2022 West Virginia Solar Tax Credits, Rebates & Other Incentives
Here’s a quick look at the solar incentives in West Virginia:
- Federal Solar Tax Credit (ITC)
- Net Metering
- West Virginia Solar Rights
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How Much Can You Save With Solar Incentives in West Virginia?
In this article, we’ll discuss the solar incentives and rebates available to West Virginia homeowners. When you’re ready to speak with a qualified professional, follow the links below. Each of these companies can help you identify and apply for incentives available in West Virginia.
Jump to Section:
- Solar Rebates, Tax Credits and Incentive Programs in West Virginia
- Net Metering in West Virginia
- Federal Solar Tax Credit
- FAQ: West Virginia Solar Incentives
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There are a number of federal and state incentives available in West Virginia to make solar energy more enticing. Some incentives lower the upfront cost of going solar, while others provide post-installation benefits to make the long-term return on investment significantly better.
Going solar in West Virginia is an expensive endeavor, costing most homeowners around $2.64 per watt. Given that most homeowners in the state need a system that is at least 11 kilowatts, the typical cost to install solar panels is $29,040. Although there are plenty of solar financing options available, many homeowners will still struggle to justify spending so much converting to this renewable energy source. Below, we’ll be discussing all of the solar incentives and rebate programs that you can take advantage of in West Virginia in 2022.
Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.
Current Solar Rebates, Tax Credits and Incentive Programs in West Virginia
The following table provides a quick glance at the most appealing solar incentives West Virginians can enjoy. We’ll include a brief description of each, but more information can be found later in this article.
| West Virginia Solar Incentive | Description |
| Federal Solar Tax Credit (ITC) | The federal solar tax credit is an incentive provided by the federal government to entice all homeowners to convert to solar energy. The credit gets applied to your federal tax liability, and you’ll have the option to roll over unused credit with some restrictions (discussed below). The credit is for 26% of your entire solar panel system cost.1 In Virginia, where most homeowners pay an average of $29,040 to go solar, the credit amounts to $7,550, on average. |
| Net Metering | Net metering is a billing policy offered by utility companies and mandated by the State of West Virginia. It helps homeowners maximize their energy savings, often allowing them to offset their electric bills entirely. Basically, you can offset costs for incoming kilowatt-hours using excess energy production from times when your panels produce more than you use.2 We provide more details below. |
| West Virginia Solar Rights | Although West Virginia doesn’t have many solar incentives, the state does have laws that protect every taxpayer’s right to install solar panels and maintain access to sunlight during peak hours.3 The West Virginia Solar Rights Laws mean no governing body (including a homeowners association) can prevent you from installing solar panels, and no other home or commercial entity can block your panels from receiving sun. |
West Virginia Solar Incentives
As a state that still relies so heavily on coal for energy production, it comes as no surprise that the Solar Energy Industries Association (SEIA) ranks West Virginia at 48 out of 50 states for solar friendliness.4 As such, there are understandably very few solar incentives available statewide. Perhaps the most significant incentives for solar in West Virginia are the net metering policy and the state’s Solar Rights Laws.
Let’s start with the laws. In many cases in the past, strict HOAs and municipal governing bodies have attempted to restrict or prohibit solar panel installation, which has led to states creating solar rights laws. West Virginia is one such state with laws preventing any governing body from prohibiting solar panels — although the members of an HOA can vote to restrict panels in their own developments. Otherwise, taxpayers throughout the state maintain the right to install solar power and enjoy uninhibited access to sunlight during peak sunlight hours. The laws allow you to work with your neighbors or nearby commercial buildings to maintain your access to sunlight if needed.
West Virginia Solar Sales Tax Exemption
Some states have a solar sales tax exemption that prevents solar customers from having to pay taxes on their solar equipment and installations. This is usually done in an effort to lower the financial barrier to entry when it comes to installing solar energy systems. Unfortunately, West Virginia does not have this exemption, so you’ll still have to pay sales tax when converting.
Along with the sales tax exemption, West Virginia also lacks a property tax exemption, which typically prevents your property taxes from going up after you install your solar power system. Home improvements that boost your home value also bump up your assessed value. Since your property taxes are a percentage of your home’s assessed value and solar panels make your property more valuable, going solar will cause your property taxes to increase in WV.
Net Metering in West Virginia
Net metering is a popular solar incentive across the U.S. that makes it easier for homeowners to offset or even eliminate their electric bills using their solar panels. Most home solar projects are grid-tied systems, meaning power can pass in both directions between your home and the grid via interconnection.
At night or on cloudy days, the grid will supply any additional energy you might need, given that the photovoltaic equipment won’t be at peak production. On sunny days, your system can overproduce energy and send the excess to the grid. Net metering policies dictate how much your charges for incoming energy will be reduced for the excess energy you’ve sent to the grid during your billing period.
West Virginia mandates that all utilities in the state offer net metering programs, but the specifics can vary between providers. Check with your electric company about its net metering policy.
Federal Solar Tax Credit
All West Virginia residents will also be able to take advantage of the federal solar investment tax credit, commonly referred to as the “ITC.” This credit is offered nationwide and provides a massive tax credit in the amount of 26% of your total solar system cost. Given that homeowners in West Virginia typically pay an average of $29,040 to go solar, the average ITC is around $7,550. The credit gets applied to your federal income taxes owed for the year your system is installed and turned on.
The ITC rate will drop to 22% in 2023, meaning the typical credit amount will only be $6,389 as opposed to the full $7,550. The credit will no longer be available for residential customers in 2024 unless Congress renews it, although commercial customers will still have access to a 10% ITC. As such, it’s wise to install your solar PV system as soon as possible to get the largest credit.
If you owe less in federal income taxes than your credit amount, you can roll over any leftover credit to the following tax year.
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FAQ: West Virginia Solar Incentives
The EcoWatch team frequently gets questions about solar tax incentives, rebates and ways to save money when converting to clean energy in West Virginia. Below are some of the questions we see most often from homeowners in your area.
Unfortunately, West Virginia does not have a state solar energy tax credit, which is unsurprising given the state’s reliance on coal for energy production. However, West Virginians will still have access to the federal tax credit, which averages $7,550 in the state.
Yes, there are a few solar incentives available in West Virginia in 2022. Most important is the federal tax credit, which is worth 26% of your entire equipment and installation cost (an average of $7,550 in WV) applied to your federal tax liability. This credit alone can reduce your effective total to go solar from $29,040 to $21,490.
Second, net metering is mandated throughout the state and helps homeowners eliminate their electric bills and maximize energy savings.
Finally, the West Virginia Solar Rights Laws protect every taxpayer’s right to install solar panels — even in strict HOAs or villages — and maintain free access to sunlight on their property for solar energy production.
Unfortunately, there are no rebates available for solar power in West Virginia. The utility companies in the state even lack energy-efficiency upgrade rebates, but hopefully, some rebate programs will be added as solar becomes more prevalent in the area. You can check the DSIRE database for updated information before going solar or contact your local utility provider.5
Yes, solar panels will increase your property taxes in West Virginia. All home improvements that increase the value of your home — including installing a solar system — will cause your property taxes to go up as well. Some states have a solar property tax exemption to prevent this from happening, but West Virginia does not. However, in most cases, homeowners still find that installing solar panels is worth it in WV.
