Renewable Energy Cost Recovery Incentive Payment

Last updated: August 24, 2020

Program Overview

Implementing Sector:State
Category:Financial Incentive
Incentive Type:Feed-in Tariff
Web Site:
Funding Source:Utilities pay incentives and earn a tax credit equal to the cost of those payments
Start Date:08/31/2006
Expiration Date:06/30/2020
Eligible Renewable/Other Technologies:Solar Thermal Electric, Solar Photovoltaics, Wind (All), Wind (Small), Anaerobic Digestion
Incentive Amount:FY 2020: $0.02/kWh - $0.12/kWh
Maximum Incentive:Residential: $5,000/year Commercial: $25,000/year Community Solar: $5,000/year per participant
Duration:Max 8 years.
Ownership of Renewable Energy Credits:Customer-Generator


Name:RCW 82.16.110 et seq.
Name:WAC 458-20-273
Name:WAC 458-20-273 Emergency Rules


Renewable Energy Cost Recovery Incentive Payment

Note: Some utilities have reached their cap for incentive allocations under the Renewable Energy Cost Recovery Incentive Payment program. Some of these utilities have reduced per-customer incentive amounts in response, while others have closed the program to new applicants. Interested customers should check with their electric utility on the availability and level of incentive payments.

In May 2005, Washington enacted Senate Bill 5101, establishing production incentives for individuals, businesses, and local governments that generate electricity from solar power, wind power, or anaerobic digesters. The incentive was amended by Senate Bill 6658 in June 2010. The incentive amount paid to the producer varies by the use case for the system and the fiscal year in which the system is installed. 

Ownership of the renewable-energy credits (RECs) associated with generation remains with the customer-generator and does not transfer to the state or utility.

The state's utilities will pay the incentives and earn a tax credit equal to the cost of those payments. 

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