Can I still get a federal tax credit for solar in Washington in 2026?

No. The Residential Clean Energy Credit (Section 25D) was repealed on July 4, 2025, and expired for systems placed in service after December 31, 2025. The only federal benefit available in 2026 is through third-party-owned leases under Section 48E, but construction must begin before July 4, 2026. Most homeowners should focus on state and local incentives instead.

Does Washington have net metering?

Yes. Washington has a statewide net metering law (RCW 80.60) that requires all electric utilities (investor-owned, municipal, and PUD) to offer 1:1 retail-rate net metering to residential solar customers, subject to a per-utility aggregate cap. Specific reconciliation rules differ slightly between utilities, but the headline 1:1 retail-rate credit applies statewide.

What is the property tax exemption worth?

Washington exempts the full value of qualifying solar equipment (residential systems up to 100 kW AC) from property taxes. For a $26,500 system, this can save $200 to $400 per year depending on your local tax rate, adding up to $5,000 to $10,000 over 25 years.

How much does a typical solar system cost in Washington?

The average 6 kW residential system costs $26,500 before incentives. After the state sales tax exemption is applied at the point of sale, the effective upfront cost is typically $24,500 to $25,000, with additional ongoing savings from the property tax exemption. Washington's state production incentive program closed in 2020, so there is no longer a standing utility per-watt rebate to subtract on top of that.

What is the payback period for solar in Washington?

With the federal tax credit and state production incentive both expired, most Washington homeowners now see payback in 11 to 13 years, depending on utility, electricity rates, and system size. After payback, systems produce essentially free electricity for the remaining 12+ years of their warranted life.

Which Washington cities are best for solar?

Seattle, Spokane, Tacoma, Olympia, and Bellingham all have good solar potential. Spokane and eastern Washington generally see slightly more sun than the Puget Sound region, but modern panels work well across the state.

Washington Solar Incentives, Costs & Backup Power (2026)

Washington Solar in 2026: The Honest Picture

Washington homeowners face a different solar landscape in 2026 than they did a year ago. The federal Residential Clean Energy Credit, which once offered a 30% tax credit (a dollar-for-dollar reduction in federal income tax owed, not a deduction from taxable income), expired at the end of 2025. That means the federal subsidy that made solar affordable for millions of Americans is no longer available for most new installations.

However, Washington state has stepped in with meaningful incentives of its own. A 100% property tax exemption on solar equipment (for systems up to 100 kW AC) and a 100% sales tax exemption on residential PV equipment and labor make a real difference. Washington’s statewide net metering law (RCW 80.60) requires all electric utilities to credit homeowners for excess power sent back to the grid at the full retail rate. Note that Washington’s state production incentive program, which used to pay a per-kWh adder on top of net metering, expired in 2020 and is no longer accepting new applications, so any rebate or incentive claims tied to that program (often quoted as “$1.50 per watt” or similar) are out of date.

The result: solar is still financially viable in Washington, but the math is tighter than it was. Payback periods have stretched from 7 to 8 years to 11 to 13 years now that both the federal credit and the state production incentive are gone. Lifetime savings are still substantial, but they require a longer time horizon and a commitment to staying in your home.

This guide walks through current costs, realistic savings scenarios, available incentives, and what to look for in an installer.

Average Solar System Cost in Washington (2026)

A typical 6 kilowatt (kW) residential solar system in Washington costs approximately $26,500 before incentives. This breaks down as follows:

Equipment (panels, inverter, racking, wiring): $13,000 to $15,000
Labor and installation: $8,000 to $10,000
Permitting, inspection, and interconnection: $2,500 to $3,500
Monitoring and warranty: $1,500 to $2,000

System size varies by household. A home using 10,000 to 12,000 kWh per year typically needs a 6 to 7 kW system. Homes in eastern Washington (Spokane, Yakima) may size slightly smaller due to higher solar irradiance; homes in the Puget Sound region may size slightly larger due to cloudier conditions.

After applying Washington’s state sales tax exemption (baked into the installed price) and the property tax exemption (ongoing), the effective cost drops to roughly $24,500 to $25,000 upfront, with additional property tax savings spread over the system’s life. With the state production incentive program closed since 2020, there is no standing utility-paid per-watt rebate to subtract on top of that.

For detailed cost benchmarks in your area, consult the EnergySage state cost database.

