West Virginia Solar Rebates and Incentives

How Much Can You Save on Solar in West Virginia?

Key Details

• As of 2023, West Virginia has an average retail cost of grid electricity of 8.87 cents per kilowatt.
• The average cost for a 6Kw solar panel system in West Virginia is $15,834 at $2.64 per watt before the Federal Tax Credit, which reduces it to $11,084.
• In 2022, the state currently had a total of 24 MW installed solar capacity, with over 671MW projected to be added by 2027.
• Homeowners are estimated to earn their money’s worth on solar panels within 8 to 10 years, depending on certain factors such as roof size and energy usage.

West Virginia Energy Profile

West Virginia has resources that give it the potential for renewable energy generation. According to data from the National Renewable Energy Laboratory (NREL), the Mountain State receives an annual average of 4,146 kilojoules per square meter (KJ/m2) of sunlight, broken into a range of 3.5 to 4.5 hours per day.

As of 2020, the commercial sector in West Virginia consumes a total energy per capita of 57 million British Thermal units. On the other hand, residential consumption stood at 84 million BTU in total energy per capita. The total energy per capita consumed across sectors was about 107.9 million British Thermal units in 2020.

As part of the state’s sustainability effort, West Virginia offers multuple renewable energy rebates. Here is a breakdown of some of these rebates.

West Virginia Solar Tax and Incentives at a Glance

How Cheap or Affordable is Solar Energy in West Virginia?

The average retail cost of grid electricity in West Virginia is 8.87 cents per kilowatt. The average cost of solar panels per watt is $2.64.

In 2023, West Virginia had 24 MW of installed solar capacity, The state is projected to experience a steady increase in solar energy generation over the coming years.

By 2027, 671 MW of solar energy is expected to be added to the state’s solar energy profile. This projection comes logically as the price of solar energy in the state has decreased by over 52% over the last ten years.

Apart from solar energy, West Virginia also has an abundant source of other forms of renewable energy. For example, the mountainous part of the state provides a suitable environment for hydropower generation. Hydroelectric power from this source currently generates more than 2.5% of the state’s total electricity net generation.

In 2020, wind power generation also reached an all-time high of 1.9 million hours in the state. And in 2022, a 115 MW wind farm began operation, increasing the state’s wind capacity to 860 MW.

How much Does a 6Kw Solar Panel Cost in West Virginia?

As of January 2023, a 6Kw solar panel costs about $15,834 at $2.64 per watt in West Virginia. With the 30% Federal Tax credit, homeowners can save $0.75 per watt on solar panel installations.

This brings a 6Kw solar panel cost to $11,084 after the Federal Tax Credit. However, apart from the Federal Tax credit, there is no other West Virginia tax credit for solar panels.

As of 2021, West Virginia gets 5% of its total Energy Supply from Renewable Sources. Hydroelectricity is the Major source of renewable energy in the state. Other major sources of renewable energy include wind, sun, and biomass.

However, about 90% of West Virginia's energy is generated from coal. Most of the time, power consumers buy from renewable sources to offset the bills. No laws explicitly stop users from purchasing 100% green energy.

Factors that Affect Solar Panel Cost in West Virginia

The cost of a panel differs based on a mix of factors. Here is a breakdown of these factors:

• Solar Panel Type: There are different types of solar panel dependent on the type of cells from which they are made. There is the Monocrystalline solar panel, the polycrystalline panel, and the thin-film solar panel. The ideal option for homes is monocrystalline. It is, however, slightly more expensive than polycrystalline. By implication, a 6kw monocrystalline solar panel may cost more than a polycrystalline panel.

• Panel Number and Weight: The more solar panels a home needs, the more it costs the home to fix them.
• Solar Panel Size: The bigger the size of a panel, the higher the purchase cost and installation. Factors such as roof size, energy need, and panel efficiency may affect the size of a panel.
• Brand And Quality: This factor is more dynamic and market-driven than fixed. Depending on the company's brand image, a solar panel may cost more or less than the estimated average.
• Cost of Installation: The installation cost of a solar panel may be affected by an interplay of factors. Some of the most important ones include roof design, weather conditions, roof angle, and the fee charged by the installer.

How Long Does it Take for Solar Panels to Pay for themselves in West Virginia?

