Washington Solar: Full Credits Today, on Your Utility’s Clock

A typical Washington home system is 8.64 kW and costs about $24,710 in cash at $2.86 per watt. With full one-for-one bill credits it pays for itself in about 14.1 years at Puget Sound Energy, the largest utility, simple payback before incentives. At the other large utilities it takes 17.4 to 30.7 years, because Washington’s sun is weak and many utilities charge little for power. How long full credits stay open depends on your utility.

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Why full credits still mean a 14- to 31-year payback in Washington

Most Washington utilities still credit each kWh you send out at your full price. The payback is long anyway: each kW of panels makes about 1,096 kWh a year, and many utilities charge little for power.

Net metering 1 kWh for 1 kWh

  1. Power your home uses as it is made saves your full price.
  2. Each kWh you send out becomes a credit for a later bill.
  3. Credits left on March 31 go to the utility, unpaid.

PSE Solar Energy Credit 6.713¢ per kWh

  1. Power your home uses as it is made still saves your full price.
  2. Each kWh you send out earns 6.713¢ under Schedule 667.
  3. It replaces net metering: you cannot have both.
The typical 8.64 kW system on net metering, $24,710 cash
Utility and price per kWhBill savings, year oneCash priceSimple payback before incentives
Puget Sound Energy (PSE): 18.56¢$1,758$24,71014.1 years
Seattle City Light: 15.00¢$1,420$24,71017.4 years
Pacific Power: 14.29¢$1,353$24,71018.3 years
Avista: 13.48¢$1,277$24,71019.4 years
Clark Public Utilities: 10.65¢$1,008$24,71024.5 years
Snohomish County PUD: 9.69¢$917$24,71026.9 years
Tacoma Power: 8.49¢$804$24,71030.7 years

Swipe the table sideways to see every column.

PSE’s Schedule 667 pays only 6.713¢ for each kWh you send out, so a home on it takes much longer to pay back; our per-utility figures do not model it. Schedule 667 is an option a PSE customer can pick, not a replacement PSE has announced. PSE’s Schedule 150 net metering stays open until a new rate schedule is in place, and PSE says it will give notice first.

How we calculated this
  • Output: 8.64 kW × 1,096 kWh per kW = 9,469 kWh a year. The Cost Index prints 9,462 kWh at a rounded 1,095.
  • Net metering: every kWh counts at your utility’s price, because power you send out comes back at full value if you use the credit before March 31.
  • Price per kWh: each utility’s EIA 12-month average, August 2025 to July 2026, less its fixed monthly charge. PSE: 19.45¢ less the $7.49 basic charge is 18.56¢, so 9,469 kWh save $1,758 a year.
  • Payback: $24,710 ÷ $1,758 = 14.1 years at PSE. No upkeep, price rises, financing or panel aging are counted.
  • Washington prints no statewide figure, so we show PSE, the largest utility, first.

PSE and Pacific Power are past Washington’s 4% cap: what that means for a new solar home

State law makes a utility offer net metering to new solar homes until June 30, 2029, or until its solar total reaches 4% of its 1996 peak demand, whichever comes first. Past that point, a utility may set its own rate for new homes.

June 30, 2029The law’s end date

The last day any Washington utility must accept new net metering homes.

4%The cap

Of the most power the utility’s customers drew at one moment in 1996.

12Utilities past it

In the WSU Energy Program table of January 31, 2026, including PSE and Pacific Power.

Feb 1, 2027Pacific Power’s request

It asked the UTC to close net metering to later applications. Still pending on October 14, 2026.

Share of the 4% cap used, January 31, 2026
UtilityCap usedWhat a new solar home gets today
Puget Sound Energy132.25%Net metering under Schedule 150, kept open by PSE until a replacement is ready
Pacific Power115.42%Net metering under Schedule 135; a request to end it for later applications is pending
Seattle City Light92.57%Net metering; City Light is planning its next phase
Avista77.84%Net metering under state law
Snohomish County PUD77.82%Net metering, with the credit kept in dollars
Clark County PUD63.61%Net metering under state law
Tacoma Power50.86%Net metering under state law

Swipe the table sideways to see every column.

If you are already on net metering, or about to apply

A home that joined before a cutoff keeps its credits as long as its interconnection agreement, the contract that lets your system connect to the grid, stays valid. PSE says customers approved under Schedule 150 can stay on it.