Real Washington Homeowner Savings (Sample Scenarios)

Savings depend heavily on your utility, electricity rates, and local solar irradiance. Here are four realistic scenarios:

Seattle (Seattle City Light, 10,500 kWh/year usage)

System size: 6.5 kW
System cost after sales tax exemption: $25,000
Year 1 electricity production: 7,200 kWh
Year 1 savings: $1,080 (at $0.15/kWh average rate)
25-year lifetime savings: $29,000
Payback period: 12 years

Spokane (Avista Utilities, 11,000 kWh/year usage)

System size: 6 kW
System cost after sales tax exemption: $24,500
Year 1 electricity production: 7,800 kWh (higher irradiance)
Year 1 savings: $1,170 (at $0.15/kWh average rate)
25-year lifetime savings: $32,500
Payback period: 11 years

Tacoma (Tacoma Power, 9,500 kWh/year usage)

System size: 6 kW
System cost after sales tax exemption: $24,500
Year 1 electricity production: 6,900 kWh
Year 1 savings: $1,035 (at $0.15/kWh average rate)
25-year lifetime savings: $27,000
Payback period: 12 years

Olympia (Puget Sound Energy, 8,500 kWh/year usage)

System size: 5.5 kW
System cost after sales tax exemption: $22,500
Year 1 electricity production: 6,200 kWh
Year 1 savings: $930 (at $0.15/kWh average rate)
25-year lifetime savings: $24,000
Payback period: 13 years

These scenarios assume 2.5% annual electricity rate increases and no major system repairs. Actual results vary based on roof orientation, shading, equipment efficiency, and local utility rate changes.

Washington Solar Incentives Still Available in 2026

Property Tax Exemption

Washington exempts the full assessed value of solar equipment from property taxes. This is one of the strongest state-level incentives in the nation. For a $26,500 system, the exemption saves approximately $200 to $400 per year depending on your county’s tax rate. Over 25 years, this adds $5,000 to $10,000 in value.

The exemption applies to both owned and leased systems and requires no application. It is automatic upon system installation and property tax assessment.

Sales Tax Exemption

Washington exempts solar equipment (panels, inverters, racking, wiring, and labor) from the state 6.5% sales tax and local sales taxes. For a $26,500 system, this saves roughly $1,700 to $2,000 immediately.

Like the property tax exemption, this requires no separate application. Your installer should apply it at the point of sale.

Net Metering

Washington state law (RCW 80.60) requires all electric utilities, including investor-owned utilities (PSE, Avista, Pacific Power), public utility districts (Snohomish County PUD, others), and municipal utilities (Seattle City Light, Tacoma Power, others), to offer 1:1 retail-rate net metering to residential solar customers. Every kilowatt-hour you export to the grid is worth the same as every kilowatt-hour you consume from it. Annual reconciliation rules and per-utility aggregate caps vary, so confirm specifics with your utility before installing.

Net metering is essential for maximizing solar savings. Without it, excess production would be either lost or credited at a much lower wholesale rate.

Utility Rebates (Largely Expired)

Washington’s state-level Renewable Energy System Incentive Program, which provided the per-kWh production payments that translated into the well-known “$0.50 to $1.50 per watt” utility rebate quotes, expired in 2020 and is no longer accepting new applications. PSE, Seattle City Light, and Snohomish County PUD do not run standing residential solar rebate programs in 2026. Older guides citing PSE or Seattle City Light rebates of $1.50 per watt are out of date. The dollar incentives that remain are the sales tax exemption, the property tax exemption, retail-rate net metering, and (for income-qualified households) the Washington Clean Energy Fund.

Washington Clean Energy Fund

Washington’s Clean Energy Fund provides grants and rebates for low-income households installing solar. Eligible households can receive up to $2,000 in rebates. Income limits and application procedures vary by program administrator. Check the DSIRE database for current programs in your area.

Federal Section 48E (Third-Party Leases Only)

The only federal solar benefit available in 2026 is the Investment Tax Credit (Section 48E) for third-party-owned systems (leases and power purchase agreements). However, construction must begin before July 4, 2026. If you are considering a lease, confirm with your provider that construction can start before that deadline. For details, see the IRS Section 25D guidance page.

Is Solar Worth It in Washington Without the Federal Credit?

Yes, but with caveats.

Without the federal 30% tax credit, and with Washington’s state production incentive program also closed since 2020, payback periods have extended from 7 to 8 years to 11 to 13 years in most of Washington. This means you need to stay in your home for at least 12 years to break even financially. If you plan to move within 8 years, solar may not make sense unless you can transfer the system or sell the home with it installed.

However, if you plan to stay 13+ years, solar still delivers respectable returns. A $26,500 system that pays back in 12 years will produce 13+ years of essentially free electricity afterward, totaling roughly $27,000 to $32,000 in lifetime savings depending on rate increases. That is a modest but real return on investment with zero market risk.

