Puget Sound Energy has seen a rapid growth of its customers connecting their small business or home solar system to the utility in 2009, making it as the fastest-growing year for renewably energy. With the addition of nearly 200 solar systems installed by its customers, the total number of grid-connected systems has increased to 516 making it the largest producer of renewable energy from customer’s solar arrays in Washington. In the year 2007, the total number of customers connected to the PSE grid was only 100. The total generating capacity from the customer’s solar systems has increased to 2 MW.
Cal Shirley, Vice President of Energy Efficiency Services for PSE, said the commitment shown by customers for renewable energy and the steps taken by elected official’s leadership to promote the state and federal incentives for solar power have made this significant increase in grid-connected systems possible.
Shirley said that two important incentives led to this amazing increase. The first was the removal of cap of $2000 on federal tax for home solar systems. This step was initiated by Sen. Maria Cantwell and Rep. Jay Inslee of Washington and now homeowners can avail a full 30% credit for their solar investment. For example, a homeowner who invests $25,000 for a solar system will be eligible for a credit of approximately $8,300 instead of a maximum of $2,000 credit under the previous system.
The second important incentive is the production payment program adopted by State of Washington and administrated by PSE. Residential customers are paid for the solar power produced by them through this program. The payment through this program is variable with preference given to customers who utilize Washington-made solar modules and power inverters. The sliding scale ranges from $.15 per kilowatt-hour to $.54 per kilowatt for solar systems comprising Washington-made solar modules and inverters. Another incentive, net metering, from PSE allows the meter to spin backwards thus allowing the customers to be credited for the electricity produced from the renewable energy source. Most customers take advantage of state incentives as well as the company’s incentive.