Is solar worth it in Washington in 2026?

How Washington pays for your solar power

Net metering at the retail rate. Washington law (RCW 80.60) credits exports kWh-for-kWh against later use; as of Jan. 2026 neither Puget Sound Energy nor Seattle City Light has adopted a replacement rate.

In the calculator, 40% of your solar output is used at home at the retail price and the rest is exported at about 100% of retail, so each solar kWh is worth 100% of the retail price on average. Change it if your utility pays more or less. Method

State or utility incentive	What it is worth
State and local sales and use tax exemption for solar energy systems	100% exemption on equipment and installation labor for systems up to 100 kW AC, installation commenced through Dec. 31, 2029

How exports are credited

Washington’s net metering law is chapter 80.60 RCW. Under RCW 80.60.030, when a solar system exports more than the home draws in a billing period, the customer is credited for the excess kilowatt-hours and the credit appears on the next bill. In practice one exported kWh offsets one purchased kWh, so exports are valued at the customer’s retail energy rate. Any credit still unused on March 31 each year passes to the utility without payment. The law covers systems of up to 100 kW AC and applies to investor-owned utilities, public utility districts, municipal utilities and co-ops.

The threshold and what happens at it

RCW 80.60.020 requires each utility to offer net metering on a first-come, first-served basis until the earlier of two dates: June 30, 2029, or the point where net metered capacity reaches 4 percent of the utility’s 1996 peak demand. After that point a utility may adopt its own standard rate or tariff that departs from RCW 80.60.030. Investor-owned utilities need approval from the Utilities and Transportation Commission, which must act within one year of a filing, and consumer-owned utilities go through their own governing body. A new tariff applies to customers whose interconnection agreement comes after the threshold date, so earlier systems keep net metering.

The WSU Energy Program publishes each utility’s progress. Its table, with data through January 31, 2026, shows Puget Sound Energy at 132.25 percent and Seattle City Light at 92.57 percent of the capacity available, and both marked as not deviating from RCW 80.60.030. Several other utilities, including PacifiCorp, Franklin County PUD, Kittitas County PUD and Orcas Power & Light, are marked as having adopted a different rate.

Puget Sound Energy’s tariff sheet for Schedule 150 that could be opened for this page is a 2019 revision. It states the 4 percent limit as 179.2 MW. PSE can change Schedule 150 for new interconnections once its threshold is reached. A homeowner in PSE territory should confirm with PSE or the Utilities and Transportation Commission that Schedule 150 is open to the new application and whether a replacement schedule is pending.

Seattle City Light says it credits exports at the retail rate for systems under 100 kW, adds excess credits to the balance for future bills, and has “begun planning the next phase” of its net metering program. It has committed to at least six months of advance notice before any proposed change takes effect, and no effective date is given on its page.

State incentives in 2026

• Sales and use tax exemption. RCW 82.08.962 exempts equipment and installation labor for solar systems up to 100 kW AC from state and local sales tax when installation starts between July 1, 2019 and December 31, 2029. The section expires January 1, 2030.
• Federal credit. The 30% federal residential credit ended for systems installed after December 31, 2025.

The WSU Energy Program lists its Renewable Energy System Incentive Program as fully subscribed, so it is not counted as open. No other open state rebate was confirmed.

What it means for payback

Where net metering is still in force, exports are worth about what imports cost, so oversizing a system to cover annual use is less risky than in net billing states. The unused-credit reset on March 31 means a system sized well above annual use wastes the surplus. Because the law lets utilities move to a different rate once the threshold is passed, the main risk is timing: a system interconnected before a successor tariff starts keeps net metering terms, and one interconnected afterward may not.

Other rules worth knowing

• A customer pays the normal customer charge even in months with net generation (RCW 80.60.030).
• A utility may not add standby or interconnection charges unless the regulator or governing body finds direct costs that exceed the benefits (RCW 80.60.020).
• Meter aggregation with one additional meter on the same or a contiguous parcel is allowed on request.