Guide to Installing a

Solar Electric System

PHOTO CREDIT: BROTHERS ELECTRIC AND SOLAR

This guide is designed to provide Seattle City Light customers with information on grid-connected
solar electric systems. It provides background on solar electric systems, the components required,
and outlines the steps to take if you want to install and interconnect a system to the utility grid.
For solar questions not answered by this guide please contact Seattle City Light’s Conservation Help
Line at (206) 684-3800 or by email at rescons.scl@seattle.gov.
 Guide to Installing a Solar Electric System

Contents

Introduction ............................................................................................................................................3
The History of Photovoltaic (PV) Technology.....................................................................................4
The Components of a Grid-Tied PV System.......................................................................................5
Siting Your System................................................................................................................................6
Selecting the Right Size System For You...........................................................................................8
Permit Requirements ........................................................................................................................ 10
Costs and Incentives.......................................................................................................................... 12
Maintenance, Resale, & Recycling.................................................................................................. 15
Picking a Contractor .......................................................................................................................... 16
Installation and Incentive Checklist: 9 Steps to Solar Power...................................................... 17
Additional Resources......................................................................................................................... 20

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 Guide to Installing a Solar Electric System

Introduction

Why you may want to install a solar electric system for your home or business:
More and more City Light customers are showing interest in solar electric systems for their homes
and businesses. Why?
ƒ Solar electric systems are safe, reliable, pollution free, and use a renewable source of
energy—the sun. Most systems have no moving parts and are increasingly easy to install.
ƒ The option of net metering, or interconnecting a customer generating system to the utility
grid, makes solar electric systems more economically viable.
ƒ Landmark federal and state legislation have created new financial incentives for owning and
operating a solar electric system.
If you are interested in making a long-term investment to protect yourself from rising energy costs
and want to reduce your personal environmental impact, now may be the time to learn more about
installing a solar electric system for your home or business.

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 Guide to Installing a Solar Electric System

The History of
Photovoltaic (PV)
Technology

The first solar cell was created in 1883. It was inefficient by today’s standards, converting only 1–2%
of sunlight into electricity. The breakthrough in solar cell technology came in 1954 when researchers
at Bell Laboratories stumbled across the photovoltaic (or PV) properties of silicon while
experimenting with new transistor technologies. Three years later, PV research began in earnest to
develop an independent solar energy source for space technologies. Thanks to continuing research,
modern commercial PV cells have improved to 11–15% efficiency.
Historically, PV has been used extensively in areas that are not served by a power grid. As PV prices
have dropped, and grid energy has become more expensive, PV systems are increasingly used in
grid-tied applications.1
A solar electric or PV cell uses a semiconductor material similar to that used in computer chips to
absorb sunlight and convert it into electricity. Multiple solar cells are linked together to form a
module or panel. Multiple modules/panels are connected to form a PV array.
There are three main types of PV panels: monocrystalline, polycrystalline, and amorphous silicon
(thin film). A monocrystalline cell is the most efficient per area (produces the most power per square
foot) and requires the most silicon. On the other end of the scale, amorphous silicon is the least
efficient per area and requires the least amount of silicon. Most mono- and polycrystalline cells are
incased in a glass panel with a metal frame. Because amorphous silicon cells use less silicon, they
are more flexible and can be used in a variety of applications, including a peel-and-stick panel that
adheres to a standing seam metal roof.

1Historic summary provided by Solar Oregon, http://www.solaroregon.org/learn/solar_electric/history-of-pv,

accessed February 25, 2009.