On average, it takes 8 to 10 years for homeowners to earn their money’s worth on West Virginia solar panels,. This factor may, however, vary with households based on the following factors:

• Cost: The higher the cost of solar panel installation, the longer it takes the owner to earn back the value.
• Electricity Utility Rate: The more a household pays for electricity after installation, the shorter it takes for the panel to pay for itself. Higher bills translate to higher bill offset and lesser costs for households.
• Energy Usage: The higher the energy a house consumes, the shorter it is to earn its money worth on a panel. This may also be dependent on power stability. Frequent power outages mean lesser power consumption from the general grid. As a result, households use their solar systems more and earn their money’s worth faster.
• Efficiency of the Solar Energy System: The more efficient a system is, the easier it is to pay for itself. Less efficient solar energy systems may take longer than the estimated average.

Federal Solar Tax Credit in West Virginia

The Federal Solar Tax credit is a renewable energy tax credit available to all taxpayers in the United States. With this arrangement, taxpayers get a percentage tax credit that offsets the income liability of the solar energy system.

The percentage credit may vary, depending on the year the solar energy system is installed. For example, energy systems installed between 2020-2021 can claim a 26% Federal Tax Credit.

This solar energy incentive was introduced in 2005, with 2022 as the original deadline. However, the United States congress extended it in August 2022 and changed the credit parameters slightly.

Taxpayers can claim a 30% tax credit on systems installed from 2023 to 2032. The 30% tax credit also applies to systems installed on or before 31st December 2019. The new legislation also reduced the percentage credit amount to 26% in 2033 and 22% in 2034. Unless new legislation extends it, the credit expires in 2035.

Eligibility

To be eligible for the Federal Tax Credit in West Virginia, a resident must

• Have Enough Tax Credit: Residents of West Virginia can only claim a credit amount within their Federal Income Tax. However, in this situation, they can carry the tax credits over for four years.
• Own a Solar Energy System: Only legal owners of solar energy systems are eligible for the Federal solar Tax credits. The means of ownership may be by purchase or lease.
• Install a Solar Energy System Between 2018 and 2034: This renewable energy tax credit is legislated to expire by 2035. Therefore, such a resident looking to be eligible for the tax credit must have a completely installed solar energy system by 2034 to qualify. Also, the credit can only accumulate for four years. Therefore only users who install by 2018 can claim the credits in 2023.
• Own a system that meets Safety Standards: The solar energy system must be certified safe by the West Virginia Public Utilities Commission and other necessary regulatory bodies.
• Own a commercial or residential Energy System: The Federal tax credit only applies to residences or businesses.
• Own a New Solar Energy system: Residents can only claim a Federal Solar Tax Credit if they are using their solar system for the first time.

What Costs Do the Federal Solar Tax Credit Cover?

The Federal Solar Tax Credit is designed to offset the solar energy system installation cost. Here is a detailed breakdown of the costs it covers:

• Cost of installation: This covers the cost of interconnection and fees charged by the engineer.
• Cost of Equipment: The tax covers every other piece of equipment that is not the panel but useful in installation. This extends to wires and mounting equipment.
• Cost of Solar Panels or Photovoltaic system: The tax covers whatever structure converts solar energy to electricity. This is regardless of the brand and panel type.
• Tax on sales for all the expenses eligible for the tax credit.

How do I claim the Federal Solar Tax Credit in West Virginia?

To claim this solar energy incentive in West Virginia, you must first check your eligibility for the tax credit. Once you’ve confirmed you’re eligible, follow these steps to claim the credit:

• Step 1. Gather documentation: You need all the receipts and invoices for your solar energy system installation. You may also need your energy bill and your tax documents.
• Step 2. Get and Fill out the Internal Revenue Service forms: You must fill out the Residential Energy credits( IRS 5695) and Income tax returns (IRS 1040) forms. The forms are important to calculate the credit amount you are eligible for and your income tax return.
• Step 3. Consult with a Tax Professional: To verify your tax estimates, you may need the help of a professional. Wrong tax calculations mean wrong tax credit returns. Most importantly, your application may not be approved if credit auditors discover major errors.

Net Energy Metering in West Virginia

Net Energy Metering is one of the renewable energy incentives in West Virginia. With this provision, owners of solar energy systems get credit for the energy they produce. This credit offset is then used to offset the energy bill for the owners.

The West Virginia Code §24-2F-8 establishes the laws that guide Net Energy Metering in the state. The most recent major amendments to Net Energy Metering were made in 2015 and 2019 in House Bill 2201.

According to State laws, this solar energy incentive applies to residential owners of solar energy systems. The law further mandates the owners to be customers of Investor Owned Utilities. The policy also extends to electric cooperatives and municipal utility companies. Finally, the law stipulates maximum generating capacities for different IOU types, municipal utilities, and electric cooperatives. Here is a breakdown of the limits:

Under this policy, customers are credited per Kilowatt of the energy their system generates. At the end of a month, the credit amount is deducted from the amount they incur in the electricity bill.

