Washington provides an excellent combination of solar incentives, including sales tax exemptions and net metering programs, to make going solar more affordable and accessible to its residents. In addition to breaking down the Evergreen State’s solar incentives applications, we researched the best solar companies in the state to help streamline going solar for you.

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How Much Can You Save With the Federal Solar Tax Credit?

Washington homeowners may also use the federal solar tax credit, or the solar Investment Tax Credit (ITC). This credit lets you receive a deduction on your federal income taxes equal to 30% of your solar panel installation cost. The policy was introduced as part of the Energy Policy Act of 2005 and was initially set to expire in 2007. However, Congress has extended the federal tax credit multiple times, giving homeowners more time to take advantage of the deduction. Read our comprehensive coverage of the federal solar tax credit for more information.

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Is Net Metering Required in Washington?

Washington also features excellent net metering laws. The net metering process, also called interconnection or net-energy metering, lets you purchase electricity from your local electricity provider when you need it and send renewable energy generated by your solar panels back to the power grid when you don’t need it. 

Since you can spin forward your electricity meter when you send energy back into the grid, you can reduce your electricity bill by that amount based on a credit the electric company provides. A net metering program allows you to lower or erase your electric bill (depending on your usage and system size) and generate clean energy for you and your neighbors.

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How Much Do Solar Panels Cost in Washington?

A solar panel system costs around $17,640* for an average 6-kW system (the most common system size). However, this price is before applying any solar incentives. Most solar providers price their systems based on wattage, with $3–$4 per watt being the average price. After the 30% federal tax credit, your system costs would reduce to $12,348.

Your total cost and return on investment (ROI) depend on your chosen payment method. We’ve broken down each solar financing option to help you choose the best payment method.

• Cash purchase: An up-front payment offers the best ROI and long-term savings. Paying for the system outright eliminates interest rates, credit checks, and loan fees. You also qualify for solar incentives and credits since you own the system.
• Solar loan: A solar loan is the second-best payment option. This method allows you to own your solar system without paying significant up-front costs. Instead, you make monthly payments over a fixed period. You can also use solar incentives because you own the system. However, you’ll pay more for the system due to interest rates.
• Solar lease: A solar lease lets you rent the system rather than buy it. This payment option is best for homeowners who don’t qualify for loans or can’t afford a large up-front cash payment. However, a solar lease disqualifies you from incentives since the solar company owns the system. In addition, because the system is rented, it doesn’t increase your home value like a cash purchase or loan.
• Power purchase agreement (PPA): A PPA involves only paying for your monthly energy use. Think of it as if you’re still paying your regular electricity bill for solar energy instead of grid-tied power. Your contract will outline your expected rate, which will be lower than the utility rate of electricity. Many solar companies also include system maintenance and repairs with PPAs, but you won’t own the system and are disqualified from solar rebates or other incentives.

*Cost figures are based on a 2023 report from EcoWatch.

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Is Going Solar Worth it?

Installing solar panels is a significant investment but can return big savings. Based on our research, Washington makes solar panels worth it due to its net metering laws and tax incentives. These perks help you receive a reasonable solar payback period, which is the time at which when your solar panels start to pay for themselves. Washington’s solar payback period aligns with the national average of six to 10 years. In addition to ROI, solar panels increase your home’s value by an average of $15,000.

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Our Conclusion

Washington is an excellent state for renewable energy systems, and it offers beneficial solar incentives to make solar panel installation more affordable for all residents of Seattle, the Puget Sound, and beyond. Our guide covered the state’s most significant incentives, but there are smaller city- or municipality-specific incentives worth exploring. We recommend checking DSIRE for more information.

Once you feel ready, we recommend reading our guide on the best solar panel brands to narrow your choices. Our tool below connects you with reputable solar installers in Washington to jumpstart the quote process for you.

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FAQ About Solar Tax Incentives in Washington

Can you sell solar power back to the grid in Washington?

If your system is less than 100 kW, you can enroll in Washington’s net metering program and receive a 1-to-1 credit on your electric bill for any excess power that goes back to the grid. These credits help reduce your future energy bill. 

How long do solar panels last?

Solar panels last around 25 years as long as they are high-quality monocrystalline solar panels. Your solar array’s average life span and maintenance requirements depend on the type of solar panels you install. 

Will net metering go away in Washington state?

Washington’s net metering programs are planned to last until June 30, 2029. However, state lawmakers could extend this time frame. 

How does the federal solar tax credit work if I don’t owe taxes?

You do not get a refund if you have no tax liability for the year your system goes into service. However, if you paid taxes through withholding or quarterly estimated filings, the ITC could still be applied, and your prepayments may be refunded.

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Our Rating Methodology

We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:

• Solar equipment, installation, and services (25%)
• Warranty and performance guarantees (25%)
• Brand reputation and certifications (15%)
• Financing options (15%)
• Experience (10%)
• Availability (10%)

Total scores are divided by 20 for a final 5-point rating scale.

To share feedback or ask a question about this article, send a note to our Reviews team at [email protected].