Guide to Solar Incentives in Washington State

Well known for its rainy days and cloudy skies, solar energy may not be top of mind when thinking of the Evergreen state. With around 200 sunny days a year, Washington has plenty of sunshine to make solar energy a rewarding renewable energy source. In fact, the state is one of the top in the nation for renewable energy generation. Washington’s commitment to clean energy is evident with over 80 policies and incentives, including rebates and tax credits.

Let’s look at the incentives available to Washington homeowners as they make the switch to solar power.

Federal Incentive with the Investment Tax Credit

One of the biggest incentives for choosing solar in Washington—and throughout the nation—is the federal solar tax credit (ITC). This program allows you to claim a credit on your federal income taxes, equivalent to 30% of your total solar and battery installation costs, providing substantial savings on your investment.

Though the size of the credit you can claim depends on your tax liability, the ITC does roll over from year to year, and in general it offers savings of approximately $7,500.

State Renewable Energy Projects Sales Tax Exemptions

The state of Washington also offers its residents specific solar savings and incentives. Residential solar systems can benefit from a 100% exemption from sales taxes. Systems smaller than 100 kilowatts are eligible for this exemption at the state and local levels. 

Forbes estimates Washington property owners can save over $2,000 when installing new solar energy systems due to this tax exemption, providing a significant financial benefit for those investing in solar power.

To take advantage of these Washington state solar tax savings, homeowners purchasing new rooftop solar panel systems need to obtain a retail sales tax exemption certificate through the Washington State Department of Revenue and keep it for five years. If you have installed a rooftop system in the past and did not apply for the savings, you can also retroactively apply for a refund. 

Net Metering

Net metering allows residential customers to sell extra electricity generated by solar panel systems back into the utility grid—and these programs and policies are mandated by Washington state law. Therefore, net metering allows homeowners to save money on future utility bills and to receive credit for excess energy they generate. They can use their credits to cover their energy needs at times when their photovoltaic (PV) panels are not generating power or cash out their credits annually on April 30. 

Keep in mind: Eligibility for net metering is granted on a first-come, first-served basis and credits expire on March 31 each year. Local utilities who participate include Avista Corporation, Clark Public Utilities, and Puget Sound Energy. Your local utility provider can offer more information about these clean, renewable energy benefits and the savings offered by the credits, as buy-back rates vary. 

Alternatively, homeowners may opt to install a solar battery with their customized rooftop system, saving excess electricity for their own future use and nearly eliminating their electricity bill.

Solar Easement Laws and Rights

To generate solar energy, you’ll need full access to sunshine. Where your solar panels are installed on your roof and the amount of sunshine allowed to hit them are both determining factors in their output. Washington offers solar easement laws to aid homeowners in maximizing their access to solar energy production. 

For photovoltaic (PV) systems to work effectively they should not be placed in the shade. This includes plants and trees in your neighborhood, which could obstruct your solar panels. While these protections do not give a homeowner the right to remove anything creating shade, once obtained a solar easement empowers homeowners to work with neighbors and the local government to protect their access to the sun. Easements also stay with the property over time, transferring from one owner to the next. 

Washington also provides homeowners protection from homeowners’ associations (HOAs) which may seek to restrict the installation of solar energy systems. This protection is designed to make it easier to install and benefit from clean energy solutions.

Solar Consumer Protection and Expansion

The use of solar energy systems has skyrocketed in Washington, and the state seems set in providing a path for better access to renewable resources. In fact, Washington’s Renewable Portfolio Standard (RPS) goals call for 100% of the state’s power production to be from renewable sources by 2045. 

The state government is making headway toward this goal. Washington State Department of Commerce announced $3.7 million in grants for nine solar energy community projects across the state. While some current programs have reached capacity, overall more solar energy has been successfully brought to low-income areas over the last few years. Additional laws seeking to protect homeowners from predatory sales methods while still making solar easily available are gaining momentum.

Straightforward Solar

Washington’s historical interest in clean energy, an increase in solar programs, and robust consumer protection laws show its commitment to sustainability and clean energy innovation. Generous incentives and supportive regulations make solar a great option for a bright future, and choosing an installation partner like Blue Raven Solar can make it easy.

Our solar experts will help you estimate how much you can save by evaluating your energy usage, roof layout, lifestyle, and budget. We factor in Washington’s solar incentives and rebates to make your PV system affordable, and we will guide you through each step of the installation process—from system design to energization—for a straightforward experience.

Contact us to schedule your free consultation today.