Under Pacific Power’s proposal (UTC Docket UE-250695), a complete application by February 1, 2027 keeps net metering for 25 years. Later applicants would get a smaller credit based on avoided cost. The UTC can change or reject the proposal, so the date is not final. Seattle City Light says its goal is at least six months of notice before any change takes effect.

The WSU table is the latest one posted; it counts systems to January 31, 2026.

Puget Sound Energy, Seattle City Light or Snohomish PUD: what a Washington credit is worth

The name at the top of your bill sets what each credit is worth and how long full credits stay open to new homes.

Puget Sound Energy (PSE)

1 kWh for 1 kWh

Schedule 150 net metering, or the optional 6.713¢ Solar Energy Credit. Serves Bellevue, Olympia, Bellingham and much of the Puget Sound area outside Seattle.

Next: ask which schedule goes on your application.

Seattle City Light

13.38¢ per kWh credit

Credits are valued at your retail rate: 13.38¢ on the flat rate inside Seattle, plus a 39.45¢ daily base charge. 100 extra kWh are worth $13.38.

Next: ask which rule covers an application filed today.

Snohomish County PUD

10.613¢ per kWh, as dollars

Extra power becomes a dollar credit at the Schedule 7 energy charge, 10.613¢ since April 1, 2026. It cuts the energy part of the bill, not the daily base charge.

Next: use saved credit before March 31.

Pacific Power, Avista, Tacoma Power or another utility?

Pacific Power serves Yakima, Walla Walla and nearby parts of south-central and southeast Washington. It credits 1 kWh for 1 kWh under Schedule 135 and has asked to stop for applications after February 1, 2027 (see the cap table).

Avista, Clark County PUD and Tacoma Power were below the cap on January 31, 2026, so state net metering applies. WSU lists Franklin PUD, Kittitas PUD and OPALCO, the San Juan County co-op, as no longer following the state credit rule. If one of them is yours, get the current credit in writing. A public utility changes its rule by a vote of its own board.

Snohomish County PUD also has a net billing schedule (201) that pays 3.83¢ to 4.605¢ per kWh in 2026. Its net metering schedule stays open to new solar homes until its board adopts a new rate. Seattle’s suburban flat rates run 13.56¢ to 14.65¢.

Washington’s March 31 reset: size the system to a year of your use

Credits roll forward from month to month. Once a year, on March 31, state law hands any credits left from the past year to the utility, with no payment.

1,000 kWhBanked

A home builds up credits over the summer.

800 kWhUsed by March 31

By March 31 the home has drawn down 800 of them.

200 kWhLost

Cleared on March 31, unpaid. Snohomish PUD’s dollar credits expire the same day.

9,462 kWhThe typical system’s year

What 8.64 kW makes in a year. Put it next to a year of your bills.

PSE says the same thing in its solar FAQ: it does not recommend sizing a system to make more power than you expect to use in a year. A bigger system costs more and earns nothing for the extra.

Washington solar prices at $2.86 per watt, sales tax exempt through 2029

The September 2026 benchmark: $0.03 below the US average, 24th lowest of 51. These are modeled cash prices, not quotes we collected.

Cash price and what each size makes in a year
System sizeCash priceMade in a year
5 kW$14,3005,475 kWh
8.64 kW (typical)$24,7109,462 kWh
10 kW$28,60010,950 kWh
12 kW$34,32013,140 kWh
How we got these numbers
  • 8.64 kW is the median size Washington homeowners installed in 2025 (Berkeley Lab, 3,743 systems). Size yours to a year of your own use.
  • Output uses the Cost Index figure of about 1,095 kWh per kW a year. Shade lowers it.
  • Net metering covers home systems up to 100 kW AC.
  • A system you own gets no federal tax credit after December 31, 2025.

Washington’s sales tax exemption and the PSE and Pacific Power battery payments

No rebate and no tax credit for the panels. The money in Washington is the bill credit, the sales tax exemption and two utility battery programs.

0%Sales tax

100% of state and local sales tax off qualifying equipment, through December 31, 2029 (RCW 82.08.962).

$75/kWhPSE Flex Batteries

At sign-up, up to $1,000 per battery. Then 50¢ per kWh in Flex events, up to $500 a year.

$600/kWPacific Power Wattsmart Battery

Up to $3,000 and 70% of the battery cost, then $15 per kW a year from year two.

$0Tax credit

Washington has no individual income tax, and the federal credit ended for systems placed in service after December 31, 2025.