In cases where the energy generated exceeds the energy used, customers are credited for the excess. The credits accumulate to offset the electricity bills in subsequent months. Credit accrued to excess generation accumulates monthly for an indefinite period.

How to Enrol for Net Energy metering in West Virginia

To enrol for this West Virginia’s renewable energy rebate, you must:

• Be Sure you are eligible: You must be a customer of an IOU or electric cooperative. Your panel must also fall within the range of liability insurance cost and generating capacity. Lastly, your panel must meet the regulatory and safety requirements.
• Apply to the Utility: After you’re sure you’re eligible, contact your utility for application. The company would issue you an application that you must fill out.
• Submit your Application: After you fill in the required information, you should submit it to the same utility company. The company sees to the interconnection and the installation of a bi-directional meter.

West Virginia Property Tax Exemption

West Virginia has no local solar property tax exemption provisions. West Virginia also has no solar tax credit. The only incentive for the energy systems is the Net Metering policy.

How to Find the Best Solar Energies Company in West Virginia

According to the United States Office of Energy Efficiency and Renewable Energy's recommendations, solar energy system installation is better handled by certified professionals. There are, however, many solar energy companies in the United States. The following steps are useful in finding the best solar energy companies in West Virginia:

STEP 1: Create a List of Companies

To create a good list of potential companies, you could:

• Use an Energy MarketPlace: You can exploit the internet to your advantage. There are several marketplaces that recommend the nearest certified professional or company to you. Depending on your choice of marketplace, you may be required to provide your address or ZIP code.
• Use Local Government Websites: Some Local governments and Counties have compilations of certified solar energy companies. You can check out the companies and reviews about them. With this option, you are sure to get the ones specific to your locality.
• Ask a Friend or Family: It is plausible that a Friend, acquaintance or relative has installed a solar panel before. Their testimonies can serve as a good source for listing out potential companies to explore.

STEP 2: Streamline Your List

There are many options to streamline your longlist. However, you could examine reviews on marketplaces, app stores, and company websites. Here are a few premises for your comparison and streamlining:

• Delaware Solar Tax and Incentives at a Glance: It is important that your choice of solar energy meets the minimum safety and regulatory requirements. The best way to ascertain this is through certifications. The North American Board of Energy Practitioners (NABCEP) licence is an important certification. You could also explore if the company has the Electrical contractor licence issued in West Virginia.

  Also, the West Virginia Division of Labor licenses contractors in the state. Finally, the Solar Energy International certification is a plus. On the business end, you may want to check if the Better Business Bureau accredits the company. Certified companies can be held to more accountability than unregistered and uncertified ones.

• Experience: The best way to assess a company’s experience may be the number of years in active service. It is plausible that companies that have existed for a long time are trusted with installations.

• Customer Satisfaction: You can get a feel of a company’s customer service from reviews. You could also check if the company has warranty coverages and customer protection policies. With this, you are sure that your complaints will be treated with urgency and expertise.

• Industry Affiliations: Some companies may be affiliated with big brands, regulatory agencies, and the government. These affiliations may be important to determine whom to hire or not.

• Proximity: You also need to be sure the company is accessible. Explore the available customer service options to see how fast they work. Most importantly, companies nearer to you will understand how to handle your installations. Proximity may also affect cost.

• Pricing: You should check the company’s pricing policy. Read about the available incentives, if any exist. You should weigh this against your installation budget before proceeding. Sometimes, booking a session with front desk professionals in the companies may be helpful.

STEP 3: Get Multiple Quotations

It is best to pick five companies and request quotations from them. The documents give you a better shot at fairly accessing your options. You should look out for the details in the quotation and pricing. The quotation may be useful to give you an idea of the company’s experience and expertise.

From customer reviews on solar marketplaces, some companies have consistently appeared on the top radar in West Virginia. Some of these companies include Mountain View Solar, Milestone Solar consultants, and Yellow Lites.

West Virginia Homeowner Statistics

West Virginia is ranked as the tenth smallest state by area size in the US and the twelfth least populous state. As of 2021, West Virginia was estimated to have a population of 1,775,556.

The homeownership rate in the State is estimated to be 73.9%. This rate is slightly higher than the national average rate of 65.8%. The state's median value of owner-occupied housing units stood at $128,800. In West Virginia, 73.9% of homes are owner-occupied. These owner-occupied buildings were estimated to cost a median of $1,101 monthly with a mortgage and $345 without a mortgage. To live in these owner-occupied houses, one can expect to pay a median gross rent of $770.

In the year 2021, the government issued a total of 3,671 building permits. The homeownership vacancy rate stands at 2.2% in the State, while the annual property tax rate is 0.59%.