West Virginia solar 101: must read before you buy solar panels

The Solar Investment Tax Credit (ITC) allows homeowners to claim 26% of the cost of their solar power system installed until 2022 as an income tax deduction. For example, if your solar system costs $20,000, you are eligible for $5,200 (26% of the total gross cost) in tax credit. Solar system cost comprises not only the money spent on solar panels, but also freight shipping costs, professional installer fees, tools bought or rented and so on. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Solar laws in West Virginia make Net Metering programs available to customers of all utility companies, which are required to offer customer-generators the same tariffs as they do the rest of the clients. The program gives households an opportunity to send any excess electricity back to the grid instead of storing it with batteries.

When you sell your solar power to the utility, you receive credits that can be used to offset your next bills. In West Virginia their value is equal to full retail electricity price. Your credits may be rolled over indefinitely, but don’t apply for fixed costs or demand charges.

Renewable Energy Credits are certificates granted to any person or entity upon generation of each MWh of clean electricity. Unlike with Net Metering, you don’t need to sell any electricity to get credits. The value of RECs is always changing, which makes them similar to stock market assets. Based on the available data, selling RECs could mean anywhere from $300 to $1,000 annually for a 10 kW solar system. To participate, you have to apply for approval to the West Virginia Public Utility Commission. After that, you can create a REC account with the Generation Attribute Tracking System (GATS) to begin storing and selling your credits.

It is legal to install solar panels on your house in West Virginia. The state laws don’t allow homeowners associations (HOAs) to prohibit or unreasonably restrict installation of solar PV systems. All such documents created before June 8, 2012 are void and unenforceable. However, association members may still vote to implement restrictive rules, so it’s best to contact your HOA or study its declaration to find out more. Reasonable restrictions refer to those related to historical, architectural, religious or cultural importance of a building. Also, state and local authorities may develop their own health and safety standards.

West Virginia’s most frequent natural disasters include floods, wildfires and storms. Raging water or wind damages the infrastructure, interfering with both generating plants and power lines. Your PV modules are designed to handle most hurricanes and hail, meaning you will have a supply of energy in case of a blackout. In 2021, severe weather knocked out power to more than 20,000 households. Power outages are considered a longstanding issue in West Virginia. According to the Environmental Protection Agency, extreme weather events are becoming more frequent and powerful, adding to the list of reasons to go solar.