Residential Solar & Wind Incentives – West Virginia
For residential renewable energy systems in West Virginia, the federal government currently offers an unlimited 30% tax credit toward the purchase price of a solar electric, solar hot water, or wind energy system, including all materials and labor. This tax credit rolls over into future years if the tax credit exceeds your tax liability during the year you purchase the system. In addition, the State of West Virginia offers a 30% tax credit similar in all other aspects to the federal government credit except that it is capped at a maximum tax credit of $2000.
The tax credit described above reduces the overall net system cost. The next two financial incentives pay back the renewable energy system owner over time. The first is the cost of the generated energy itself. For solar electric and wind energy systems, this is the electricity that you save and/or sell back to the utility company, which averages $0.08 per kilowatt-hour (kWh) in West Virginia. For solar hot water, it is the water-heating fuel (typically natural gas, propane, oil, or electricity), which varies greatly depending on the fuel type.
For solar electric and wind energy systems, there is yet another financial incentive that pays pack the renewable energy system owner over time - renewable energy credits (REC's). For solar electric systems, these are called solar renewable energy credits (SREC's). Effectively, West Virginia residents currently receive an additional ~$0.05 / kWh for all electricity generated by their solar electric system thanks to SREC's. SREC's aren't quite that simple, however, and take some explaining - see our explanation here
Appraisers also estimate that renewable energy systems increase a building’s resale value significantly, but this depends heavily on the home buying market and the buyers at the time of listing the home.
Commercial Solar & Wind Incentives – West Virginia
Commercial incentives in West Virginia are the same as the residential incentives described above except that businesses may be eligible for accelerated 5 year depreciation as well as 50% bonus depreciation in 2012.
Click to view SREC Explanation