Washington State Solar Incentives & Rebates 2026

$0 in sales tax. That’s right—Washington exempts solar equipment and installation from sales tax, saving you 6.5–10.1% upfront. The 30% federal solar tax credit expired in 2025, but if you lease your system or enter a power purchase agreement (PPA), the solar company can still claim up to 30% under Section 48E through 2027 and pass those savings to you. Combine this with utility rebates up to $5,000, and a $20,000 system could still cost you less than $10,000.

Here’s how PSE, Seattle City Light, and Snohomish PUD customers can maximize savings in 2026.

Why Go Solar in Washington?

• High electricity rates: Washington’s average rate is $0.12/kWh, but Puget Sound Energy (PSE) and other utilities are raising rates.
• Long daylight hours in summer: Even with rain, Washington gets enough sunlight for solar to pay off.
• Strong incentives: Washington offers sales tax exemptions, net metering, and utility rebates—some of the best in the country.

Washington Solar Incentives (2026)

Washington State Sales Tax Exemption

• 100% sales tax exemption on solar equipment and installation.
• Saves 6.5–10.1% (depending on local taxes).
• No cap—applies to residential and commercial systems.

Federal Solar Incentive (Expired for Purchases)

• The 30% federal solar tax credit expired in 2025. However, if you lease your system or enter a power purchase agreement (PPA), the solar company can still claim up to 30% under Section 48E through 2027 and pass those savings to you through lower monthly payments.
• Example: A $20,000 system may still qualify for savings equivalent to 30% if leased or under a PPA.**

Net Metering: Get Credit for Excess Solar Power

• PSE, Seattle City Light, Snohomish PUD, and most WA utilities offer 1:1 net metering.
• For every kWh your solar panels send to the grid, you get a 1 kWh credit on your bill.
• No annual true-up—credits roll over indefinitely.

Net Metering by Utility (2026)

| Utility | Net Metering Policy | Credit Value | Notes | |---------|---------------------|--------------|-------| | Puget Sound Energy (PSE) | 1:1 net metering | Retail rate | No annual true-up | | Seattle City Light | 1:1 net metering | Retail rate | No annual true-up | | Snohomish PUD | 1:1 net metering | Retail rate | No annual true-up | | Tacoma Public Utilities | 1:1 net metering | Retail rate | No annual true-up |

Utility-Specific Solar Rebates (2026)

Puget Sound Energy (PSE) Solar Rebates

• $0.50/watt for solar installations (up to $5,000).
• $200/kWh for battery storage (up to $10,000).
• Income-qualified households: Up to $2,000 extra for solar, $1,000 extra for batteries.

Snohomish County PUD Solar Rebates

• $300/kW for solar (up to $3,000).
• $200/kWh for battery storage (up to $5,000).
• Income-qualified households: Up to $1,500 extra for solar.

Seattle City Light Solar Incentives

• $0.16/kWh produced for 10 years (up to $5,000).
• No battery rebates (as of 2026).

Washington State Production Incentive (2026)

• $0.15–$0.54/kWh produced (varies by system size and utility).
• Paid annually for 8 years.
• Example: A 6 kW system producing 6,000 kWh/year could earn $900–$3,240/year for 8 years.

| System Size | Incentive Rate (2026) | Annual Payment (Est.) | |-------------|-----------------------|-----------------------| | 10 kW | $0.54/kWh | $3,240/year | | 10–100 kW | $0.36/kWh | $2,160/year | | > 100 kW | $0.15/kWh | $900/year |

Note: This program is funded by a limited pool—apply early!

How Much Can You Save with Solar in Washington?

Upfront Cost After Incentives

| System Cost | Federal solar incentive (expired, but leasing/PPA may still offer savings) | WA Sales Tax Savings | PSE Rebate | Net Cost | |-------------|----------------------------------------------------------------|----------------------|------------|----------| | $20,000 | Varies (leasing/PPA may still offer savings) | $1,300 | $3,000 | $15,700–$18,700 |

Monthly & Annual Savings

• Average WA home uses 900–1,100 kWh/month.
• 6 kW solar system offsets 70–90% of usage.
• PSE’s average rate (2026): $0.14/kWh
• Estimated monthly savings: $100–$180
• Annual savings: $1,200–$2,160

Payback Period

| Net Cost | Annual Savings | Payback Period | |----------|----------------|----------------| | $10,000 | $1,800 | 5–6 years | | $15,000 | $2,000 | 7–8 years |

• Solar panels last 25+ years, so you’ll enjoy 17–20 years of free electricity after payback.

Real-World Example: PSE Customer in Bellevue

System: 7 kW solar, $22,000 installed Incentives:

• Federal solar incentive: Varies (leasing/PPA may still offer savings)
• WA sales tax exemption: $1,430
• PSE solar rebate: $3,500
• PSE battery rebate: $4,000 (for Tesla Powerwall 3) Net cost: Varies (leasing/PPA may reduce costs significantly) Annual savings: $2,100 Payback period: 3.1 years

Should You Add a Battery?

• Cost: $10,000–$15,000 (before incentives).
• Incentives: The 30% federal tax credit for batteries expired in 2025, but state and utility rebates ($200–$250/kWh) may still apply.
• Payback: 7–10 years (depends on outage frequency and time-of-use rates).
• Best for: Homeowners who want backup power during outages or time-of-use savings.

Bottom Line

• Washington has some of the best solar incentives in the U.S.—sales tax exemption, net metering, and utility rebates make solar affordable.
• Most homeowners save $1,200–$2,400/year on electricity bills.
• Payback period: 5–8 years (less for income-qualified households).
• After payback, enjoy 17–20 years of free, clean energy.
• PSE, Seattle City Light, and Snohomish PUD customers: Apply for rebates early—funding is limited!

Ready to go solar? Get a free quote and start saving today!