Washington solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your homes location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Washington solar incentives 2020

Governor Jay Inslee needs some introductory theme music for this page. It should be snappy, hot, and full of swagger. In 2019, he helped lead a coalition of smart solar policy warriors to finally get the new solar law enacted they’ve wanted for ages. 

That law, The Solar Fairness Act, expanded net metering and re-introduced a sales tax exemption for solar. All that support from the legislature adds up to a big jump in your solar incentive savings. 

On this page, you can:

  1. Learn what solar incentives are available to Washington homeowners

  2. See what Washington solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Washington solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Washington

This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.

The federal tax credit falls to 22% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 2022.

Net energy metering in Washington

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

In 2019, Washington expanded its net metering requirements eightfold. This change should give the solar industry some much needed stability.

The best net metering laws make sure that you get the full retail value of every kilowatt-hour (kWh) of surplus you produce with your solar panels – either in credit to future bills or, if you consistently run a surplus, cash payments at the end of a regular accounting period.

In Washington however, any net surplus you have accumulated and not used as a bill credit are forfeited to the utility on March 31st of each year, without compensation. Don’t fret! This just requires a little more planning to make sure you don’t install more solar power capacity than you will use each year.

Washington solar rebates

While Washington does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year. 

Sales tax exemption

In 2019, Washington restarted its 100% sales tax exemption on all equipment, all labor, and all services related to the installation of that equipment from all sales and use taxes on home solar systems up to 10kW. As the sales tax in Washington is currently 9%, that’s nothing to sneeze at when purchasing equipment that costs twenty to thirty thousand dollars. We’d love to see that 10kW maximum bumped up, but otherwise, that’s a model law right there. No twists, no tricks, just savings for smart solar energy.

Cost of solar panels in your part of Washington after all applicable solar incentives

Showing data for:

Prices based on a 11.7kW system, after 26% federal tax credit

Solar prices near you

Cost range of local prices

$19,615-$23,974

Payback period

10.7-13.1 years

Net profit (savings less system cost)

$29,997-$36,663

Average size system installed in WA in 2020

11.7kW

Solar panel cost calculator

Best 10 solar companies in Washington

36 solar companies in Washington provide pricing on SolarReviews. Here are the best rated companies near you.

Solar guides for your Washington city

For more information about going solar near where you live, check out the following resources:

Find local city information

 

Useful links

Clark Public Utility Solar Loan Program - Low interest loans to finance solar projects up to $30,000

Chelan County Sustainable Natural Alternative Power Program (SNAP) - Pooled utility bill savings for power producers.

Solar Energy Industries Association (SEIA)

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