2024 Washington State Solar Incentives

Discover the complete list of Washington State solar incentives for 2024. Uncover rebates, tax credits, and programs to make solar more affordable.

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    A Complete List of Washington State Solar Incentives for 2024

    Welcome to our overview of the 2024 Washington State solar incentives! We are committed to keeping our clients up to date on the most recent solar incentives and policies as a dependable supplier of solar solutions in Washington State.

    In this guide, we will provide you with all the information you need to know about the Washington solar incentives for 2024 and show you how to take advantage of them to save money and help the environment. Let us get going!

    home with solar panels

    Sales Tax Exemption For Solar Installations

    Washington state has a sales tax exemption for solar installations. Effective July 1st, 2019, customers are able to gain all the benefits of installing and owning their own solar array, without paying any sales tax on the purchase and installation costs for systems that qualify. 

    The exemption applies to systems that generate all the way up to 100 kilowatts AC of electricity and is available all the way through December 2029. Larger systems that generate somewhere between 101-500 kilowatts AC can qualify for a 50% sales tax exemption after January 1st, 2020.

    For an average home in the US, they can offset its entire energy use with a system of just 5 kilowatts. With a project of that size, homeowners are poised to save $2,000+ on the purchase and installation costs when they decide to go solar. That’s roughly an 8% average savings overall!

    Source: Washington Department of Revenue

    30% Federal Solar Incentives

    Good news for this incentive. The Inflation Reduction Act of 2022 extends the 30% federal tax credit until 2032, decreasing to 26% in 2033, and dropping to 22% in 2034 before finally disappearing entirely in 2035 unless there is an action taken again by Congress to extend it. This new law supersedes the previous one that would expire this incentive in 2024.

    How Does the ITC Work?

    The Investment Tax Credit (ITC) works by giving a 30% of the total cost back to you in the form of federal tax credits. For example, if your system costs $20,000, you will earn $6,000 back in tax credits.

    What happens if I have more tax credits than tax liability?

    That’s no problem. You will not get a cash refund, instead, the remaining credits will be applied to the next tax year.

    Year Residential Commercial
    Now - 2032 30% 30%
    Year 2033 26% 26%
    Year 2034 22% 22%
    Year 2035 0% (Expires) 0% (Expires)

    WA Net Energy Metering

    One of the biggest concerns with solar power is the fact that the sun is not always out. You may ask yourself, how can solar offset my use when I mainly use energy when it is dark? Living in the Pacific Northwest, I know this can be a top concern for consumers as the days get shorter and shorter. The answer to year-round solar production is net energy metering.

    graphic explaining washington state net energy metering

    Net energy metering is a process that allows system owners to sell their excess energy generated back to the grid. Under this Washington state solar incentive, the utility issues a credit for energy that is added to the grid, which the owner can use later to redeem that amount of energy from their provider.

    How Does NEM Work in Washington State?

    In other words, while you are gone all day, your solar system is banking energy credits for you to use when you get home. Some states will only offer a partial credit for your excess generation, but in Washington, utilities offer a one-to-one credit for this process so that, annually, you can use as much as you produce for free!

    For example, let’s say that you use 800 kilowatt-hours (kwh) of energy in June (pretty typical usage for the area). If your solar system produces 1200 kwh, you bank 400 credits with your utility that month. Continue that trend through September, and you will have built up 1600 kwh of use that will roll over to the winter months. 

    These credits will supplement the solar generation in the shorter days, reducing your utility bills all-year-round! However, heads up. They do reset each year to 0 credits so it’s best to size your system perfect; not undersizing or oversizing.

    MACRS for Solar (Commercial Only)

    MACRS for Solar is a depreciation system that is used for tax purposes. Depreciation is an income tax deduction that allows a business to recover some of the cost of a tangible purchased asset over time. Qualifying solar equipment is eligible for a cost recovery period of 5 years.

    The guidelines will allow a business owner to depreciate up to 85% of the total cost of the system of their books over that time, significantly decreasing their tax liability and how long their payback period will be. 

    Read More: MACRS Solar 101

    The Rural Energy for America Program, or REAP, offers grants to cover up to 25% of the system cost of your solar energy system, or loan guarantees of up to 75% of the total eligible project costs. This grant is only available for agricultural producers and rural small businesses and is a great way to reduce operating costs.

    For more information and to find out about applying for one of these grants, please read our Guide to REAP Grant.

    REAP Eligibility

    • Agricultural producers with at least 50% of gross income coming from agricultural operations
    • Businesses in eligible rural areas
    • Agriculture producers may be in rural or non-rural areas

    Keep in mind, that “small” is defined by the SBA depending on your NAICS code, and can appear quite “large.” We can help you determine if you meet all the REAP Qualifications.

    Agricultural producers and rural small businesses are eligible to receive up to $20,000 in grant money through their Rural Energy for America Power Program (REAP).

    We Offer Free Grant Writing

    We in-house writing the grant to ensure you have the best possible opportunity to be awarded. This costs nothing to you. We work diligently to secure business grant funding for many projects in a competitive system.

    You may also decide to write the grant yourself. Some larger organizations have their own teams of grant writers and prefer that. We will still assist when called upon to provide consultation.

    Is Solar Worth It in Washington State?

