Seattle City Light Expected to Hit State’s Solar Incentive Cap

With the increased demand and popularity of solar generation, Seattle City Light estimates that the state annual incentive payment for solar customers will be reduced by approximately 35 percent for the 2015-2016 fiscal year, which ends today.

Photo of worker installing a solar panel.With the increased demand and popularity of solar generation, Seattle City Light estimates that the state annual incentive payment to each of its solar customers will be reduced by approximately 35 percent for the 2015-2016 fiscal year, which ends today.

City Light is expected to reach its solar incentive cap set by the Washington state Legislature due to various factors, including the increase in average solar system size installed, greater solar resources and decreasing retail sales. The cap determines how much money in state incentives each utility can distribute to its customers who own solar panels.

City Light will not know the actual reduction amount until all production reads have been collected. Solar customers will be notified in September 2016.

Solar customers receive a variety of additional benefits for engaging in solar generation, including the federal solar investment Tax Credit, a Washington state sales tax exemption for systems less than 10 kilowatts and net metering. These benefits will not be affected by the incentive payment reduction.

To stay updated on the solar incentive cap, visit the City Light solar incentive  cap web page at: http://www.seattle.gov/light/solarenergy/incentivecap.asp .

Seattle City Light is the 10th largest public electric utility in the United States. It has some of the lowest cost customer rates of any urban utility, providing reliable, renewable and environmentally responsible power to about 750,000 Seattle area residents. City Light has been greenhouse gas neutral since 2005, the first electric utility in the nation to achieve that distinction.