Washington Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Washington homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $16,380 in Washington, that's a direct tax credit of $4,914. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

Washington does not currently offer a state-level solar tax credit. However, Washington homeowners still benefit from the substantial 30% federal ITC, worth $4,914 on a typical 6kW system. Even without a state credit, solar is economically attractive in Washington with electricity rates averaging 13.11¢/kWh.

Great news for Washington homeowners: Solar energy systems are exempt from property tax assessments. Sales tax exemption for systems < 100 kW; upfront exemption Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with Washington's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

Washington exempts solar energy equipment from state sales tax. On a 6kW system costing $16,380, this saves you approximately $1,065 at the point of purchase. This is an immediate, upfront savings that reduces your out-of-pocket cost before even accounting for tax credits.

Net metering policy: Full Retail Rate. Full retail rate net metering; annual true-up in March/April The current system size cap is 100 kW.

Washington's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 13.11¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.

Washington has a mandatory Renewable Portfolio Standard (RPS) target of 15% by 2020 (met), 100% clean by 2045. This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.