Home Solar in Washington:
Local installers, tax credits, and rebates.
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5,627,646
Washington residents who experienced power outages in a span of ten years¹
54%
Prices have fallen 54% over the last 10 years²
$1,500+
Average yearly savings for homeowner's who switch to solar³
Washington Solar
Washington is a state with a rich natural landscape and a growing commitment to renewable energy solutions. With 165 sunny days per year the state experiences less sun than other states across the country. For homeowners considering solar energy, you might be asking. Is solar a smart choice? Remember that solar panels generate electricity using both direct and indirect sunlight, ensuring they continue to produce power even on overcast days. With increasing electricity costs, financial incentives and new technology, home solar can be worth it.
Let’s learn about home solar incentives, the utility policies associated with interconnection and setup, and solar financing plans for solar panels and battery systems in Washington.
Incentive Programs, Tax Credits, and
Solar Rebates in Washington
| Incentive | Description |
|---|---|
| Federal ITC - 30% | Solar PV systems installed in 2022 - 2032 are eligible for a 30% tax credit. The credit can only be claimed by on the original installation of the solar equipment located at a residence of yours. You must also purchase it using cash or financing, but you're not leasing the system or paying a solar company for the electricity produced by the system. |
| Instant Rebate from EnergyPal | EnergyPal secures group discounts by leveraging the depth of our network. We pass these savings onto homeowners every day! |
| Sales tax exemption | In Washington, you can benefit from a complete sales tax exemption for solar systems up to 100 kW, including labor costs associated with installation. This exemption can be claimed when you file your state tax returns. |
| Net Metering in Washington | Net Metering in Washington lets solar owners share extra energy they generate with the power grid. In return, they receive credits on their electric bill, valued at the same rate as the utility's retail price. |
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Other Solar Energy Incentives
The US federal government helps residents and businesses pay for their solar systems. The federal investment tax credit (ITC) allows for a tax deduction of 30% of the cost of a solar system currently. Tax credits can be rolled over if you can’t use the whole credit this year. The ITC cannot be claimed for solar leases or power purchase agreements (PPAs) where the third party financier takes the credits themselves, but that is typically baked into a reduced lease/PPA monthly for you.
If you purchased a $20,000 system, your savings from the federal tax credit would look like this:
$20,000 X 0.30 = $6,000 savings
Home Solar Financing in Washington
There are three pathways to powering your home with solar energy in Washington: purchasing the solar system outright, obtaining a loan for its financing, or opting for a leasing program. Solar systems can be financed by bank loans, solar installer financing, new home mortgages, energy loans and home equity loans or lines of credit. Cash works too. Regardless of your choice, solar panels can reduce your home energy expenses, contributing to financial savings and a cleaner power supply. Our Energy Advisors can guide you to the best solar deals in Washington. Here's a comparison:
Solar Purchase
- Optimal Return-On-Investment
- Potential Reduction of Bills to near $0
- Enhances Property Value
Outright Solar Purchase: Homeowners with a stronger financial position often cover the full cost of solar upfront, yielding the highest return-on-investment over the system's lifespan. By paying in cash, homeowners in Washington can claim tax credits and rebates, avoid interest charges, and directly enjoy the savings on their electricity bills. Some of our customers experience virtually no electricity expenses from the moment they install solar. We offer top-tier products at attractive cash prices.
Solar Loan
- No Initial Expenses
- Ownership of the System
- Appreciates Property Value
Solar Loan Financing: Utilizing a solar loan enables you to save and own your solar system, as our financiers cover the upfront expenses (similar to an auto loan). Homes equipped with solar systems command higher value due to their lower operational costs. Depending on the chosen solar loan, you can achieve greater monthly savings or complete your financing earlier. Our team will help you secure the most favorable rates and terms to match your requirements. To learn about our latest offerings, connect with us
Solar Lease
- No Initial Investment Required
- Complete Maintenance Coverage
- Lower Monthly Payments
- Guaranteed Rates
Solar Leasing: Leasing solar panels provides an accessible and cost-effective path to solar adoption. With zero upfront costs—often referred to as “$0 down solar financing“—installation and maintenance are entirely managed, and your home benefits from the energy generated by the solar panels. You pay a consistent monthly fee and save compared to your existing electricity bill. The reduced electricity rate are what many homeowners like about this option.
Talk to your EnergyPal Advisor about financing solar options in Washington. We regularly source the best deals and terms for our customers. Let us guide you through the finance and application process from A-Z.
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Frequently Asked Questions
Is it worth going solar in Washington?
In most cases, yes, solar will save you a significant amount of money. Solar panels produce electricity and reduce how much power you have to purchase from your electric company. The typical homeowner in Washington pays around 11.18¢ cents per Kilowatthour.
What is the payback period for solar panels in Washington?
Homeowners who install a solar array sized to meet 100 percent of their energy needs can still pay off the upfront cost in as little as 5-6 years. The typical payback period in Washington averages 8.6 years.
How much are solar panels in Washington?
As of August 2023, the average solar panel cost in Washington is $3.25/W. Given a solar panel system size of 6 kilowatts (kW), an average solar installation in Washington is $13,650 with 30% tax credit applied.
What incentives are available for solar in Washington?
Solar installations in Washington are eligible for the 30% solar tax credit. Connect with us to learn more about all the local Washington incentives, tax credits & rebates you qualify for.
¹https://www.eaton.com/content/dam/eaton/products/backup-power-ups-surge-it-power-distribution/backup-power-ups/blackout-tracker-/blackout-tracker-annual-report-2018-mz153043en.pdf
²https://www.seia.org/solar-industry-research-data
³https://www.energy.gov/articles/4-reasons-go-solar-summer
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