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 Guide to Installing a Solar Electric System

The Components of
a Grid-Tied PV System

A PV System includes:
1. PV Array—Multiple PV panels installed together are called a PV array. Mounting arrays to
rooftops is most common, yet they can also be located on a pole, a ground mounted rack,
parking area shade covers, window awnings, etc. The PV array produces Direct Current
(DC) power.
2. DC Disconnect—The DC Disconnect is a safety device that, when manually opened, stops
power running from the array to the rest of the system. The DC disconnect is used during
system installation and anytime your contractor needs to work on the system.
3. DC/AC Inverter—The PV array produces DC electricity, however, we use Alternating Current (AC)
electricity in our buildings and power grid. The Inverter converts the DC power to AC power.
4. AC Disconnect—The AC Disconnect is another safety device and is often incorporated into the
Inverter. Seattle City Light does not require an AC Disconnect on most small residential
systems. (For details on this exemption, contact your Electric Service Representative—see
Step 2 on the Installation and Incentive Checklist, page 17.)
5. Production Meter—The Production Meter measures the energy output (in kilowatt-hours,
kWh) from your system and is used to record the amount of electricity generated. This
component is not critical to power generation, but is necessary in order to take advantage of
Washington State’s Production Incentive Program (as described in the Incentives section,
page 12).
6. Building Breaker Box and Standard Utility Meter—Also called your building’s circuit panel or
electrical service panel, the Breaker Box is where the power from the PV System enters the
building. If the building is using electricity, the PV-produced electricity will be used first. If the
building needs more electricity than the PV System is producing, utility grid power is
automatically pulled into the building. When the PV System produces more electricity than is
needed, the excess flows back out to the utility, spinning your utility billing meter backwards in
the process. You earn credit for the excess power produced and can use that credit when the
system is not producing energy. This process is referred to as “net metering.”

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 Guide to Installing a Solar Electric System

Siting Your System

A well-designed solar electric system has clear and unobstructed access to the sun for most of the
day throughout the year. Siting a PV system correctly is critical in order to achieve maximum power
production and thus maximum energy offset and financial return.

Orientation and Tilt

Optimal orientation for solar panels is true south. As you move away from true south, a system will
suffer production losses, up to as much as 15–25% for panels oriented east or west. However with
advancements in technology these losses are decreasing as inverter manufacturers learn how to
maximize off-of-south orientations. In Seattle, solar panels produce the maximum power annually
when mounted at a tilt of roughly 30 degrees.

Shading
Avoid shading as much as possible. Even minimal shading can significantly impact power
production. You will want to consider potential shading from trees, buildings, power lines, telephone
poles, and obstructions like chimneys and vent pipes.2 Your contractor should include the impact of
obstructions on your power production estimate.

Sloped Roof
A significant portion of your system cost will be in the installation of the panels, so if you plan on
replacing your roof in the next 5–7 years, consider doing that first. Otherwise, your installer will need
to come back to remove the panels for the new roofing to be added, and then re-install the panels—
all at your cost. Overall, you want to be sure your roof is in excellent long-term condition, because PV
systems are designed to last a minimum of 20 years and many will last even longer. So, if you are
unsure about the structural integrity of your roof, have it professionally inspected to verify its
condition and suitability.

2Google SketchUp is one tool that may help you model the impacts of shading. Learn more at
http://sketchup.google.com/.

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 Guide to Installing a Solar Electric System

Flat Roof
Most residential and small commercial PV systems are installed on sloped roofs, yet it is possible to
install on a flat roof. Contractors typically avoid penetrating a flat roof and instead use some sort of
ballasted (weighted) means of securing the panels against wind. Building code officials will be
concerned about the wind sheer and roof loading of such a system. If a flat roof system is in your
future, plan to submit a professional engineer (PE) stamped drawing illustrating how the system will
be secured to the building.

Tracking
Most residential and commercial PV installations are mounted to roofs and are fixed in place. If your
system is going to be mounted on a pole or a flat roof, you have the choice of installing a tracking
device. The simplest form of tracking is to seasonally adjust the tilt angle of the panels. Automatic
tracking devices allow the panels to follow the sun as it moves through the sky, receiving direct light
more often than a fixed system. Electrically operated and thermally operated trackers have their own
costs, benefits, and drawbacks. Keep in mind that without a tracker, your PV system has no moving
parts. While automatic trackers can increase production by 20–40%, they do add moving parts to
the system, so there are operation and maintenance concerns to consider. Pole-mounted systems
also have the additional cost of the pole installation.

Learn more about all of these siting issues by reading articles in Home Power magazine:
www.homepower.com.

