Solar Panels in Washington (2026 Guide)
Washington has a real advantage most states don't — a sales-tax exemption that knocks thousands off your install — and it still has retail net metering in 2026. The catch: cheap hydro power means lower bill savings and a longer payback, and net metering is starting to close in some utilities. Here's the honest picture and where Washington solar makes the most sense.
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How Much Do Solar Panels Cost in Washington?
Washington installs average around $2.55–$2.85 per watt before incentives (about $2.68 statewide). For a typical home system:
- 5 kW system: ~$12,750–$14,250
- 10 kW system: ~$25,500–$28,500
Your real price depends on your roof, equipment, and installer. See our 2026 solar cost breakdown.
Washington Solar Incentives in 2026
No federal tax credit in 2026
The 30% federal residential solar tax credit expired December 31, 2025 and is not available in 2026. See our 2026 tax credit guide.
Sales tax exemption (Washington's headline incentive)
This is the big one. Washington gives a 100% sales- and use-tax exemption on the purchase and installation of residential solar systems (up to 100 kW). Because Washington's sales tax runs roughly 7.5%–10.6% depending on location, that typically saves $1,000–$3,000+ off the top of a residential install. Your installer applies it with a tax-exemption certificate at purchase.
The old state production incentive is closed
Washington's well-known production-incentive program (RESIP, run by WSU) stopped accepting new applicants back in 2021. If you see it mentioned in an older guide, it's no longer available to new systems — existing participants are grandfathered.
Utility rebates (check your utility)
A few utilities have offered solar incentives — for example, Tacoma Power has had a per-watt rebate — but these vary a lot and change often. Check directly with your utility (Seattle City Light, Snohomish PUD, Tacoma Power, etc.) for current offers.
Low-income solar
Washington was awarded federal "Solar for All" funding, but the program is paused/in limbo as of 2026 due to a federal funding dispute. Don't count on it as an available program right now.
Net Metering in Washington (active, but closing)
Washington still offers retail-rate net metering in 2026 — you earn a bill credit for exported energy at the same rate you pay, effectively 1-for-1, for systems up to 100 kW. That's the good news. The important caveat:
- Utilities are required to offer it until June 30, 2029, or until net-metered systems reach a set share of the utility's load — whichever comes first.
- Puget Sound Energy (the state's largest utility) has already hit its cap. New PSE systems are moving onto a successor tariff that will likely credit exports below full retail. If you're in PSE territory, this is the single biggest variable in your payback — confirm current terms before you sign.
In plain terms: 1-for-1 net metering is available now in much of the state, but it's tightening, so timing and your specific utility matter.
Major Washington Utilities & Rates
Washington is served by a mix of utilities: Puget Sound Energy (largest), Seattle City Light, Avista (eastern WA), Tacoma Power, Snohomish PUD, and many public utility districts. The defining fact for solar here is rates: among the lowest in the country, roughly 10–12¢ per kWh (PSE runs higher, ~15¢), thanks to abundant hydroelectric power. Cheap power is great for your bill but means each kWh your panels offset saves less — so payback is longer than in high-rate states.
Is Solar Worth It in Washington in 2026?
It's situational, and we'd rather set honest expectations. The headwinds: very low electricity rates, less sun (especially west of the Cascades with long cloudy winters), no federal credit, and net metering tightening in PSE territory. The tailwinds: a genuinely valuable sales-tax exemption, retail net metering still active in 2026, and equipment prices near historic lows. Washington solar makes the most sense for higher-usage homes, sunnier eastern Washington (Spokane/Avista), homeowners who value backup and resilience, and those who can lock in 1-for-1 net metering before it changes. It's harder to justify on bill savings alone given cheap hydro power. A custom quote for your utility and roof shows your real payback.
Frequently Asked Questions
How much do solar panels cost in Washington in 2026?
Around $2.55–$2.85 per watt before incentives — about $12,750–$14,250 for 5 kW and $25,500–$28,500 for 10 kW.
Does Washington have a solar tax credit?
No income-tax credit, but a 100% sales-tax exemption on residential solar (up to 100 kW) — often $1,000–$3,000+ saved. The federal credit expired December 31, 2025.
Does Washington have net metering?
Yes, retail-rate net metering is active in 2026 (up to 100 kW), but it's capped and closing — PSE has hit its limit and is moving to a lower successor rate.
Why is solar payback longer in Washington?
Cheap hydro power (~10–12¢/kWh) means each offset kWh saves less. Sunnier eastern WA does better than the cloudy west side.
Is solar worth it in Washington?
For higher-usage homes, sunnier eastern WA, or those wanting backup — and who lock in net metering before it changes — it can be.
Sources
Sales-tax exemption (SB 5116): WA Dept. of Revenue. Net metering (RCW 80.60) & PSE cap: WSU Energy Program, WA UTC. Costs & rates: EnergySage, ElectricChoice. Federal credit expiration: IRS OBBB guidance.