Quick Answer
Washington surprises with solid solar potential—Seattle produces ~70% of what Los Angeles does. Full 1:1 net metering, ~10% sales tax exemption, and property tax exemption help economics. An 8 kW system costs $24,000-$32,000 with 8-12 year payback. Low hydro-based rates ($0.08-$0.12/kWh) are the main challenge. Eastern Washington near Spokane has much better sun.
Washington Solar Overview
From my experience:
Washington surprises people. Yes, it rains. But Seattle actually produces about 70% of what Los Angeles does annually—not as bad as you would think. The real challenge here is not the clouds, it is the low electricity rates. Hydro power keeps your rates low, which means slower savings accumulation. That said, if you are in Eastern Washington near Spokane, you get way more sun and slightly higher rates—much better solar economics. The sales tax exemption is a nice perk either way.
Washington's reputation for rain and clouds can be misleading when it comes to solar. The state actually has good solar resources (especially east of the Cascades), strong incentives, and a growing solar market. Many Seattle-area homeowners are surprised by how well solar performs.
[Editor's Note, Jan 2026]:Washington utility rates remain relatively low due to hydropower. Net metering terms vary by utility—PSE, Seattle City Light, and PUDs each have different programs. Verify current terms with your specific provider.
Washington Solar Snapshot
Average system cost: $24,000-$32,000 (8 kW system)
Payback period: 8-12 years
Net metering: Full retail rate (1:1)
Sales tax exemption: 100% exempt (Source: EnergySage Marketplace Data, 2025)
Payback period: 8-12 years
Net metering: Full retail rate (1:1)
Sales tax exemption: 100% exempt (Source: EnergySage Marketplace Data, 2025)
Why Washington Works for Solar
- Full net metering: 1:1 retail credit for excess energy
- Sales tax exemption: Complete exemption on solar equipment
- Property tax exemption: Solar doesn't increase property taxes
- Long summer days: Excellent summer production
- Strong environmental values: High adoption interest
Challenges in Washington
- Cloudy winters: November-February production lower
- No state tax credit: No income tax (no credit possible)
- Low electricity rates: Hydro power keeps rates low
- Longer payback: Low rates mean slower savings
Solar Costs in Washington
Average Installation Costs
| System Size | Cost Range | Typical Home Size |
|---|---|---|
| 6 kW | $18,000-$24,000 | 1,500-2,000 sq ft |
| 8 kW | $24,000-$32,000 | 2,000-2,500 sq ft |
| 10 kW | $30,000-$40,000 | 2,500-3,500 sq ft |
| 12 kW | $36,000-$48,000 | 3,500+ sq ft |
Cost Per Watt
- Washington average: $3.00-$3.80 per watt
- Seattle metro: $3.10-$3.90 per watt
- Eastern Washington: $2.80-$3.50 per watt
- National average: $2.75-$3.50 per watt
Washington Solar Incentives
Federal Tax Credit (2026)
- Purchased systems: The 30% residential credit (Section 25D) ended December 31, 2025
- PPA/Lease: Section 48E still provides 30% through 2027—passed to you as lower payments
- Already installed: Systems installed before 2026 still qualify
State Incentives
- State tax credit: None (Washington has no state income tax)
- Sales tax exemption: 100% exemption on solar equipment and installation
- Property tax exemption: Solar doesn't increase property taxes
- Production incentive: Previous programs have ended; check for new programs
Sales Tax Exemption is Significant
Washington's sales tax exemption saves ~10% on your solar purchase (state + local sales tax). On a $30,000 system, that's $3,000 in savings—one of the most valuable state benefits available. (Source: EnergySage Marketplace Data, 2025)
Net Metering
Washington has excellent net metering rules that significantly benefit solar homeowners.