Ways to pay for solar in Washington
Way to pay
Panels belong to
Check this in Washington
Cash
You
No sales tax line; exemption certificates for the seller and installer
Credit union loan
You
The financed total next to the cash price; the lender sets the terms
Prepaid lease
The lease company
Who owns and repairs it, and the buyout price if you sell

Swipe the table sideways to see every column.

Washington solar money you should not count on
  • A yearly state payment for the power you make: the production incentive has been full since 2019, and the law stopped new sign-ups after June 30, 2021.
  • Free solar from Washington Solar for All: the state paused it after the federal government moved to end the grant on August 7, 2025. There is nothing to apply for.
  • Full credits later, if you have not applied yet: PSE and Pacific Power are past the cap, and Seattle City Light is planning changes. Only an approved application fixes your rule.
  • PSE Flex Batteries on a Time-of-Use plan: you cannot join on one.

Four checks before a Washington home goes solar

  • A year of useSize to your past 12 months of bills, plus a planned heat pump or EV. Credits past that are lost on March 31.
  • ShadeTrees cut output. Ask for a shade report and the kWh per kW the quote assumes.
  • Roof ageReplace an old roof first, or get the remove-and-reinstall cost in writing.
  • Time in the homeWith 14.1 to 30.7 years in our utility cases, compare your planned stay with your quote’s payback.

Three Washington installers with active L&I licenses, A to Z

Listed A to Z, not ranked. Licenses checked in Washington Labor & Industries contractor data on October 13, 2026; other facts from each company’s own site, read October 13 to 14, 2026.

A&R Solar

Office
Seattle, WA (also Tualatin, OR)
Licenses
Electrical RSOLAS*903JM, general contractor RSOLAS*825P9, both active
Warranty
10-year workmanship; labor to replace failed equipment for 2 years
More facts
Solar since
2007 (company says)
Ways to pay
Purchase, credit union loan, prepaid lease
A&R Solar profile

Northwest Electric & Solar

Office
Kenmore, WA
License
Electrical NORTHES876MA, active
Warranty
25-year workmanship; 2 years of equipment labor
More facts
Founded
2011 (company says)
Ways to pay
Purchase, credit union loan, 25-year prepaid lease
Northwest Electric & Solar profile

Puget Sound Solar

Office
Seattle, WA
Licenses
General contractor PUGETSS932MU, electrical PUGETSS920RH, both active
Warranty
25-year workmanship; its FAQ also lists 10 years of labor, so ask which applies
More facts
Solar since
2001, Seattle’s first net-metered system (company says)
Ways to pay
Cash or credit union loan; no lease or PPA
Puget Sound Solar profile

None of these three companies buys leads from EcoGen America. How we make money.

What a Washington quote should spell out: credit rule, size and tax

  • Your credit rule, in writingNet metering or a lower credit, the schedule by name (at PSE, 150 or 667) and the date your utility confirmed it.
  • Your application dateAt Pacific Power, whether a complete application can go in before February 1, 2027.
  • Size against a year of billsYear-one kWh next to your past 12 months of use, so little is left on March 31.
  • No sales tax lineThe exemption applied to the equipment, and whether the installation labor qualifies too.
  • Output per kWThe kWh per kW the quote assumed, with a shade report. The Cost Index uses about 1,095.
  • A Washington contractor licenseThe registration number, which you can look up with L&I’s Verify a Contractor tool.

Collecting Washington bids?

PSE suggests at least three bids, each with the total cost, the cost per kW and the expected yearly output.

Check your Washington roof and savings

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Washington Solar FAQs

Does Washington still have net metering?

Yes. State law makes each utility offer it to new solar homes until June 30, 2029, or until its solar total reaches 4% of its 1996 peak demand. PSE and Pacific Power are past that cap but still offer it. Pacific Power has asked to stop for applications after February 1, 2027; the request was pending on October 14, 2026.

What happens to unused solar credits on March 31?

They go to your utility with no payment. Credits roll forward month to month, but on March 31 any left from the past year are cleared. That is why a system should make no more than your home uses in a year.

Do I pay sales tax on solar panels in Washington?

Not on qualifying equipment for a system of 1 to 100 kW AC, through December 31, 2029. Give the seller an exemption certificate. Installation labor is exempt only when the installer meets the state’s conditions.

Is there a Washington solar rebate or tax credit?

