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- 1. What solar incentives are available in West Virginia?
- 2. Federal solar incentives
- 3. Local solar incentives
- 4. Can you claim multiple tax incentives in West Virginia?
- 5. Does West Virginia offer tax exemptions?
- 7. What is the best way to pay for solar?
- 8. Going solar doesn’t have to break the bank
What solar incentives are available in West Virginia?
As a homeowner in West Virginia, you have access to several different tax incentives that make solar panels more affordable. Solar incentives are available at both the federal and state levels to help you save thousands on your investment in solar energy.
Solar Calculator is here to help you take the next step in your transition to renewable energy. Below, we’ll discuss some of the different ways you can make solar more affordable.
Federal solar incentives
As part of the Inflation Reduction Act of 2022, congress passed several clean energy provisions to reduce energy costs. Among those provisions was an extension and upgrade of the Federal Investment Tax Credit (ITC).
Federal Investment Tax Credit
The Federal ITC allows you to claim 30% of your total equipment and installation costs on your federal taxes. There is no minimum or maximum amount you can claim and it includes equipment, installation, permitting, and even battery storage.
The ITC will remain at 30% until December 31, 2032. After that it will be reduced to 26% until December 31, 2033, then to 22% the following year. The ITC is currently set to disappear in 2035 unless it is renewed.
Who is eligible for the Federal ITC?
Most homeowners will qualify for the Federal ITC, but not all. You must meet the following criteria to claim your 30% tax credit:
The Federal ITC will also cover the following expenses:
Homeowners save around $10,000 on average with the Federal ITC. But that number can be higher or lower depending on your total expenses.
How to claim the Federal ITC
Claiming your Federal ITC couldn’t be easier. All you have to do is fill out IRS form 5695 and submit it with your tax return. You can consult with a tax professional for more assistance.
Local solar incentives
Who’s eligible : Local Government, State Government, Federal Government
How to apply : In March 2021, West Virginia passed H.B. 2667, requiring that all state buildings achieve an energy reduction of 25% below 2018 levels by 2030. This legislation also established a energy savings contracting program. Such program shall include the development and provision of model, template, or standardized contracts, guidelines, procedures, manuals, and other related documents regarding the use of energy-savings contracts In March 2012, West Virginia enacted the Green Buildings Act, which applies to all new construction of public buildings, buildings receiving state grant funds, and buildings receiving state appropriations. For those buildings that have not entered the schematic design phase prior to July 1, 2012, buildings must be designed and construction to comply with the ICC International Energy Conservation Code, and the ASHRAE Standard 90.1-2007. If a building is also receiving federal funds, the ICC and ASHRAE standards only apply if the are consistent with federal standards.
Who’s eligible : Commercial, Industrial, Residential, Agricultural
How to apply : In 2006, West Virginia stakeholders came together to consider net metering, interconnection as required by the Federal Energy Policy Act (2005) and agreed upon a "Statement of Consensus Among Parties," which was presented to and accepted by the West Virginia Public Service Commission (PSC) in December 2006. The consensus agreement did include interconnection guidelines for the state, however, the PSC did not initiate a formal rule-making or incorporate the guidelines into agency rules. Rather, the interconnection guidelines were incorporated into utility net metering tariffs (which are proposed by the utilities). In 2010, the PSC opened a docket to reconsider net metering and interconnection per H.B. 103 (2009). The Order, General Order No. 258, adopted new interconnection standards (Rules Governing Electric Utility Net Metering Arrangements and Interconnections), based almost entirely on the existing interconnection guidelines of the consensus agreement. However, several important improvements were incorporated, including tiered insurance requirements and removing the requirement for external disconnect switches in the case of smaller, inverter-based systems. West Virginia adopted revised interconnection standards in 2019, increasing the system size for Level 1 review from 10 kW to 25 kW. West Virginia's interconnection standards include two levels of review. The qualifications and application fees for each level are as follows: Level 1 applies to generators with a rated capacity of 25 kW or less. The maximum application fee for Level 1 applicants is $30. Level 2 applies to generators with a capacity of 2 MVA or less that do not meet the criteria for inclusion in Level 1. The maximum application fee is $50 plus $1 per kW of capacity. The rules use IEEE 1547 as the technical standard of evaluation. The rules specify the technical screens which may be applied to applications at each level of review as well as time limits for different stages of the evaluation process. Application forms and interconnection agreements are standardized. Customer-generators must maintain $100,000 general liability for systems with nameplate capacity of 50 kW or less, $500,000 for systems with nameplate capacity of greater than 50 kW to 500 kW, and $1 million for systems with nameplate capacity greater than 500 kW. Utilities may not require customers to install an external disconnect switch for inverter-based, certified systems 25 kW or less.