Washington’s remaining state incentives (property tax exemption, sales tax exemption, and statewide retail-rate net metering under RCW 80.60) are still meaningful. The key is choosing the right system size, getting multiple quotes, and verifying your utility’s specific net metering tariff before signing a contract.

Top Cities for Solar in Washington

Spokane: Eastern Washington’s largest city receives 4.8 kWh/m2/day of solar irradiance, among the best in the state. Avista Utilities serves the area with net metering available. Payback periods average 9 to 10 years.
Seattle: The state’s largest city has moderate solar potential (4.0 kWh/m2/day) and is served by Seattle City Light, a municipal utility offering retail-rate net metering. Solid sales tax and property tax exemptions support solar adoption even without standing utility rebates.
Tacoma: Served by Tacoma Power, the municipal utility, with statewide retail-rate net metering. Solar irradiance is similar to Seattle (4.1 kWh/m2/day). Growing solar market with competitive installer pricing.
Bellingham: Northern Washington city with 3.9 kWh/m2/day irradiance. Served by Puget Sound Energy. Smaller installer market but strong state incentives apply.
Olympia: State capital with 4.0 kWh/m2/day irradiance. Puget Sound Energy service territory. Good solar potential and state incentive access.
Yakima: Central Washington city with 4.7 kWh/m2/day irradiance, among the sunniest in the state. Served by Pacific Power (not PSE) in the City of Yakima, plus surrounding PUDs in parts of Yakima County. Strong solar economics.

For detailed solar resource data by location, consult the NREL solar resource maps.

What to Look for in a Washington Solar Installer

License and Insurance: Verify the installer holds a Washington State electrical contractor license and that the on-site electricians hold the appropriate L&I-issued electrician certifications. Confirm general liability and workers’ compensation insurance, and check the Washington Department of Labor and Industries (L&I) contractor and electrician license databases. (Note: EVITP is a national electric-vehicle infrastructure training program, not a Washington electrician license, so an installer citing only an “EVITP cert” is not demonstrating Washington licensure.)
Experience with Your Utility: Ask how many systems the installer has connected to your specific utility (PSE, Seattle City Light, Avista, etc.). Utility interconnection rules vary, and experienced installers navigate them faster.
Net Metering Knowledge: Confirm the installer understands your utility’s net metering tariff under RCW 80.60. They should be candid that the state production incentive program closed in 2020 and not pitch a quote that depends on an expired “per-watt” rebate. This directly affects your financial return.
Warranty Coverage: Expect at least a 10-year workmanship warranty and 25-year equipment warranty (standard in the industry). Verify what is covered and what is not.
Multiple Quotes and System Designs: Get at least three quotes. Compare system size, equipment brands, pricing, and warranty terms. Do not assume the largest system is the best; right-sizing matters.
References and Reviews: Ask for at least three recent customer references in your area. Check Google, Yelp, and the Better Business Bureau. Look for patterns in feedback, not just overall ratings.
Transparent Pricing and Financing: Avoid installers who pressure you into financing before you understand the full cost. Request an itemized quote and clarify whether prices include permitting, interconnection, and incentive applications.

Next Steps for Washington Homeowners

The solar market in Washington is competitive, and installer quality varies widely. Getting multiple quotes is the single most important step in your solar decision.

Use comparison platforms like EnergySage and SEIA’s installer directory to request quotes from vetted local installers. Ask each installer for:

A detailed system design with equipment specifications
An itemized cost breakdown
An estimate of year 1 and 25-year savings
Warranty terms in writing
A timeline for permitting and installation

Compare not just price but also experience, warranty, and customer reviews. The cheapest quote is not always the best value if the installer lacks experience with your utility or offers weak warranties.

For more information on Washington state incentives, visit the DSIRE database. For national solar market trends and installer ratings, see the SEIA state map.

Want solar power without the installer process at all? A solar generator pairs portable panels with a battery in one box that ships to your door — no permits, no roof work, no sales calls. See our Washington backup power guide for the sizes that fit Washington homes and outage risks.

Sources for 2026 data: IRS Section 25D guidance, DSIRE state incentive database, Washington State Department of Revenue, Puget Sound Energy, Seattle City Light, Avista Utilities, SEIA state market data, NREL solar resource maps, EnergySage state cost benchmarks.

Incentive	Type	Amount
Washington State Property Tax Exemption	Property Tax Break	100% exemption on solar equipment value (for systems up to 100 kW AC)
Washington State Sales Tax Exemption	Sales Tax Break	100% exemption on solar equipment and labor for residential systems under 100 kW
Net Metering (statewide, all electric utilities)	Utility Credit	1:1 retail-rate credit for excess generation under RCW 80.60
Washington Clean Energy Fund	Grant/Rebate	Up to $2,000 for income-qualified households