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 Guide to Installing a Solar Electric System

Selecting the Right

Size System For You

Three core factors affect the sizing of your system: your electricity usage, space availability on your
property, and your budget.

Your Electricity Usage

Do you want to try to produce 100% of your power or some smaller percentage?
While any excess production from month to month will carry over as a credit on your utility bill (net
metering), you will not want to install a system that produces more than 100% of your power as the
utility will not reimburse you for excess power produced at the end of the year.3 You may also not
want to size the system too large if you are planning more energy conservation measures for the
future.
To determine how much power you use right now, look for the kilowatt-hour (kWh) consumption on
your utility bill. Sum the kWh for the past year to get your annual electricity usage. For help
understanding your bill, check out http://www.seattle.gov/light/help/#billtour.
You can also use the Home Resource Profile (http://www.seattle.gov/conserve/homeprofile/) to
look at your energy use over the year and potential conservation measures to reduce your usage.

Space Availability
The amount of unshaded, easy-to-access, space available for mounting panels will limit the size of
the system. You can use In My Back Yard (IMBY), an online tool created by the National Renewable
Energy Laboratory to estimate the area on your property available for mounting a system. IMBY
allows you to draw a system on a map of your property and then estimates the specifications of the
array given the size and orientation of your drawing.
PV panels vary in their dimensions. While a vast number of PV panels are undergoing research and
development, a limited number are available on the retail market. Home Power magazine
(http://www.homepower.com) is one resource for comparing the various commercially available
panels. Each year Home Power publishes evaluations of different panels. Local contractors will have

3 The year is defined as May 1st through April 30th by state law.

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 Guide to Installing a Solar Electric System

particular brands they install regularly. When talking with them, find out which panels they use, why
they like them, if the panels are UL Listed (required for electrical inspection and utility interconnection)
and the panel’s warranty length. A standard industry PV panel warranty is 20–25 years, and
manufacturers expect the panel will produce 80% of its rated capacity at the end of the warranty
period.

RESOURCE
In My Back Yard (IMBY): http://nrel.gov/eis/imby

RULE OF THUMB
1 kilowatt (kW) of PV panels will require approximately 100 square feet of area.
If PV panels are unshaded, oriented to true south and mounted at approximately 30 degrees,
they will produce approximately 900–1,000 kilowatt-hours (kWH) per year in Seattle.

Your Budget
It is a good idea to evaluate your budget and goals before choosing your system. Some questions to
consider include: What is my budget for this project? Will I finance or pay for it out of my savings?
Keep your budget in mind as you read the Cost and Incentives section of this guide (starts on
page 12).

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 Guide to Installing a Solar Electric System

Permit Requirements

Electrical Permit
Electrical permits are required for all solar electric systems and must be secured by the person doing
the electrical work. In the vast majority of cases this will be your electrical contractor. Owners with
the required planning and installation skills, who want to complete the installation themselves, can
also obtain the electrical permit. Your contractor must submit an electrical drawing and the system
will be subject to a field inspection after installation. Typical field-inspection permit fees for small
systems are approximately $190. If your system design is atypical, your contractor may be required
to go through a plan review.

Building Permit
Building permits in Seattle are required for solar arrays when any of the following apply:
1. The array weight is 1,000 pounds or more.4
2. The installation is structurally complex (determined by Dept. of Planning & Development).
3. The solar project is part of building alterations or additions valued over $4,000.
4. The solar project requires construction of stand-alone support structures valued over $4,000.

RULE OF THUMB
As a point of reference, a 2 kW PV system will weigh approximately 500 pounds.

RESOURCE
For Seattle residents, permits may be obtained at the DPD Applicant Services Center,
700 Fifth Avenue, 20th floor, (206) 684-8850, or at http://www.seattle.gov/dpd/Permits/.
For electrical permit questions, contact DPD’s Electrical Technical Support at (206) 684-5383.

4Building permits may be required if your system will be installed on a flat roof. In such an installation, specific
calculations regarding roof loading and wind sheer are required.