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Agricultural
How to apply : Note: HB 2201 of 2015 requires the Public Utility Commission to investigate and adopt new net metering and interconnection rules. The bill prohibits cross-subsidization of ratepayers potentially caused by net metering tariffs and limits IOUs from allowing more than 3% of aggregate load to be generated by solar power. The Commission opened a new proceeding (GO 258.3) in September 2018 to investigate the state's net metering rules. The summary below describes the current net metering rules. Eligibility and Availability Net metering in West Virginia is available to all retail electricity customers. System capacity limits vary depending on the customer type, according to the following table. Customer Type All Utilities Residential 50 kW Commercial 1 MW Industrial 2 MW Systems that generate electricity using "alternative" or "renewable energy" resources are eligible for net metering, including photovoltaics (PV), wind, geothermal, biomass, landfill gas, run of the river hydropower, biofuels, fuel cells, and combined heat and power (technically called "recycled energy" in the rules). Net metering may be accomplished using a single, bi-directional meter or two meters. In the event that two meters are used, the net number of kWh for billing purposes will be determined by subtracting the amount of electricity flowing from the customer to the utility from the amount of electricity flowing from the utility to the customer. Net-metering tariffs must be identical in rate structure, retail-rate components, and monthly charges, to the tariff for which the customer would qualify if that customer were not a customer-generator. Customers on a time-of-use (TOU) tariff are permitted to net meter. Each customer with a net-metered system up to 50 kW must carry a minimum of $100,000 in liability insurance. Customers with systems greater than 50 kW and up to 500 kW are required to carry a minimum of $500,000, and customers with systems greater than 500 kW must carry a minimum of $1 million in liability insurance. Net Excess Generation Net excess generation (NEG) may be carried over to a customer-generator's next bill as a kilowatt-hour (kWh) credit at retail rate and may be rolled over, indefinitely. The credits may only be applied to the energy portion of the bill (not fixed costs or demand charges, for example). Alternative Energy Credits Based upon the Alternative and Renewable Energy Portfolio Standard, alternative energy credits can be generated by renewable OR non-renewable sources that are not net-metered. General Order 184.32 states that in order to claim alternative energy credits, customer generators and behind the meter generators (BTMs) must certify their resource with the Public Utiliity Commission and then file an Alternative or Renewable Meter Generation. Customer generators and BTMs shall own alternative energy credits unless they have contracted by a third party to provide generation, in which case the third party owns the credits. Customer generators and BTMs with systems above 10 kW must have meters that meet American National Standards Institute (ANSI) C-12 meter standards. Systems below 10 kW are permitted to make generation measurements based upon system inverters or may also have meters that meet ANSI C-12 standards. Meter Aggregation Customers may aggregate meters (either physically or virtually) and apply net metering credits earned on one meter to additional meters, as long as they are located within two miles of the point of generation. The associated costs of meter aggregation are the responsibility of the customer. History The West Virginia Public Service Commission (PSC) approved consensus filings regarding net metering and interconnection guidelines in December 2006. The approved consensus provisions include proposed rules that apply to all electric utilities in the state. Utility tariffs incorporating the consensus net-metering provisions took effect in March 2007. In June 2010, the PSC adopted new net metering and interconnection procedures. In May 2011, the PSC clarified the definition of "run-of -river hydropower" to match the definition in the Alternative and Renewable Energy Portfolio Standard.
