Washington Solar Incentive Programs

12 yr

Avg. payback

$950/yr

Avg. annual savings

None

State tax credit

retail

Net metering rate

Federal tax credit update: The 30% residential solar tax credit (Section 25D) ended for systems whose installation was completed after December 31, 2025, under Public Law 119-21. Systems whose installation was completed in 2025 can still claim it on a 2025 return. New 2026 installations do not qualify for homeowners who buy. What changed

Washington Solar Savings Estimator

System Size (kW)

System Cost ($)

Utility / Rate (¢/kWh)

Custom Rate (¢/kWh)

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Annual Savings

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Sales Tax Saved

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Est. Payback (yrs)

Estimate only. Assumes 4.2 peak sun hours/day (WA avg), 75% self-consumption, 25% export at full retail credit. Does not account for shading, orientation, battery storage, or rate changes. Consult a licensed installer for a site-specific quote.

Net Metering, RCW 80.60 Active

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Full retail-rate net metering. Washington law (RCW 80.60.030) credits customer-generators for excess kWh at the same rate they pay for consumption, meaning every kWh you push to the grid offsets a kWh of future usage at full retail value. This is stronger than states that credit only at avoided-cost or wholesale rates.

Statute	RCW 80.60.010 to 80.60.040
Credit Rate	Full retail (1:1 kWh netting, same rate as consumption)
Maximum System Size	100 kW AC per customer-generator
Program Cap	4% of each utility's 1996 peak demand (≥50% reserved for systems ≤ the half-demand threshold; first-come, first-served)
Program End Date	June 30, 2029, or when cap is reached, whichever comes first
Who Must Offer It	All IOUs, municipal utilities, and public utility districts (PUDs) in Washington
Credit Rollover	Unused credits carry forward month-to-month; expire March 31 each year (no cash payout)
Annual True-Up	Any remaining credits as of March 31 are forfeited, no cash compensation
Meter Aggregation	Allowed, one additional contiguous meter on the same or adjacent parcel (added 2019)
Multifamily	Building owner may install on a single designated meter; tenant credit distribution is owner's responsibility
Additional Fees	No standby, capacity, or interconnection fees unless utility demonstrates costs exceed benefits and wins regulatory approval

Source: RCW 80.60 (Washington State Legislature, app.leg.wa.gov), Tier 1.

Major Utilities

Puget Sound Energy (PSE)

Largest IOU in WA. Serves western WA including Seattle suburbs, Tacoma area, Olympia area.

Net metering at retail (~15¢/kWh, Tier 2 estimate); see pse.com for current Schedule 150 tariff

pse.com solar page

Pacific Power (PacifiCorp)

Serves eastern and central Washington including Yakima Valley and parts of the Columbia Basin.

Net metering at retail (Tier 2 estimate); verify current rate at pacificpower.net

pacificpower.net solar page

Seattle City Light (SCL)

Municipal utility serving Seattle. Among the lowest rates in the country due to hydropower mix.

Net metering at retail (~11¢/kWh, Tier 2 estimate); verify at seattle.gov/city-light

seattle.gov solar page

Public Utility Districts (PUDs)

Washington has 29 PUDs. Most serve rural areas and have some of the lowest rates in the nation due to Columbia River hydro generation.

Net metering required by RCW 80.60; individual rates vary, contact your PUD directly

Program cap awareness: While Washington's net metering program has not been reported as capped statewide, individual utilities track their own 4% threshold. If a utility closes its program, existing participants are grandfathered but new applicants may face alternative tariff terms. Check with your utility before signing a contract.

Sales Tax Exemption, RCW 82.08.962 Active Through 2029

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100% sales tax exemption for systems up to 100 kW AC. Washington waives both state (6.5%) and applicable local sales taxes on solar equipment and installation labor for qualifying residential and commercial systems. On a typical $22,000 residential install, that's roughly $1,900 to $2,500 in avoided sales tax, no rebate to wait for, just lower upfront cost.

Statute	RCW 82.08.962
Exemption Level (≤100 kW AC)	100%, state + local sales tax
What Is Covered	Solar equipment (panels, inverters, racking) + installation labor and services
Minimum System Size	1,000 watts AC (1 kW), essentially all residential systems qualify
Installation Window	Must commence no earlier than July 1, 2019 and complete by December 31, 2029
Statute Expiration	January 1, 2030, exemption sunsets unless renewed by legislature
How to Claim	Buyer provides seller an exemption certificate (DOR form); seller applies the exemption at point of sale
Contractor Requirements	Installer must have valid contractor registration, business ID, industrial insurance, and no wage/hour violation findings in past 24 months
Residential vs. Commercial	Both qualify; statute does not restrict to residential use

Source: RCW 82.08.962 (Washington State Legislature, app.leg.wa.gov), Tier 1.

DOR exemption certificate required. Ask your installer for the Washington DOR exemption certificate before the sale. The exemption cannot be claimed as a refund after the fact, it must be applied at the time of purchase. Verify your installer meets the contractor requirements; an unqualified contractor's transaction may not qualify.

