As you prepare your taxes, we want to ensure that you’re aware of the Federal Investment Tax Credit (ITC) that may be available to you.

What Is the Federal Solar Tax Credit?

The ITC allows you to claim 30% of your system cost as a dollar-for-dollar credit on your federal tax bill. Unlike a rebate or deduction, this credit directly reduces the amount you owe in taxes. The ITC was extended through 2034 under the Inflation Reduction Act, and there are no income limits to qualify.

Key Considerations:

• You must owe federal taxes to use the credit. If your tax liability isn’t large enough in one year, you can roll over the remaining credit to future years until 2034.
• The tax credit applies in the year your system passes the final electrical inspection.

How to Claim Your Solar Tax Credit

• File IRS Form 5695 (Residential Energy Credit) with your federal tax return.
• Enter the credit amount on Schedule 3 (Form 1040) when filing.
• If you expanded your system, you can claim a credit for the cost of the addition.

For commercial installations, refer to Form 3468 (Investment Credit). If you installed an EV charger, use Form 8911.

We recommend consulting a tax professional for personalized advice. If you or your tax expert have any questions, feel free to reach out.

Contact: Amy Vergillo
Email: amy@ecotechsolar.com
Phone: 360-318-7646 x714
Website: www.ecotechsolar.com

FOR IMMEDIATE RELEASE

Deming Library to Expand Programs Thanks to Solar Savings

Deming, WA, February 19, 2025 – The Deming Library is set to become a beacon of sustainability and energy efficiency when Ecotech Solar completes the installation of solar panels funded by Washington’s Clean Energy Fund. Installation begins March 4, 2025 and is expected to last about 2 weeks. This initiative exemplifies the library’s commitment to environmental stewardship and community collaboration.

The solar panels will also help the library reduce energy costs by approximately $5,000 annually. Whatcom County Library System staff will use the savings to support library programs, including initiatives that serve the Nooksack Indian Tribe and broader Deming community such as the Tribal Elders book club, Indigenous film screenings, job skills training and workshops centered on Indigenous traditions.

Ecotech Solar will install 80 panels to create ~35,000 kWh of electricity annually. “We’re proud to partner on this project, demonstrating how renewable energy can create meaningful benefits for our communities and the environment,” said Chris Poh, President at Ecotech Solar.

The project was made possible through the diligent efforts of the Friends of the Deming Library, who own the building. Their application for funding showcased the library’s vision for a greener future. “We’re thrilled to see this project come to life and grateful for the support of the Clean Energy Fund,” said Leaf Schumann, Friends of the Deming Library board member.

The Clean Energy Fund, supported by Washington’s Climate Commitment Act (CCA), awarded the grant to the Deming Library Solar Project through the General Clean Energy Grants program. The CCA drives Washington’s climate action by utilizing cap-and-invest dollars to reduce climate pollution, create jobs, and improve public health.

The Deming Library Solar Project stands as a testament to the impact of local, state, and tribal partnerships in advancing clean energy initiatives while fostering vibrant, resilient communities.

The Deming Library will also be holding an event for the public to discuss the future of electricity in Whatcom County with Jack Pflueger, Energy Consultant at Ecotech Solar. The discussion will cover key topics like frequent power outages, rising electricity rates, changes to net metering, and new incentives for battery backup systems in certain areas of Whatcom County. Attendees can get informed, ask questions, and explore solutions to keep their home and community powered before any incentives change.  

Event details:
Community Conversations: The Future of Your Power
Date: March 28, 6-7pm
Location: Deming Library, 5044 Mt Baker Hwy, Deming, WA 98244
FREE, RSVP requested:  https://events.humanitix.com/the-future-of-your-power
Dessert and coffee provided by Rifugios Country Italian Cuisine courtesy of Ecotech Solar

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About the Climate Commitment Act: Washington’s Climate Commitment Act funds innovative programs to reduce climate pollution, promote public health, and create sustainable jobs. To learn more, visit www.climate.wa.gov.

About Ecotech Solar: Founded in 2004, Ecotech Solar is Whatcom County’s original solar contractor and continues to be the area’s leading locally-owned and operated solar provider by delivering top-quality solar solutions to residents and businesses in Whatcom, Skagit, and Island counties.

TLDR: Puget Sound Energy’s net metering program will likely change next year, so going solar in 2025 secures current benefits before future changes. Demand for solar and batteries is expected to rise in the coming year, and switching to solar now ensures maximum savings.

If you’ve been thinking about going solar or expanding your current system, the clock is ticking. Washington’s net metering program—a key driver of solar affordability—is nearing its limits for Puget Sound Energy (PSE). When Ecotech Solar started in 2004, PSE’s net metering program was in its infancy. It has persisted for the last 26 years, and we have been able to help 1800 of your friends and neighbors reap those rewards by switching to solar. 