Who’s eligible : Residential
How to apply : In March 2012, West Virginia enacted legislation (H.B. 2740) that restricts housing associations from prohibiting solar energy systems on homes. Any governing document executed or recorded after June 8, 2012, that effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable. However, housing association members may vote to establish or remove a restriction that prohibits or restricts the installation or use of a solar energy system. A solar energy system is defined as "a system affixed to a building or buildings that uses solar devices, which are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy." This prohibition does not apply to provisions that impose "reasonable restrictions" on solar energy systems, including restrictions for historical preservation, architectural significance, religious or cultural importance to a given community. In addition, the law specifies that state and local authorities may regulate solar energy systems by establishing land use, health and safety standards, and that housing associations may restrict or limit the installation of solar energy systems installed in common areas and common structures.
Who’s eligible : Commercial, Residential
How to apply : Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP websites. The West Virginia State Fire Commission is responsible for adopting and promulgating statewide construction codes. These codes may be voluntarily adopted at the local level. Local jurisdictions must adopt the statewide requirements in order to enforce them at the local level. For jurisdictions that adopt the statewide codes, compliance is determined by plan review and inspection by local building officials. If local jurisdictions do not adopt the statewide codes, contractors, builders, and architects are responsible for complying with the provisions of the codes. The Fire Commission most recently updated the voluntary building energy codes in 2019. The residential code took effect on 9/30/22; the commercial code took effect on 4/30/19.
Can you claim multiple tax incentives in West Virginia?
Yes. You are allowed to claim multiple solar incentives for the same installation. However, you can only claim each incentive once. For more guidance on how to claim your solar tax incentives, talk to your installer or consult with a licensed tax professional before submitting your tax forms.
Does West Virginia offer tax exemptions?
Energy Standards for Public Buildings
Category : Regulatory Policy
Website :
Applicable Sectors : Local Government, State Government, Federal Government
Incentive Amount :
Implementing Sector : State
Interconnection
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Residential, Agricultural
Incentive Amount :
Implementing Sector : State
Net Metering
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Agricultural
Incentive Amount :
Implementing Sector : State
Solar/Wind Access Policy
Category : Regulatory Policy
Website :
Applicable Sectors : Residential
Incentive Amount :
Implementing Sector : State
Rebate Program
Category : Financial Incentive
Website : https://takechargewv.com/rebates
Applicable Sectors : Residential
Incentive Amount : Room Air Purifier: $50 Dehumidifier: $25 DIY Insulation: $5 per roll, up to $40 Freezer: $25 Refrigerator: $50 Smart Thermostat: $50 Ventilation Fans: $25 Water Dispenser: $25
Implementing Sector : Utility
Building Energy Code
Category : Regulatory Policy
Website : http://apps.sos.wv.gov/adlaw/csr/ruleview.aspx?document=8584
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Corporate Tax Exemption
Category : Financial Incentive
Website :
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount : Reduction of Business and Occupations (B&O) tax from 40% to 12% of generating capacity for wind turbines. 8% of solar photovoltaic generating capacity.
Implementing Sector : State
Property Tax Incentive
Category : Financial Incentive
Website :
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount : Property tax basis reduced to approximately 25% of assessed value
Implementing Sector : State
What is the best way to pay for solar?
Cash payments
Paying cash upfront is easily the simplest and most cost-effective route — if you can afford it. It lets you maximize your total savings by avoiding interest rates and other fees. You also don’t have to worry about making monthly payments. But the downside is you have to spend a lot of cash at once which isn’t an option for everyone.
Pros
Cons
Financing
Financing solar panels is probably the most common payment method. You get to own the system — as opposed to leasing — but you don’t have to spend all your cash at once. And although you do have to pay interest, you can secure a fairly low interest rate as long you have good credit.
Pros
Cons
Solar leases and PPA agreements
If purchasing solar equipment isn’t an option for you, a lease or a PPA may be worth exploring. This is where you are essentially “renting” the equipment for a fixed rate each month. And although you don’t have ownership of your system, there are other benefits such as maintenance and servicing agreements.
Pros
Cons
Going solar doesn’t have to break the bank
Going solar is becoming more affordable than ever. And thanks to a variety of solar incentives in West Virginia, you can save thousands more on your investment.
Want to get an idea for what it will cost you to go solar? You can use our solar cost calculator to generate a customized estimate instantly. We take into consideration a wide range of criteria including location, electric bill, roof size, and other factors. Try it out today and start planning for your future.