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 Guide to Installing a Solar Electric System

Land Use Requirements

In Single Family, Multi-family and Residential Small Lot zones5, solar panels may be mounted to
extend up to 4 feet above the zone's height limit, and/or extend up to 4 feet above the ridge of a
pitched roof. Also, the total height from existing grade to the top of the solar panels may not extend
more than 9 feet above the zone's height limit.
In the Single Family and Residential Small Lot zones, a solar panel exceeding the zone height limit
must be placed so that it does not shade the property to the North on January 21, at noon, any more
than a structure built to the maximum permitted size for that zone. For assistance in determining
solar exposure, please see CAM 417: Sun Chart: Determination of Solar Exposure.

Set-Back Yard Requirements

Ground or pole mounted PV systems cannot be located in front yards. They must be at least 15 feet
from back property line and 3 feet from side property line. More specifics on set-back requirements
can be found in CAM 420.

RESOURCE
CAMs: http://www.seattle.gov/dpd/publications/client_assistance_memos_(CAMs)

5To determine the zoning on your property, visit

http://www.seattle.gov/dpd/Research/Zoning_Maps/default.asp.

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 Guide to Installing a Solar Electric System

Costs and Incentives

Typical System Cost

Cost depends on a number of factors. Most residential systems in Seattle are 2 to 3 kilowatt (kW)
systems with an average installed cost of $8,000–$10,000 per kW for a total investment of between
$16,000–$30,000. The cost is typically broken down into the following four areas: PV panels, labor,
inverter, and balance of system components (racking, wiring, conduit, etc. and all permits/fees).

Net Metering Your Grid Tied System

If you generate more electricity over a billing period than you consume, the utility will credit your
electric bill for every kilowatt-hour of electricity sent back to the power grid. The credit is applied at
the retail rate for power. Net metering will continue for the life of the solar electricity installation.

Washington State Sales Tax Exemption

Until June 30, 2011, all solar electric systems less than 10 kW in size are exempt from the state
sales taxes. From July 1, 2011, through June 30, 2013, solar electric systems less than 10 kW in size
are exempt from 75% of the state sales tax. The tax exemption expires June 30, 2013.

RESOURCE
Your Installer will provide the required forms. Exemption legislation: RCW 82.08.02567

Washington Renewable Energy Production Incentive

As of August 2006, Washington State provides financial incentives for electricity generated from
renewable energy resources. Eligible electricity producing renewables include solar, wind, and
anaerobic digestors (converts methane gas captured from livestock manure to electricity).
The incentive is based on the total number of kilowatt-hours (kWh) of electricity generated between
July 1 and June 30 (or the closest regular billing cycle) of the following year. Customers with eligible
generation systems who have signed up for the program by submitting the Department of Revenue
(DOR) application form and received certification from the DOR, will receive a letter and application

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 Guide to Installing a Solar Electric System

form once per year from City Light. The letter document’s the system’s production based on City
Light’s reading of the production meter. Once the customer approves the kWh amount and returns
the signed application back to City Light, they will receive a check for the incentive payment. Utilities
that pay customers renewable energy incentives are reimbursed by a credit on their state taxes.
The program authorizes utilities to pay the following for the electricity produced by PV systems:
ƒ $0.15 /kWh for a PV system with no “Made in Washington” components
ƒ $0.18 /kWh for a PV system with a “Made in Washington” inverter
ƒ $0.36 /kWh for a PV systems with “Made in Washington” panels
ƒ $0.54 /kWh for a PV systems with “Made in Washington” panels and inverter
Modules made in Washington are expected to be available in 2009/2010. The program is capped at
$5,000 per year, per customer, and expires in 2020.

RESOURCES
Washington Legislation
ƒ Renewable Energy Production Incentive—WAC 458-20-273:
http://apps.leg.wa.gov/WAC/default.aspx?cite=458-20-273
ƒ Washington State Department of Revenue registration form:
http://northwestsolarcenter.org/5101%20q%26a.pdf

Federal Income Tax Credits

The federal Energy Policy Act of 2005, as amended by the Emergency Economic Stabilization Act of
2008, includes provisions for individuals and businesses to claim a 30% federal income tax credit for
the cost of solar installations. Tax credits apply to systems placed in service before January 1, 2016.

