✅ Federal Incentives
All federal benefits apply to entities in West Virginia.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.
⚡ Property Tax Exemption
West Virginia offers a property tax exemption for solar energy systems. This means that installing a solar system will not increase your property's assessed value for tax purposes.
⚡ Rural Energy for America Program (REAP)
The REAP program provides grants and/or loans to agricultural producers and rural small businesses for renewable energy systems. Competitive grants are available for up to 50% of total eligible project costs, and loan guarantees are available for up to 75% of total eligible project costs.
⚡ Power Purchase Agreements (PPAs)
In 2021, West Virginia legalized PPAs, allowing municipalities, commercial businesses, nonprofits, and homeowners to install solar systems with little to no upfront cost. The third-party developer owns and maintains the system, and the customer purchases the electricity at a fixed rate, often lower than the utility's rate.
✅ Utility Incentives
⚡ Net Metering
West Virginia requires all utilities to offer net metering. Under net metering, excess electricity generated by your solar system is credited to your utility account at the full retail rate. These credits can offset future electricity bills, and any remaining credits at the end of the year are paid out at a utility-specific avoided cost rate. The state's total net metered capacity is capped at 3% of the previous year's peak load capacity.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
West Virginia offers a combination of federal incentives and state-level programs to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits. The federal 30% solar tax credit, property tax exemption, REAP grants, and net metering policies provide financial support and compensation for solar energy production. Additionally, nonprofits can benefit from direct payments equivalent to the federal ITC. These incentives make West Virginia an attractive state for solar energy adoption.