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Washington Solar Incentives, Cost & Net Metering (2026)

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Written by Aditya Patil · Last updated 2026-09-24

Going solar in Washington state offers solid returns thanks to a 100% sales tax exemption and strong 1:1 net metering policies that are still active for most major utilities. While electricity rates are slightly below the national average, the combination of incentives and favorable export rules makes it an attractive investment.

$114

Avg. monthly bill

14.91¢/kWh

Avg. rate

~$3.30/W

Avg. cost per watt

National Avg. Estimate

100%

Sales tax exemption

Equipment & labor

Cost of solar in Washington

For a typical Washington home using 9,140 kWh per year, you'd need roughly a 8.71 kW solar system to offset your electricity usage. Assuming an installed cost of around $3.30 per watt, your gross cost would be approximately $28,757.

Because Washington has no state income tax, there are no state tax credits. However, the 100% sales tax exemption provides significant upfront savings. Since the federal residential clean energy credit (§25D) doesn't apply to systems completed after 2025-12-31, the 2026 net cash/loan cost remains $28,757.

Solar only, no battery

With 1:1 net metering, the grid acts as your battery, giving full retail credit for midday exports.

$1,363 / yr savings

18-year payback

Solar + battery

Provides backup power. Savings remain similar due to 1:1 net metering, but VPP payments can add cash value.

$1,363 / yr savings

18-year payback (excl. battery cost)

Net metering rules

Washington state law (RCW 80.60) requires utilities to offer net metering at the full retail rate until June 30, 2029, or until a utility's cumulative net metered capacity reaches 4% of its 1996 peak demand.

Many large utilities in the state—including Puget Sound Energy (PSE) and Snohomish PUD—have already exceeded this 4% threshold. Fortunately, they are continuing to offer 1:1 retail net metering to new customers until the Utilities and Transportation Commission (UTC) approves successor tariffs. The state is currently conducting a Value of Solar and Storage (VOSS) study expected to conclude in late 2026 to shape these future policies.

Note on credit expiration: By law, any banked excess generation credits expire on March 31 of each year. Your utility is not required to compensate you for the remaining balance, so it's important not to dramatically oversize your system.

Incentives & rebates

The highlight of Washington's solar incentives is the comprehensive sales tax exemption, saving you hundreds or thousands of dollars on the total installed price.

ProgramAmountStatus
Washington State Solar Sales Tax Exemption100% sales and use tax exemption for solar energy systems 100 kW or less. (Systems between 101 kW and 500 kW are eligible for a 50% exemption).open

Batteries & VPP programs

While 1:1 net metering makes home batteries optional for purely financial savings, they provide critical resilience during winter power outages. Additionally, utilities are launching Virtual Power Plant (VPP) programs that pay you for using your battery.

PSE Flex Batteries

Puget Sound Energy's Virtual Power Plant (VPP) program for residential customers with eligible battery systems (e.g., Tesla Powerwall, FranklinWH). Participants earn a one-time enrollment incentive of up to $1,000 per battery (or $75/kWh) and an annual participation incentive of up to $500 per battery for allowing PSE to draw small amounts of energy during high-demand 'Flex Events'.

Top utilities

UtilityResidential rateCustomers
Puget Sound Energy Inc14.63¢/kWh1,091,599
City of Seattle - (WA)14.09¢/kWh459,964
PUD No 1 of Snohomish County11.51¢/kWh346,532

Estimate your own numbers

The numbers above are for a household at Washington's average usage. Use the solar calculator with your own usage and any quote you've received.

FAQ

Does Washington have 1:1 net metering?

Yes, Washington law requires utilities to offer 1:1 retail net metering until June 2029 or until they hit a 4% capacity cap. Even though major utilities like Puget Sound Energy (PSE) and Snohomish PUD have reached this cap, they are currently continuing to offer 1:1 retail net metering for new customers until a successor tariff is approved by the UTC (expected late 2026 or beyond).

What solar incentives are available in Washington state?

Washington offers a 100% sales and use tax exemption for residential solar energy systems (100 kW or less). This covers both equipment and labor, avoiding the standard state and local sales taxes. There is no state-level income tax, so there is no state tax credit, but you still benefit from avoiding sales tax.

Are solar batteries worth it in Washington?

Financially, 1:1 net metering means the grid acts as a free battery for your excess solar, making physical batteries less critical for simple bill savings. However, if you are a Puget Sound Energy customer, you can join the PSE Flex VPP program, earning up to $1,000 upfront and $500 annually per battery for allowing PSE to draw power during peak events. Batteries also provide backup power during winter storms.

Data sources

Last updated 2026-09-24

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Written by Aditya Patil