Washington solar incentives are some of the best in the country—but they won’t last forever. If you’ve been thinking about solar for your home, now is the time to act.
Rising electricity costs, changing net metering policies, and potential shifts in solar incentives mean homeowners who wait could miss out on thousands in savings.
Washington Solar Incentives
Reducing The Upfront Cost of Installing Solar for Your Home
Federal Solar Tax Credit
Homeowners can claim a 30% tax credit on the total cost of their solar energy system in the first tax filing season after installation.
This tax credit directly reduces what you owe in federal taxes, applying to both solar panels and battery storage systems.
- Total Solar + Battery Storage Cost: $35,000
- 30% Federal Tax Credit: $10,500
- Final Cost After Tax Credit: $24,500
You don’t lose out if your total federal tax liability is less than the full amount of your 30% tax credit. The IRS allows you to carry over the remaining balance to future tax years until you’ve claimed the full credit.
There is no limit on how many years you can carry it forward under the current policy, meaning you can continue applying this Washington solar incentive to future tax bills until the credit is fully utilized.
Net Energy Metering
Energy Production and Consumption: During the summer months and early fall, your solar panels usually generate more electricity than your home consumes. This excess energy is sent back to the utility grid.
Earning Credits: For the surplus energy contributed, you receive credits on your utility bill at the retail rate, effectively reducing future electricity costs.
Balancing Usage: During times when your solar system produces less energy—such as cloudy days or nighttime—you can utilize the credits you’ve accumulated to offset the cost of electricity drawn from the grid.
Key Features of Net Metering Program:
System Size Limit: Eligible renewable energy systems can be up to 100 kilowatts (kW) in capacity.
Annual Reset Date: Unused credits expire annually on March 31, so it’s beneficial to size your system to match your yearly energy needs closely.
Program Availability: Utilities are required to offer net metering until June 30, 2029, or until net metering systems reach 4% of the utility’s 1996 peak demand, whichever comes first.
Washington Sales Tax Exemption
Homeowners installing solar energy systems can skip the state sales tax—saving thousands of dollars upfront.
This incentive, part of the Clean Energy Transformation Act (SB 5116), is available through 2029 and applies to the entire installation cost—including panels, inverters, labor, permits, and electrical work. That means more savings from day one and a faster return on your investment.
Seattle Solar Incentives
Why 2025 Is The Best Year To Go Solar
- The 30% Federal Tax Credit is Secure—for Now: The 30% Investment Tax Credit (ITC) is still available through 2032, but tax policies shift with political tides. Waiting could mean missing out on incentives that make solar more affordable today.
- Tariffs Could Impact Pricing: Discussions about 25% tariffs on solar equipment from Canada, Mexico, and China could affect future costs. While no final decisions have been made, securing a proposal now means locking in today’s pricing—providing certainty in an unpredictable market.
- Solar Equipment Costs Could Rise: New or increased solar tariffs could drive up the price of solar panels, making 2025 one of the last opportunities to install at current low prices.
- Net Metering Benefits Could Be Under Threat: Some Washington utilities have reached their net metering limits, meaning homeowners who wait may receive lower credits for excess energy.
- Electric Rates Are Climbing: Utilities are introducing Time-of-Use pricing, which could make solar and battery storage even more valuable.
Low-Cost Solar Financing
We partner with trusted local lenders to offer zero-down, low-interest solar loans with no balloon payments. For a limited time, homeowners may qualify for 0% interest and no payments for 90 days through PSCCU.