No. Washington has no individual income tax, so there is no state credit, and its old production payment program stopped new sign-ups after June 30, 2021. The federal credit ended for systems you own placed in service after December 31, 2025. PSE and Pacific Power do pay toward a home battery.

Should a PSE customer choose the Solar Energy Credit?

Compare both before you apply, because you cannot have both. Schedule 667 pays 6.713¢ for each kWh you send out, less than half PSE’s price, so payback runs much longer than the 14.1 years on net metering.

RCW, utility tariffs and the people behind this Washington page

Sources (23 documents, each with the date we read it)
  1. EcoGen Solar Cost Index, September 2026: Washington$2.86 per watt, 8.64 kW median size (Berkeley Lab 2025, 3,743 systems), about 1,095 kWh per kW, 9,462 kWh a year, 14.12¢ statewide average (EIA). Paybacks from our per-utility figures of October 19, 2026: 1,096 kWh per kW and each utility’s EIA 12-month price with its fixed charge taken out.
  2. Chapter 80.60 RCW: net meteringJune 30, 2029 end date, 4% of 1996 peak cap, 100 kW limit, March 31 reset. Read September 30, 2026.
  3. WSU Energy Program: net metering progress by utilityShare of the cap used by each utility, data to January 31, 2026. Read October 1, 2026.
  4. Puget Sound Energy: Customer Connected Solar FAQSchedule 150 open until a new schedule, notice before closing, March 31 expiry, sizing advice, three bids. Read October 14, 2026.
  5. Puget Sound Energy: Schedule 667 Solar Energy Credit6.713¢ per kWh, effective September 13, 2024; not combined with Schedule 150. Read September 29, 2026.
  6. Puget Sound Energy: Flex Batteries$75 per kWh up to $1,000, event payments, Time-of-Use exclusion. Read September 29, 2026.
  7. Washington UTC: Docket UE-250695, Pacific Power net billingStatus pending, effective date February 1, 2027. Read October 14, 2026.
  8. Pacific Power: customer generation and Schedule 135Net metering terms and the 25-year proposal for complete applications. Read September 29, 2026.
  9. Pacific Power: Wattsmart Battery handout$600 per kW up to $3,000 and 70% of cost, $15 per kW a year. Read September 29, 2026.
  10. Seattle City Light: solar and net meteringCredits at your retail rate; next phase planned with at least six months of notice. Read October 1, 2026.
  11. Seattle City Light: residential rates13.38¢ per kWh and 39.45¢ a day inside Seattle; 13.56¢ to 14.65¢ in suburban cities. Read September 30, 2026.
  12. Snohomish County PUD: 2026 electric rates, Schedules 7, 200 and 20110.613¢ energy charge from April 1, 2026; dollar credits; 3.83¢ to 4.605¢ net billing. Read September 30 and October 1, 2026.
  13. RCW 82.08.962: solar sales tax exemption100% of state and local sales tax, up to 100 kW, through December 31, 2029. Read September 30, 2026.
  14. Washington Department of Revenue: tax incentive programs1 kW minimum, certificates, installer conditions for the labor exemption. Read September 30, 2026.
  15. Washington Department of Revenue: retail sales tax6.5% state rate plus local rates. Read September 30, 2026.
  16. Washington Department of Revenue: income taxNo individual income tax in 2026. Read October 1, 2026.
  17. WSU Energy Program: Renewable Energy System Incentive ProgramFully subscribed since 2019; no new certifications after June 30, 2021. Read September 29 and 30, 2026.
  18. Washington Department of Commerce: Solar for AllPaused after August 7, 2025. Read September 30, 2026.
  19. IRS: Residential Clean Energy CreditNo credit for property placed in service after December 31, 2025. Read September 30, 2026.
  20. Washington L&I: Verify a ContractorInstaller registrations, checked in L&I contractor data on October 13, 2026.
  21. U.S. EIA: average residential price by state14.12¢, 12 months August 2025 to July 2026, as used in the Cost Index.
  22. 2025 Annual Technology Baseline: residential PVOwner costs of $29.83 per kW a year. Not counted in our paybacks.
  23. Berkeley Lab: solar self-consumption research (2022)Home-use research. Our net metering paybacks need no home-use share, because every kWh used before March 31 counts at the full price.
Dean Mahmoud
Written by

Dean Mahmoud

CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.

About Dean
Trevor Guilday
Checked by

Trevor Guilday

Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.

About Trevor