Washington residents can get the retail rate when they sell excess solar power to the local grid.
Jump to insightA typical residential solar panel system costs $18,957 in Washington.
Jump to insightEligible borrowers may finance solar panels and other energy upgrades through FHA or VA programs.
Jump to insightSolar tax breaks in Washington
Washington makes going solar a little more affordable by exempting qualifying solar energy systems from state and local sales tax. For eligible residential systems, the exemption generally applies through the end of 2029.
WSHFC Sustainable Energy Program
The Washington State Housing Finance Commission’s Sustainable Energy Trust helps finance qualifying energy-efficiency and clean-energy projects, including solar.
However, the program is mostly designed for multifamily properties, nonprofits, developers and larger projects rather than homeowners installing solar on a single-family home.
Loan amounts, interest rates and eligibility requirements depend on the project.
Additional solar incentives in Washington
The following incentives do not apply to most homeowners.
| Program type | Amount | Eligible solar equipment | Applicable sectors | Administrator | |
|---|---|---|---|---|---|
| Energy Efficiency and Solar Grants | Grant | $250,000 per entity | Solar panels | Local government, schools, state government, tribal government | Washington State Department of Commerce |
| Evergreen Sustainable Development Standard for Affordable Housing | Green building incentive | Varies | Solar panels, solar water heat | Construction, local government, state government, installers/contractors, multifamily residential, integrators | Washington Department of Commerce |
| Tax Abatement for Solar Manufacturers | Industry recruitment/support | 43% reduction of state’s business and occupation (B&O) tax | Solar panels | Industrial | Washington State Department of Revenue |
Net metering in Washington
Net metering lets Washington homeowners earn bill credits when their solar panels produce more electricity than they use and send the extra power to the grid.
Under traditional net metering, those credits are valued at the retail electricity rate and can help offset the cost of electricity you use later. Credits roll over from month to month, but any unused balance expires on March 31 each year without a cash payout.
As for how long it takes to get set up, Daniel in Auburn reported that his project took about three months from initial order through installation and utility interconnection.
What could change with net metering?
Washington requires utilities to offer traditional retail-rate net metering until they reach a state-set participation threshold or June 30, 2029, whichever comes first. After that, a utility can continue offering retail-rate credits or switch to a different compensation structure.
Some utilities have already reached that threshold. Puget Sound Energy, for example, has exceeded it but continues to offer its current net-metering program while it evaluates what comes next.
How much are solar panels in Washington?
Before any financial incentives, solar panel costs in Washington typically range from $13,370 to $26,740.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in Washington is 7.1 kW. You might need a larger or smaller system, depending on your average household energy usage. The table below shows average solar panel costs by system size in Washington and select cities within the state.
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide | $13,370 | $16,044 | $18,718 | $21,392 | $24,066 | $26,740 |
| Seattle | $13,768 | $16,521 | $19,275 | $22,028 | $24,782 | $27,536 |
| Spokane | $14,951 | $17,941 | $20,931 | $23,921 | $26,911 | $29,901 |
| Tacoma | $13,705 | $16,446 | $19,188 | $21,929 | $24,670 | $27,411 |
Federal mortgage options for solar panels
Beyond the now-expired tax credit, a few standing federal programs can still help Washington homeowners offset the cost of going solar:
- FHA Energy Efficient Mortgage: Finance cost-effective energy upgrades through an FHA-insured mortgage. A home energy assessment is required, and expected savings must cover the upgrade cost. Separate FHA rules apply to solar and wind systems.
- VA Energy Efficient Mortgage: Eligible VA borrowers can add up to $6,000 for approved energy upgrades. For costs over $3,000, projected monthly savings must exceed the added mortgage payment.
Find solar companies in Washington
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Washington’s top solar companies to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Blue Raven Solar | Learn More | 3.2 |  | Cash, loan, lease, PPA | 2014 |
 ION Solar | Learn More | 3.3 | | Cash, loan | 2013 |
 ShopSolar | Learn More | 4.5 |  | Cash, loan | 2018 |
FAQ
Can I get free solar panels in Washington?
There are no programs for free solar panels that we’re aware of in Washington. You can lease or enter a PPA with little to no upfront costs, though.
» FREE SOLAR PANELS: Are they really free?
What happened to the Solar for All program?
Washington’s Solar for All program — backed by a $156 million federal grant intended to expand access to solar for income-qualified households and communities — is currently paused. The U.S. Environmental Protection Agency moved to terminate Solar for All grants nationwide in August 2025, and the Washington Department of Commerce paused its program until further notice. Washington and other grant recipients have challenged the loss of funding in federal court.
If funding becomes available again, Washington’s program was designed to help:
- Homeowners: Provide no-cost solar installations for income-qualified single-family homeowners
- Renters and communities: Offer access to no-cost community or shared solar
- Tribal communities: Support co-developed solar projects serving residents
- Multifamily housing: Help affordable housing properties prepare for and access solar
For now, the program is not operating and there is no active timeline for it to launch.
Is my HOA allowed to restrict solar panels?
Homeowners associations (HOAs) in Washington are not legally permitted to prevent the installation of solar panels as long as certain conditions are met.
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan. Leasing or entering a power purchase agreement (PPA) is often cheaper upfront.
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Washington?
On average, Washington homeowners with solar panels avoid $33,367 in utility costs over 25 years. Even if you don't generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills. In Washington, solar panels usually pay for themselves within 15.63 years.
» EXPLORE: Where your solar savings go the furthest
How do I know if my house is a good candidate for solar?
For optimal sun exposure, it’s best to have plenty of unshaded roof space facing south or west. Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller, cheaper system.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels again. This will cost around $5,000 for a 19-panel setup.
What has Washington’s investment in solar been so far?
Total solar investments in the state amount to $2.3 billion, according to the Solar Energy Industries Association.
Bottom line
Washington has fewer direct residential solar incentives than some states, but its sales tax exemption and net-metering policies can still help reduce the cost of going solar. Although there aren’t as many incentives as some other states, these programs make going solar worthwhile for many Washington homeowners.
The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it's worth it for many homeowners. The table below shows solar costs vs. savings in Washington and two bordering states.
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Idaho | $16,992 | $28,320 | 6.3 kW | $2.83 | $7,664 |
| Oregon | $16,480 | $27,466 | 5.9 kW | $2.75 | $50,441 |
| Washington | $16,044 | $26,740 | 7.1 kW | $2.67 | $33,367 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, "Washington Programs." Accessed July 28, 2026.
- Washington State Housing Finance Commission, "Sustainable Energy Trust." Accessed July 28, 2026.
- Washington State Department of Commerce, "Evergreen Sustainable Development Standard." Accessed July 28, 2026.
- Washington State Legislature, "Governing Documents—Solar Panels." Accessed July 28, 2026.
- Washington Utilities and Transportation Commission, "Net Metering." Accessed July 28, 2026.
- Solar Energy Industries Association (SEIA), "Washington." Accessed July 28, 2026.
