Solar in Washington: market, incentives and net metering reality

Market snapshot

Solar in Washington by the numbers

Installed capacity

1,300 MW

Homes powered

165K

Solar share of electricity

1%

Solar jobs in state

3,800

Typical cost per watt

$2.90

US ranking

#24

Washington's solar market is small relative to the state's population because of two factors: low electric rates (the lowest in the contiguous US) and modest sun hours. Growth has still been positive, driven by the sales-tax exemption, state climate policy and homeowner interest in energy independence more than payback economics. Seattle metro and Spokane are the main residential markets.

Rates and net metering

Electric rates and how solar export is credited

Incentives

State and local solar incentives in Washington

Beyond the 30 percent federal Residential Clean Energy Credit, which applies in every US state through 2032, Washington has these state and local programmes.

Washington sales-tax exemption

Residential solar PV equipment and installation labour are exempt from Washington's 6.5 percent state sales tax, under the renewable energy equipment exemption. Local sales tax exemption varies by jurisdiction (most have opted in).

No state income tax credit

Washington has no state income tax, so a state-level income tax credit for solar is not available. The main state-level benefit is the sales-tax exemption. The 30 percent federal Residential Clean Energy Credit still applies.

Property-tax exemption

Washington exempts the added value of residential solar systems from property-tax assessment under RCW 84.36.400. Automatic.

Solar Production Incentive (closed)

Washington's state Solar Production Incentive paid per-kWh for solar generation but closed to new residential enrollees in 2017. Grandfathered customers continue to receive payments through their 8-year contract term.

Permits and interconnection

Permits and interconnection

Permit timelines in Washington vary by jurisdiction. Seattle, King County and Snohomish County commonly take 3 to 6 weeks for residential. Spokane and smaller cities are often faster. SolarAPP+ adoption is growing. Interconnection with PSE and Seattle City Light typically runs 3 to 6 weeks post-install.

Running a solar company here

Running a solar company in Washington

Running a solar company in Washington means operating in a market where payback is a secondary driver and homeowner motivation often matters more than pure economics. The customers who sign are often doing so for energy independence, environmental alignment or EV charging support rather than payback. Installers who sell on those motivations alongside the economics do better than those who try to win on payback alone, which the Washington maths does not quite support against Sun Belt states. Seattle has moderate lead costs ($120 to $170 range).

Questions people ask

Solar in Washington: FAQ

Does Washington have net metering?

Yes, full retail net metering at all the major utilities for residential solar systems up to 100 kW. Credits accrue monthly; year-end excess is usually zeroed out rather than paid out.

How much does solar cost in Washington?

Residential solar in Washington averages around $2.90 per watt installed, meaning a typical 7 kW system costs about $20,000 gross. After the 30 percent federal tax credit, net cost is around $14,000. Washington has no state solar tax credit.

Is solar worth it in Washington?

The honest answer is yes for homes with suitable roofs but with longer payback than most US states: typically 12 to 18 years for residential installations with the federal tax credit. The combination of modest sun hours and low electric rates stretches the maths. Homeowners who buy solar in Washington are often motivated by energy independence or EV charging support alongside pure payback.

Does Washington have a state solar tax credit?

No state income tax credit (Washington has no state income tax). The main state-level benefit is the sales-tax exemption on residential solar equipment and installation labour. The 30 percent federal Residential Clean Energy Credit still applies.