RESOURCE
For information on Federal Tax Credits, visit:
ƒ http://www.dsireusa.org/
ƒ http://www.energysavers.gov/

Green Tags
System owners have the option to sell their “green tags,” also known as Renewable Energy Credits
(RECs) for an additional revenue source associated with the production of power. Customers may,
however, choose not to sell the green tags, in order to claim the environmental benefits of the clean
electricity for their own use. The REC market is very new. As demand for RECs from states,
businesses, and individuals increases, we expect the value of RECs to increase as well.

RESOURCE
Northwest Solar Cooperative: http://www.solaroregon.org/get-involved/northwest-solar-coop

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Example Cost Calculations

The examples below illustrate how the different sources of revenue and savings come together to
impact the investment in a solar electric system.6 The snapshots are focused on the first five years
after installation, as that is when most of the financial benefit will be received. However, savings on
your energy bill through net metering will continue, for the lifetime of the system. Both examples
below assume a 1 kW PV system installed for $8,000 will produce 900 kWhs per year and that the
system was deemed exempt from the state’s sales tax. The examples show the financial impact of
using Washington-made solar modules, and assumes the installed cost (labor, equipment and all
permit fees) of both Washington-made and out-of-state panels is the same.7

Example #1
1 kW PV system (producing 900 kWh/year)
PV System Installed Cost $8,000
Federal Incentives—Tax Credit, 30% of total cost $2,400
Incentive (non-WA made components)—15 cents /kWh, 5 year total $675
Net metering—Seattle City Light @ 7 cents /kWh, 5 year total $315
Green tags sales @ 2 cents/kWh, 5 year total $90
Incentives—Total after 5 years $3,480
Percent of system cost recouped after 5 years 44%
Cost after 5 years of receiving incentives $4,520

Example #2
1 kW PV system (producing 900 kWh/year) —with Washington-made modules
PV System Installed Cost— $8,000
1 kW PV system, producing 1000 kWh /year
Federal Incentives—Tax Credit, 30% of total cost $2,400
Incentive (non-WA made inverter)—36 cents /kWh, 5 year total $1,620
Net metering—Seattle City Light @ 7 cents /kWh, 5 year total $315
Green tags sales @ 2 cents/kWh, 5 year total $90
Incentives—Total after 5 years $4,425
Percent of system cost recouped after 5 years 55%
Cost after 5 years of receiving incentives $3,575

6 To get a rough idea of total costs, including possible monthly cash flows if you finance your system, check out
the Clean Power Estimator at http://kyocerasolar.cleanpowerestimator.com/kyocerasolar.htm.
7 Thanks to Mark Aalfs at Tacoma Power for the initial version of these examples.

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Maintenance, Resale,
& Recycling

Regular Maintenance
There is very little maintenance required on a PV system with no moving parts. Some system owners
wash their panels, but in the Northwest, our climate tends to take care of this chore. You may want
to brush off the panels if they tend to collect leaves, but other than that, your system should operate
as designed with no intervention. You can also keep track of your production by reading your
production meter or checking the inverter display.

Resale Value
The affect of a solar system on the appraised value of your home can be hard to predict, but
according to a study by ICF Consulting, every $1,000 reduction in annual energy bills increases a
home’s resale value by $10,000 to $25,000. However, homes are generally valued in comparison to
similarly sized and aged homes around them, and if there aren’t many solar homes in your
neighborhood, the appraiser may not have a bar to measure against.8 The market for solar homes
continues to grow as energy costs increase along with an increased interest in sustainable building.

Recycling PV panels
While it will be another 10 years until the first large number of photovoltaic panels reach the end of
their life, the manufacturing members of the European association, PV CYCLE, have committed to
setting up a voluntary collection and recycling scheme for end-of-life modules. They are committed to
collecting a minimum of 65% of PV modules installed in Europe since 1990, and to recycling 85% of
waste. Europe is leading the way and since many manufactures involved in PV CYCLE do business
also in the U.S., there’s potential for a similar initiative here in North America.

