Washington Solar Incentives 2026: Complete Guide

Washington offers strong state-level solar incentives — but the landscape changed in 2025. Here's exactly what's available now and how to maximize your savings.

The Big Picture: What Changed in 2025

The federal 30% residential solar tax credit (Section 25D) expired on December 31, 2025. The One Big Beautiful Bill Act eliminated it for homeowners.

But there's a workaround: The commercial solar credit (Section 48E) remains active through 2027. Solar installers using leases or Power Purchase Agreements (PPAs) can pass this 30% savings to homeowners.

Bottom line: You can still get ~30% off solar through a lease/PPA, but not through a direct purchase tax credit.

Washington State Incentives

Sales Tax Exemption

100% sales tax exemption on solar equipment and installation.

| What's Exempt | Savings | |---------------|---------| | Solar panels | ~10% of equipment cost | | Inverters | ~10% of equipment cost | | Installation labor | ~10% of labor cost | | Battery storage | ~10% of equipment cost |

On a $25,000 system, that's $2,500+ in savings just from avoiding sales tax.

How to claim: Automatic — your installer handles the exemption. No paperwork required.

Net Metering

Washington requires utilities to offer net metering for systems up to 100 kW.

| Utility | Net Metering Rate | Rollover | |---------|-------------------|----------| | Puget Sound Energy | Full retail rate | 12 months | | Seattle City Light | Full retail rate | 12 months | | Tacoma Power | Full retail rate | 12 months | | Avista | Full retail rate | 12 months | | Clark Public Utilities | Full retail rate | 12 months |

What this means: Every kWh you send to the grid earns you a credit at the same rate you pay for power. Credits roll over month-to-month for a year. Excess is paid out annually (usually at a lower avoided-cost rate).

Utility Rebates and Programs

Puget Sound Energy (PSE)

| Program | Amount | Eligibility | |---------|--------|-------------| | Solar rebate | $0 (ended 2024) | N/A | | Battery rebate | Up to $2,500 | PSE customers with solar | | Time-of-use rates | Save 15-20% | Shift usage to off-peak |

PSE's solar rebate program ended, but battery incentives remain. Their time-of-use rates benefit solar owners who can shift consumption.

Seattle City Light

| Program | Amount | Eligibility | |---------|--------|-------------| | Net metering | Full retail credit | All residential | | Low-income solar | Up to $10,000 | Income-qualified |

Seattle City Light has some of the cheapest electricity in the country ($0.10-0.12/kWh), which makes solar payback longer. But net metering is straightforward.

Tacoma Power

| Program | Amount | Eligibility | |---------|--------|-------------| | Solar rebate | $500 one-time | Tacoma Power customers | | Net metering | Full retail | Systems up to 100 kW |

One of the few utilities still offering a direct rebate.

Clark Public Utilities

| Program | Amount | Eligibility | |---------|--------|-------------| | Net metering | Full retail | All residential | | EV + Solar bundle | Varies | Combined installs |

Check current offerings — they occasionally run promotional programs.

The Lease/PPA Path to 30% Savings

Since the residential tax credit expired, here's how to still capture the 30% benefit:

How It Works

Installer owns the system (lease) or sells you power (PPA)
Installer claims Section 48E commercial credit (30%)
Savings passed to you through lower lease/PPA payments

Lease vs. PPA

| Option | You Pay | You Own? | Best For | |--------|---------|----------|----------| | Lease | Fixed monthly payment | No (can buy later) | Predictable costs | | PPA | Per-kWh rate | No (can buy later) | High energy users | | Purchase | Full upfront | Yes | Best long-term ROI |

Lease/PPA pros: No upfront cost, 30% savings captured, maintenance included.

Lease/PPA cons: You don't own it, total cost over 20 years is higher than buying.

Top Lease/PPA Providers in Washington

Sunrun — Largest national player
SunPower — Premium panels, higher cost
Tesla — Competitive pricing, solar + Powerwall bundles

Get quotes from 2-3 providers and compare the $/kWh rate.

Income-Qualified Programs

Washington Low-Income Solar Program

Administered by utilities and community organizations:

| Program | Benefit | Who Qualifies | |---------|---------|---------------| | Seattle City Light Low-Income | Up to $10,000 | Under 80% AMI | | Community Solar | Discounted rates | Income-qualified | | Solarize campaigns | Group pricing | Anyone (extra discounts for low-income) |

Check with your utility for current offerings.

Property Tax Exemption

Washington does not tax the added value of solar installations on your property.

If solar adds $20,000 to your home value, you won't pay extra property taxes on that amount. This is automatic — no application needed.

2026 Incentive Summary

| Incentive | Value | Status | |-----------|-------|--------| | Federal tax credit (purchase) | 0% | Expired Dec 2025 | | Federal credit (lease/PPA) | ~30% | Active through 2027 | | WA sales tax exemption | ~10% | Active | | Net metering | Full retail | Active | | Utility rebates | $0-$2,500 | Varies | | Property tax exemption | 100% | Active |

Frequently Asked Questions

Is solar worth it in Washington with so much rain?

Yes. Washington gets 60-70% of the solar production of Arizona. Panels work on cloudy days (just less efficiently). A well-designed system still pays back in 8-12 years.

How much does solar cost in Washington?

$2.50-$3.50 per watt installed, or $15,000-$25,000 for a typical home system (6-8 kW).

With the sales tax exemption and lease/PPA options, your effective cost is 30-40% lower.

Do I need batteries with solar in Washington?

Not required, but helpful for:

Power outages (common in winter storms)
Time-of-use rate optimization
Backup if net metering policies change

Battery costs: $10,000-$15,000 for a Tesla Powerwall or similar.

Can I install solar myself in Washington?

Technically yes, but:

You won't qualify for utility net metering without a licensed installer
Lease/PPA (and their 30% savings) require professional installation
Permitting is complex

DIY is rarely worth the hassle or lost incentives.

How do I get started?

Get 3 quotes from different installers (EnergySage is good for this)
Compare lease/PPA vs. purchase — run the 20-year numbers
Check utility programs for current rebates
Verify net metering terms with your utility

Quick Reference

| Question | Answer | |----------|--------| | Best incentive | Sales tax exemption (~10% savings) | | Can I get 30% off? | Yes, through lease/PPA | | Is net metering available? | Yes, full retail rate | | Average system cost | $15,000-$25,000 | | Payback period | 8-12 years |