Building “green” can provide significant financial savings, as well as preserve the environment, and improve the health and productivity of the residents of a green built home. Elements of building green may include using renewable sources of energy; implementing energy-efficient practices; designing and operating buildings to use water efficiently; and choosing building materials that are recycled, less toxic, energy-efficient, biodegradable, and/or more durable.

Both the State and Federal governments, recognizing the value of building green, offer incentives and assistance to encourage this practice.  Washington State’s recently passed Net-Metering Law (described below), and the new IRS/Federal Solar Tax Credit are perfect examples of the considerable financial benefits to building using renewable energy technology, such as solar and geothermal. And several private organizations are actively researching and promoting the benefits of this approach. 

Life-cycle costs of green buildings are lower due to savings on energy costs, the revenue generated from renewable energy buy-back programs; and on such things as water consumption. Additional benefits and savings can come in the form of better health and greater productivity of occupants. While the upfront costs of building green have tended to be higher in the past, they are now dropping and, in many cases, are actually proving less expensive than those using conventional construction techniques. 

State of Washington Incentives & Programs

In the spring of 2005, the State of Washington broke ground with Senate Bills 5101 (a & b) and 5111 (a & b). The laws establishe a renewable energy "feed-in" production incentive, the first such application of this approach in a U.S. state. The first bill, SB 5101, is responsible for driving strong market demand for small renewable energy projects, especially solar photovoltaic ("PV") energy. Homes and businesses with solar PV and wind power systems would earn a credit of 15 cents per kWh of electricity generated by their renewable energy systems up to $2000 annually -- roughly tailored to the yearly market output of a typical 3.5 kW PV system.

In addition to the feed-in credit, the bill is progressive because it combines economic multipliers to increase the system owner's credit if the project's components are manufactured in Washington. This can raise the 15 cent per kWh credit up to as much as 54 cents and this rate would be available for a fixed 10 year period beginning July 1, 2005.

With the first bill taking care of the demand side of the equation, the second bill would take care of the supply side by nurturing new, high-tech manufacturing of renewable energy components. SB 5111 will provide tax breaks for renewable energy businesses that currently reside in the state or choose to relocate there. And the bill goes above that to offer higher tax breaks to companies that locate themselves in economically depressed areas.

Resources for Washington State Incentives

• 5/10/05 WA State Passes Progressive Renewable Energy Legislation
• WA State Dept. of Revenue Tax Incentive Special Notice
• Q&A: Washington State’s Net Metering Law
• “Appeal of 'green' houses grows with financial incentives” (Seattle P.I.)
• Washington Incentives for Renewable Energy
• Senate Bill 5101 (a & b)
• Senate Bill 5111 (a & b)