✅ Federal Incentives
All federal benefits apply to entities in Washington.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. The Inflation Reduction Act (IRA) of 2022 increased the credit to 30% with no dollar limit.
⚡ Sales Tax Exemption
Washington exempts equipment for solar energy systems smaller than 100 kilowatts from state and local sales and use taxes, reducing upfront costs.
⚡ Property Tax Exemption
Washington offers a property tax exemption for solar energy systems, so installing solar does not increase your property's assessed value for tax purposes.
✅ Utility Incentives
⚡ Net Metering
Most utilities in Washington offer net metering, allowing solar system owners to earn bill credits for excess electricity sent back to the grid, typically at the full retail rate. Some utilities may have variations; for example, Grays Harbor PUD credits at 50% of retail.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits can receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
Washington combines federal incentives, sales and property tax exemptions, and supportive net metering policies to make solar energy a viable and attractive option for homeowners, businesses, and nonprofits. These incentives lower costs and improve financial returns for solar installations.