Going solar or adding panels to your system in 2025 ensures you’re grandfathered into the current net metering program, preserving the full financial benefits for years to come.

Here’s what you need to know:

What Is Net Metering, and Why Does It Matter?

Net metering allows solar owners to send excess electricity generated by their systems back to the grid, earning credits that offset future energy bills. Currently, this 1:1 credit system means that every kilowatt-hour (kWh) you export can reduce your electricity costs at retail value later, making solar power an even smarter financial choice.

However, net metering isn’t infinite. Washington’s net metering law (RCW 80.60) requires utilities to offer these credits only up to a certain obligation: 4% of their 1996 peak demand. Once a utility reaches that obligation, it can change its rate structure for new solar customers—and those changes likely won’t be as favorable.

PSE’s Net Metering Obligation: Nearing the End

Puget Sound Energy, the largest utility in Washington, has been rapidly approaching its net metering obligation. As of June 2024, PSE had already exceeded 100% of its required obligation. While the utility is allowing new solar installations to join the current net metering program until December 31, 2025 (or until a new rate structure is implemented), time is running out for those who want to lock in these benefits.

Installing solar or expanding your system after 2025 could mean missing the opportunity to secure today’s 1:1 net metering rate. Future changes to the program will likely have lower rates for excess energy sent back to the grid, reducing the financial return on your solar investment.

What’s Next for Solar Customers?

While utilities like PSE are required to seek approval for any proposed changes to net metering through the Utilities and Transportation Commission, the details of future rate structures remain uncertain. Some utilities that have already hit their obligations, such as Orcas Island Power & Light (OPALCO), have adopted new rate systems that compensate solar customers at lower rates for excess energy while adding grid usage fees. Current rates for OPALCO customers translate to about 64% of the full retail value. We won’t know what PSE’s replacement program will look like, but OPALCO is a good example of one local utility’s rates. 

Why Act Now?

1. Lock in current benefits: By installing or expanding your system before new rules take effect, you can ensure you’re covered under the existing 1:1 net metering program.
2. Avoid uncertainty: Future rate structures could reduce the value of your solar investment.
3. Take advantage of incentives: In addition to net metering, other federal and state incentives are still available, making this a cost-effective time to go solar.
4. Protect yourself from rising rates: With utility rates on the rise, solar power lets you take control of your energy costs and generate your own electricity.

Don’t Miss This Window of Opportunity

We anticipate high demand for new solar installations and system expansions in 2025. With rebates, incentives, and exclusive financing opportunities available now, many homeowners are recognizing the value of solar this year.

Investigating your options now is the best way to ensure you can go solar before any incentives change. We are happy to help you look into options now so there aren’t any surprises or missed opportunities in the future. After more than 20 years of navigating changes in the solar industry, we’re committed to finding solutions that work for our community.

The Solar Energy Industries Association (SEIA) and Wood Mackenzie released their Solar Market Insight Report for Q4 2024, revealing significant trends, steady growth, and milestones in the U.S. solar industry. Here’s a summary of the key findings:

Industry Growth

• Record Installations: The U.S. installed 8.6 gigawatts (GW) of solar capacity in Q3 2024, marking a 21% increase compared to the same quarter last year. This represents the largest third quarter for solar installations on record​
  Manufacturing Milestone: U.S. solar module manufacturing capacity reached nearly 40 GW annually, with the restart of domestic solar cell production for the first time since 2019. This growth reflects the impact of federal incentives and increased private investments​
  

Solar Market Trends

• Utility-Scale Dominance: Utility-scale projects accounted for 6.6 GW of the new capacity, showcasing the sector’s central role in meeting rising electricity demand.
• Community and Commercial Solar: These markets saw year-over-year growth of 12% and 44%, respectively, driven by businesses and community initiatives​
  

Leading States

• Texas: Continued to lead U.S. solar installations, adding 2.4 GW in Q3 2024, representing 26% of the nation’s new capacity.
• Florida: Ranked second in cumulative solar capacity, with nearly 30,000 households installing solar in 2024​
  

Future Outlook

• Steady Growth Ahead: The report predicts an average annual growth of 2% for the next five years, with total installations reaching nearly 450 GW by the end of 2029. Solar power is expected to serve over 71 million homes by then​
  Challenges: Despite robust demand, the industry faces constraints related to interconnection delays, labor shortages, and supply chain issues​
  

The report underscores the transformative impact of supportive policies and the industry’s commitment to expanding solar energy access. At Ecotech Solar, we’re proud to be part of this momentum, bringing solar to the Northwest for over 20 years and contributing to a more sustainable future. For more detailed insights into these trends and what they mean for the industry, explore the full report on SEIA’s website here.