How Washington Net Metering Works
- 1:1 credit: Full retail rate for excess energy
- Monthly rollover: Credits carry to next month
- Annual true-up: Excess typically granted to utility in April
- System size: Up to 100 kW for residential
Net Metering by Utility
- PSE (Puget Sound Energy): Full net metering available
- Seattle City Light: Net metering with unique aspects
- Avista: Standard net metering
- PUDs: Generally offer net metering
Annual True-Up
Washington's annual true-up typically happens in April. Any excess credits remaining are typically granted to the utility (not paid out). This encourages right-sizing your system to your annual usage.
Major Utilities
Puget Sound Energy (PSE)
- Coverage: Western Washington (not Seattle proper)
- Customers: ~1.2 million electric customers
- Net metering: Full retail credit
- Rates: ~$0.10-$0.12/kWh (relatively low)
Seattle City Light
- Coverage: City of Seattle
- Type: Municipal utility
- Net metering: Available with unique aspects
- Very low rates: ~$0.08-$0.11/kWh (hydro-powered)
Tacoma Power
- Coverage: Tacoma area
- Type: Municipal utility
- Net metering: Available
- Low rates: Hydro-based generation
Avista
- Coverage: Eastern Washington (Spokane area)
- Net metering: Standard rules
- Higher rates: Than Western Washington
Public Utility Districts (PUDs)
- Various PUDs: Across Washington
- Local control: Policies set locally
- Generally supportive: Most offer net metering
- Often very low rates: Hydro power
WA-Specific Considerations
The "Cloudy" Myth
Washington's cloudy reputation is partially earned but often overstated for solar:
- Summers are excellent: Long, sunny days June-September
- Annual totals: ~1,100-1,250 kWh per kW (Western WA)
- Eastern Washington: ~1,300-1,450 kWh per kW (much sunnier)
- Cloudy days still produce: Diffuse light generates power
Production Comparison
Seattle: ~1,150 kWh per kW annually
Los Angeles: ~1,600 kWh per kW annually
Seattle produces about 70% of what LA does—significant, but not as different as you might think.
Los Angeles: ~1,600 kWh per kW annually
Seattle produces about 70% of what LA does—significant, but not as different as you might think.
Seasonal Variation
| Season | Relative Production | Notes |
|---|---|---|
| Summer (Jun-Aug) | 150-170% of average | Long days, excellent production |
| Spring/Fall | 80-100% of average | Variable weather |
| Winter (Nov-Feb) | 30-50% of average | Short days, clouds, rain |
Regional Differences
Seattle/Puget Sound
- Marine climate: More clouds, mild temps
- Low utility rates: Longer payback
- Strong market: Many installer options
- Environmental motivation: Often a factor
Eastern Washington
- Much sunnier: 300+ sunny days in some areas
- Higher production: 20-30% more than Seattle
- Avista territory: Higher rates than Western WA
- Better economics: Sun + higher rates
Low Electricity Rates Challenge
Washington has some of the lowest electricity rates in the country (thanks to hydropower). This affects solar economics:
- Lower savings per kWh: Than high-rate states
- Longer payback: 8-12 years typical
- Sales tax exemption helps: Offsets low rates
- Environmental value: Often the primary motivation
The Bottom Line
Is Washington Good for Solar?
Washington is better than expected for solar:
- Full net metering: Excellent policy
- Sales tax exemption: ~10% savings on purchase
- Property tax exemption: Additional benefit
- BUT: Low electricity rates mean slower payback
Best Candidates for Washington Solar
- Eastern Washington: Better sun and higher rates
- Environmental priority: Beyond just economics
- Higher electricity bills: $100+/month
- Good roof: South-facing, minimal shading
- Long-term homeowner: Plan to stay 8+ years
Challenges to Consider
- No federal credit for purchases: As of 2026
- Low electricity rates: Slower savings accumulation
- Winter production: Significantly reduced
- No state tax credit: No income tax means no credit
Questions to Ask Installers
- What production should I expect for my specific location?
- How do my utility's rates affect payback?
- What's my realistic payback period given low rates?
- How does a PPA compare to purchasing in Washington?
- Is battery storage worth it for my situation?
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