RESOURCE
PV Cycle: http://www.pvcycle.org/

8http://www.realtor.org/rmodaily.nsf/0/1aab2c6905430c9f8625730c0058fd32?OpenDocument, accessed
January 2, 2009.

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Picking a Contractor

As with any construction project, best practices include asking these basic questions of a potential
contractor:
ƒ Do they have a business license?
ƒ Are they licensed for the work you want them to do (mechanical, electrical, structural, etc.)?
ƒ How long have they been in business?
ƒ How many solar electric systems have they installed?
ƒ Will they provide references?
ƒ Have they attended manufacturer, trade association, or other training on solar electric
installations?
In comparing bids, you should consider warranty service, installed system price (equipment plus
installation), system size, permit costs, and predicted energy output.
It’s a good idea to check the Washington Labor and Industries website to learn more about the listed
contractor, licensing status, violations, etc.
The North American Board of Certified Energy Practitioners (NABCEP) runs a quality credentialing
and certification program for renewable energy professionals. In order to be NABCEP certified, a
practitioner must meet installation experience requirements, sign a code of ethics and pass a four-
hour exam. Look for the NABCEP seal on contractors’ websites. More information about NABCEP and
a list of certified installers can be found at their web site.

RESOURCES
Labor and Industries: http://www.lni.wa.gov/TradesLicensing/Contractors/HireCon/
NABCEP: http://www.nabcep.org/
Seattle City Light’s Solar Page: www.seattle.gov/light/solar and select “Find Solar Contractors”

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Installation and Incentive Checklist: 9 Steps to Solar Power

† #1 System Selection
Contact contractors, schedule site evaluations, and choose your system design. Use the “Find
Solar Contractors” link at www.seattle.gov/light/solar to find installers that have installed at
least three PV systems in Seattle City Light’s service territory.

TIP
Installers typically charge $150–$300 for a site evaluation and often refund that cost
with the purchase of a system.

† #2 Interconnection Application
Contact Seattle City Light’s Conservation Help Line or visit our Solar Energy website for
downloadable forms and information about connecting your new PV system to the electrical
grid. Complete and submit these forms prior to installation.
Once you submit your applications, a City Light representative will make a visit to your site prior
to installation to mark the appropriate location for a production meter socket (socket to be
installed by your installer, meter to be installed by City Light).
The following forms are required:
ƒ Interconnection Application & Agreement, with a “one-line” electrical diagram of the
proposed system and an inverter “specification sheet” (most solar installers will
complete these forms for you).
ƒ Application for Electric Service—required to participate in state incentive program
(includes the installation of a production meter, $59 fee, check payable to Seattle
City Light).
City Light Electric Service Representatives at your local (North or South) Service Centers are
available to work with you or your installer to review your application submittals.

RESOURCES
Submit applications to Seattle City Light, Attn: Intake Desk, 1300 N. 97th Street,
Seattle, WA, 98103.
For questions contact Electric Service Representatives Candace Gruber at
(206) 684-0791, candace.gruber@seattle.gov (projects North of Denny), or
Dan Langdon at (206) 386-1678, dan.langdon@seattle.gov (for projects South of Denny).

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† #3 Electrical Permit
The person installing the system, typically your solar contractor, must obtain an electrical
permit (specifically an Electrical Permit Application: No Plan Review). Zoning, setback
requirements, roof height, and exposure may impact your installation. Contact DPD for land-use
and electrical permit information if you have questions about your particular property.

RESOURCES
Electrical Permit Application: No Plan Review:
http://www.seattle.gov/dpd/Publications/Forms/Over-the-Counter/default.asp
Department of Planning & Development, Applicant Services Center, 20th floor of
Seattle Municipal Tower, 700 Fifth Avenue, Seattle, WA, 98104, (206) 684-8850,
www.seattle.gov/dpd/asc.

NOTE
Seattle City Light customers residing outside of Seattle should contact their local building
department or the Washington Department of Labor and Industries for electrical permits.