Property Tax No Residential Exemption Found

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No enacted residential solar property tax exemption in Washington. The original solar property tax exemption (RCW 84.36.410) was repealed in 1980. The current renewable energy property tax exemption (RCW 84.36.680, enacted 2023) requires a minimum facility capacity of 10 megawatts, far beyond any residential installation.

RCW 84.36.410	Repealed 1980, no longer in effect
RCW 84.36.680	Exempts personal property used in renewable energy facilities with ≥10 MW nameplate capacity; expires January 1, 2028. Does not apply to residential solar.
Residential homeowners	No statutory exemption from property tax assessment increases attributable to solar installations
Practical effect	Solar may or may not increase your county assessed value, varies by assessor. Contact your county assessor's office for guidance.

Source: RCW 84.36 disposition table + RCW 84.36.680 (Washington State Legislature, app.leg.wa.gov), Tier 1. No residential property tax exemption found in Tier 1 research.

Practical note for homeowners: Even without a statutory exemption, some Washington county assessors may not increase assessed values significantly for residential solar, particularly in areas where solar is common and the market has already priced it in. This is assessor-by-assessor practice, not statutory protection. For certainty, contact your county assessor before installation.

State Income Tax No State Income Tax (For Most)

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Washington has no personal income tax, which means there is no state income tax credit for solar to offer or claim. Most Washington residents will pay $0 in state income tax, making the now-eliminated federal §25D credit particularly impactful since that was the primary tax-based incentive.

Current status	No state personal income tax for most residents
High-income note (2028)	Senate Bill 6346 enacted a 9.9% state income tax starting January 1, 2028, applying only to individuals with AGI above $1 million. Does not affect the typical solar homeowner.
Solar-specific income tax credit	None, no state income tax credit for solar exists or is needed for most residents
State-level incentive replacement	Washington relies on net metering + sales tax exemption rather than income tax credits

Source: Washington DOR (dor.wa.gov), Tier 1 confirmation of no personal income tax.

Federal Solar Investment Tax Credit (§25D) Eliminated After 12/31/2025

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The federal residential solar ITC has been eliminated. P.L. 119-21 (One Big Beautiful Bill), signed July 4, 2025, ended the §25D residential clean energy credit for solar systems whose installation was completed after December 31, 2025. Systems whose installation was completed by December 31, 2025 were still eligible for the 30% credit on that year's tax return.

Former credit	30% of system cost (§25D)
Eliminated by	P.L. 119-21, signed July 4, 2025
Effective for	Systems whose installation was completed after December 31, 2025 are not eligible
Washington impact	Washington residents had no state income tax credit to fall back on, so the federal elimination removes the largest single tax incentive for WA solar buyers. The sales tax exemption partially offsets this.
IRS reference	IRS.gov, Residential Clean Energy Credit

Sources & Methodology

This page uses a Tier 1 source standard: claims are verified only against primary government sources (state statutes, utility commission orders, IRS.gov). Tier 2 sources (industry sites, news articles) may point to information but cannot verify a claim on their own.

T1RCW Chapter 80.60, Net Metering of Electricity (Washington State Legislature)
T1RCW 82.08.962, Sales Tax Exemption, Solar Energy Systems (Washington State Legislature)
T1RCW Chapter 84.36 Disposition, Property Tax Exemptions (Washington State Legislature; RCW 84.36.410 confirmed repealed 1980)
T1RCW 84.36.680, Renewable Energy Property Tax Exemption (≥10 MW facilities)
T1Washington DOR, Income Tax (no personal income tax for most residents; SB 6346 high-income tax starting 2028)
T1IRS.gov, Residential Clean Energy Credit (§25D) (P.L. 119-21; eliminated after 12/31/2025)
T2ohmsnap.com, PSE net metering rate estimate (~15¢/kWh, full retail); T2 only. Verify current rates at pse.com.
T2energysage.com, pnwresidences.com, Background context on Washington solar market; Tier 2.

Last researched: October 2026. Incentive programs change, always verify with your utility and a licensed tax professional before making financial decisions.

Washington Quick Facts

Peak Sun Hours (avg) ~4.2 hrs/day
Net Metering Credit Full retail rate (1:1 kWh)
Sales Tax Exemption 100% (≤100 kW AC, thru 2029)
Property Tax Exemption None for residential
State Income Tax Credit N/A (no state income tax)
Federal ITC (§25D) Eliminated after 12/31/2025
WA UTC (utility questions) utc.wa.gov

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About this service: SolarPrograms.com is an independent site. We are not affiliated with or endorsed by any government agency, utility, or incentive program. By submitting, you agree that we may contact you by phone or email about your request and may share your details with up to three solar installers who serve your area, so they can contact you by phone or email about a quote. We may receive a referral fee from installers; it never changes the information on our pages. Consent is not a condition of any purchase. We do not sell your information to data brokers. You can opt out at any time through our contact page or by email at [email protected]. See our Terms and Privacy Policy.

Incentives and rates change often and depend on your utility, location and tax situation. Confirm the details that apply to you with your utility and a licensed tax professional before you sign a contract.