt of PV is $6 – $8 per watt. So a 3 kw system would be around $21K. Even with our low elec rates and minimal state incentives, the payback period is less than 10 years. More info available if you are interested
Thanks
Bill
Hi Bill…
Rather than purchase a retirement annuity, I’m interested in creating an income stream from selling solar power, but I’ve only been able to find info on net metering. Do you know how/if we might accomplish that in WV or MD?
Hi ~ Your site is very helpful. Not only the articles/info that SolarPowerRocks writes here, but many of the user comments, too. Thank you for a much needed solar info center.
Thanks Linda!
We are in the process of installing ~ 3 Kw grid tied PV system. Your site is wonderful. We have listed resources we have used at https://sites.google.com/site/solarinfowv/ . I’m very excited about the project, I have learned a lot. As you can tell from the spread sheet we are DIY effort with the help of our neighbors Don Alexander and Mary Wildfire who have a cool off grid PV system. With the excitement comes some terror of making mistakes. Several useful things:
1. Bill Howley told me with the new WV Net-metering law you don’t need the disconnect next to the meter. I was mistaken in hoping that the tax credit could count on the year when purchased – but it’s only when completed. 2. I found it easier to lay out our array orientation using solar noon (link on our web site) rather that a cheap compass. 3. I going to use the owner built rack Don our neighbor Don designed (on site). 4. I wish I had spent more money and purchased US made panels / modules.
Thanks for sharing your knowledge and process Robin! Congratulations on your installation!
If WV would just make a sensible Feed in tariff with a proper cap to protect the grid…banks and companies would invest 100′s of millions of dollars in the state like they do in other development solar economies. The GDP of WV is 63 Billion Dollars….300MW of solar would be at least 1.2 Billion…thats a 1.6% jump in the cash/goods flowing through our state…not to mention 1.2GWh of green electricity.
To make it better, AEP signed a Power Purchasing Agreement with Ohio; so the rate hike in WV is to pay for the solar in Ohio; making Jobs and Money
We’re looking to bring a US Solar Manufacturer to the mountain state within the next three years. Kudos to Robin and Sarah for their good works.
The WV Legislature passed a residential solar energy tax credit in 2009 equal to 30% of the purchase and installation cost up to $2k. See 110CSR21D for the details.
I am trying to turn a 1740 log home into total solar the home currently is using 1200.00 to 2000.00 per month in electric. I want to open the home to schools ext. to teach people about the real differnce solar and green energy can make. However its like spitting in the wind to get a company to sponsor the program. However if people cant really see how it could work for them they will never change.
Interested in building my own solar panels and maybe as a group teaching others. Lets get off the grid people. we can do this. Nothing against coal, but we are shipping it to China! WV could care less about us; a 2000.00 credit. Humpfffff, right. Lets do it ourselves….I am in fairmont area. contact me.
Are you doing any seminars in the eastern part of the state any time soon? Or maybe the 1st question is do you do seminars?I want to go solar but don’t know where to start. Thanks Linda
Solar energy seems great, but in many places would not work well in West Virginia. In many valleys the sun doesn’t touch the roof tops untill 10:00-AM or later.
There is also the problem of how expensive the systems are. I feel like if you want people to have the products, we need to make them more affordable. There is no way that a single working parent could afford the expenses.
I’ve thought about solar energy for a long time, but it just seems like another way for someone else to make money off of people.
Saying we need to have the system because it helps the planet is fine, but the huge price involved seems to point in the direction of someone loving to fill their pockets more.
I do think pollution is bad, but the prices posted here are still high. The most important thing to remember is we need something to help people. To make something that they can afford. No one needs another payment to make at the end of the month.
Most of these prices could buy a house in West Virginia, which really makes it seem that much more un-appealing. I’m sure someone will disagree with me, but facts are, many people shy away from this great idea, because of cost.
FYI- WV DOES offer a tax credit for SOLAR energy upgrades. So get your FACTS STRAIGHT!! Before you go slamming WV and it’s Miners!
Well i am from wva now living in ok. i see you slaming coal minners and spouting green.
In wva that is a way of life. that is how a lot of people survive you cant push your own spam and expect people in wva to listen. i think solar is good but all you should tell wva people if you want them to listen is solar facts. like how to hook them up and the different parts needed. tell them about inverters, chargers, batteries, pannels, cables wireing etc. you dont have to be brand
specific. be kind be smart and stop acting like people from a location are dumb. Remember knowledge passed on will do more to accomplish what you want. pushing politics or spam just turns people off. wva people are very smart and can do more than their legislature has set up for them if you pass on the way to help themselves.
I am ONLY interested in the end result POWER what I think of people who mine coal or gas is not important to the end result for the poor trying to get by on what little they have. I have been around DC power my entire life and know enough to make it work. I am looking into solar and wind I have enough property to make both work, I am just going to have to invest in it slowly at first. What do i have to loose. Did you know that a simple car alternator turning at just 1500 RPM with an inverter box can run most power tools. I am going to try and build a system rather than purchase it, if I fail so what I tried.
In 2011 the WV legislature passed SB 465 to support the alternative fuel vehicle and infrastructure tax credit including solar. The bill’s main purpose was to support the downstream gas industry to build the infrastructure to power natural gas powered vehicles but also included other forms including solar. The tax form for 2011 included an extra form which allowed the taxpayer to claim up to $10,000. on residential install of solar panels and charging equipment and up to $312,000. on commercial solar installations. Most all of the credits have since been denied by the state tax dept without any direction on how the credit was meant to be applied even going so far as to change the tax form going forward with a different form omitting many of the solar options from the year before. This denial is currently being challenged based on information provided by the tax dept to solar companies throughout the process. This should be very interesting to see how it turns out in court.