Washington Solar Incentive Programs

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Washington state offers a variety of incentives, rebates, and tax credits that make going solar even more affordable. Here are some of the incentives available to Washington home and business owners:

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. .

Solar Energy System Sales Tax Incentives:

Washington provides a sales tax exemption for purchasing machinery, equipment, and installation of solar energy systems.

Net Energy Metering:

Utility companies keep track of the amount of energy you produce and consume monthly. At the end of the month, your power company will subtract the amount of energy you produce from the amount of energy you consume, reducing your monthly power bill. Any additional energy credits you store will be carried over to your next month’s bill throughout the year.

Local Incentives:

Various local utility companies offer exclusive incentives for their customers.

Further information and programs can be found at the Programs.Dsireusa.org