    While going rooftop solar may not be for everyone, with the incentives available to both home and business owners in Washington, we see it make sense to more and more consumers every day! Let us help you determine whether it may be a good fit for your lifestyle and situation. We specialize in getting you the maximum savings possible given available incentives.

    Find out how much we may be able to save you, by giving us a call at (360) 313-7910 or by filling out a free consultation form to have one of our consultants reach out.

    Read More: Are Solar Panels Worth it in Washington State?

    Ready for Next Steps?

    Sunbridge Solar can assist you if you are curious to find out more about how solar energy can help your home or business in Washington State. For years, our team of solar experts has been creating and putting in place unique solar solutions for Washington residents and companies.

    Since every property is different, we offer free consultations to go over your particular energy requirements and address any other questions you might have. We will assess your property, determine your energy objectives, and give you an estimation of the costs and savings associated with switching to solar power during the consultation.

    Simply call us or complete a form on our website to set up a consultation. Take the first step toward a cleaner, more sustainable energy future with the assistance of our team.

    Lura Kidner-Miesen
    Lura Kidner-Miesen
    I highly recommend Sunbridge Solar. I was very happy with their product, customer service, installation team, and support.
    Karen Driscoll
    Karen Driscoll
    I highly recommend Sunbridge Solar. We received 3 bids. The reason we chose Sunbridge is 1. The reasonable price. 2. Local company. 3. No sales pressure and great product knowledge. Jim our salesperson and Haley our product manager guided us through the process and kept us informed every step of the way. If we had questions, they got back to us within 24 hours. Matt and the rest of the install team were hard working, efficient, friendly, and great communicators. Sunbridge Solar takes care of all the permitting. They coordinate with the utility company (and the cost of the new meter is included in the contract). No hidden costs! We have hired many contractors for a variety of home improvements over the years. None have measured up to the quality of work and customer service we received from Sunbridge Solar.
    Michael Hubbard
    Michael Hubbard
    We could not be happier with Sunbridge Solar and their excellent sales, planning and installation staff. When we had some early communication issues, Jordan, Justin and Sean addressed and resolved them. The installation was a lot of work, partly due to our topography; but Garret and team addressed it with zeal and friendliness, explaining all the was occurring and ready to answer any questions. We likely cannot say enough in a sincere recommendation; but assure you of first-rate service.
    Calvin Mattson
    Calvin Mattson
    Sunbridge was one of three solar companies we interviewed before settling on Sunbridge. If you are in the process of interviewing, be aware that Sunbridge uses top shelf components. The award winning panels and Enphase microconverters are noticeable superior. This is our second house that we've installed solar. These panels are superior even for generation on cloudy days. Be sure and ask for Rachel as she was much more dialed into the industry than the other companies we interviewed.
    Trevor Taggart
    Trevor Taggart
    We had been looking to go Solar for the past 9 years but the costs did not add up enough to take the plunge. A friend of ours recommended Sunbridge Solar so we decided it was time to give it another look. Rachel answered the call and showed up shortly after to start the process. Between collecting power bills, planning the system, and coordinating with all applicable parties communication was great every step of the way. The installers came out and finished within 2-days and over the course of the next 10 days final inspection and installation of our bi-direction meter by the power company. We are extremely happy with the results and with an environmental conscience glad to know we are reducing our dependence on "the grid". Finally once all had been up and running Rachel came back to do a walk-through of the entire system and help streamline our use of the 'Enlighten' app to ensure we were set up correctly to also receive automatic alerts 'if' the system runs into any issues. Thanks again for such a great experience!!
    Gregg R
    Gregg R
    The entire process of getting solar on our house with SUNBRIDGE was professional and efficient. Our point of contact, Justin, was super responsive to probably too many questions and texts that I sent. The install team, led by Matt, inspired confidence with their communication and expertise. Matt installed our car charger too and had really helpful input as to placement which we are really appreciative of and happy with. Haley as the overall coordinator was also excellent, professional, and kind. If you are considering Solar you can do no better than going with SUNBRIDGE.
    harry warren
    harry warren
    My first experience with Sunbridge Solar and SEAN was great! They were super quick to answer my questions and really friendly. SEAN was really knowledgeable and explained things in a simple way that made everything easy to understand. I love my new solar setup and would definitely tell anyone thinking about solar to check out Sunbridge Solar and SEAN!
    Mark Johansen
    Mark Johansen
    Sunbridge Solar did an excellent job installing my 26 panel 10.66Kw system on our home in SE portland. I obtained quotes from 4 different companies including Tesla. In the end Sunbridge was the best value and they had the most sensible plan for my roof. Everyone I worked with from my point man Justin, design&measurements Doug, coordinator Haley, electricians Matt & Matt, and the entire install crew, were all very helpful, professional, courteous. As of today my system has been active and producing electricity for 2 months now and I love it. I would absolutely do business with Sunbridge again and recommend them to anyone needing Solar. Thanks for the rooftop system Sunbridge!
    Vance Berry
    Vance Berry
    Sean was incredibly helpful. He was generous with his time, making us comfortable with how the system worked, and is obviously passionate about this work. Thanks, Sean, for going above and beyond!
    Steve Skinner
    Steve Skinner
    All staff - sales, installers and office were very professional, friendly, and helpful. We are extremely happy with final product and would recommend Sunbridge Solar to everyone.
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