† #4 Installation
Install your solar electric system, including your production meter socket. City Light should have
marked the ideal location for the production meter socket (for ease of meter reading). If you or
your contractor have any questions about the marked location, please call your Service
Representative (see Resources under Step 2).

† #5 Electrical Inspection
Once installation is complete, call the Department of Planning & Development (or your local
electrical permitting office if you are outside of Seattle) for an electrical inspection. New
construction requires both a cover and final inspection—existing structures require only a final
inspection.
After passing the electrical inspection, you must notify your City Light Service Representative
(same contact from Step 2). When City Light confirms your system was installed according to
plan and has passed inspection, your Interconnection Agreement will be signed and a copy will
be returned to you for your records.
Congratulations! Once your system passes its electrical inspection, you may begin generating
electricity. If you are not planning to apply for production incentives, this is your last step.

† #6 Production Meter
Once City Light confirms that your system passed inspection, a meter technician will be
scheduled to install your production meter.

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† #7 Washington State Certification

To be eligible for the production incentives, you must complete the Washington State
Department of Revenue’s (DOR) Renewable Energy System Cost Recovery Certification form
and mail or fax it to DOR as directed on the form. DOR will assign you a Tax Reporting Number
(if you do not already have one), sign the form, and return the form to you along with a cover
letter. Keep this form in a convenient location as you will need to submit a copy of it to City
Light the first time you apply for your incentive.

RESOURCE
DOR Renewable Energy System Cost Recovery Certification form, visit
www.seattle.gov/light/solar and click on “Install Solar” on left sidebar.

† #8 Apply for Federal Tax Credits

Individuals and businesses that install solar electric systems are eligible for a federal tax credit
of 30% of the system cost (the total of installation and materials). Individuals use Residential
Energy Credits IRS Form 5695 and businesses use the Investment Credit IRS Form 3468.
Updated forms can be found on the IRS website, www.irs.gov.

† #9 Annual Incentive Payments

To monitor your production and calculate your incentive, City Light will read your production
meter on the same schedule as your existing billing meter.
In July of each year, Seattle City Light will mail you a letter reporting the kilowatt-hours (kWh)
produced by your solar electric system during the previous 12 months and an Annual Incentive
Payment form. Annual production will be based on City Light’s most recent production meter
reading. For most customers, this reading will occur late May–July. The form will also document
the incentive payment rate for the equipment you have installed.
Customers will be asked to verify the kWh data and incentive payment by signing and returning
the form to City Light. By September 30, you will be notified if your incentive application has
been approved. Your incentive check will be mailed no later than December 15 of each year.
First time incentive payment applications must include copies of your DOR Certification form
and cover letter approving your renewable energy system.
As a renewable energy generator, you must maintain all records of energy production and
incentive payments received for a period of five years. City Light or DOR may review these
records with five working days notice.

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Additional Resources

For solar questions not answered by this guide please contact Seattle City Light’s Conservation Help
Line at (206) 684-3800 or by email at rescons.scl@seattle.gov.
If you want to do additional research here are some resources you may find useful:
ƒ U.S. Department of Energy Solar Energy Technologies Program—a consumer resource
covering solar basics, applications, and, research and development at the national level.
http://www.eere.energy.gov/solar/photovoltaics.html
ƒ Solar Washington—the local chapter of the American Solar Energy Society, providing events,
newsletter and links posted on the web.
http://www.solarwashington.org
ƒ Northwest Solar Center—a program and free education service of the WSU Cooperative
Extension Energy Program (206) 396-8446.
http://www.northwestsolarcenter.org

Solar Works in Seattle!

We hope you decide to join the many Seattle area residents who are taking advantage of a local
renewable resource to generate their own clean, green power.
Seattle City Light is a publicly owned utility dedicated to exceeding our customers' expectations in
producing and delivering low cost, reliable power in an environmentally responsible and safe way.
We are committed to delivering the best customer service experience of any utility in the nation.

Seattle City Light

700 Fifth Avenue, Suite 3200
P.O. Box 34023
Seattle, WA 98124-4023
Conservation Help Line: (206) 684-3800 August 2009

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