Solar Incentives & Battery Rebates
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Thinking about installing solar on your home or business? Incentives can reduce the net cost of your system and increase your long-term savings.
At Cascadia Solar, we help you take full advantage of Washington State solar incentives. Our team acts as your incentive concierge, guiding you through your options and handling the paperwork for you.
Want to see what savings you qualify for? Call 360-531-6163 today to schedule a free, no-pressure consultation.
Residential Solar Incentives
Net Metering
Net metering is a billing arrangement that allows you to earn utility credit by exporting the excess power your panels produce to the grid. Net metering incentives vary by state, but in Washington, you’re credited at the full retail rate of electricity.
Here’s how it works:
- When your solar panels produce more electricity than you need, the excess is automatically sent to the grid, and you receive a credit on your bill.
- Those credits are automatically applied to your next bill and help cover the electricity you draw from the grid when your solar panels aren’t producing power, like at night.
- Your credits roll over from month to month, so you can bank credit in the summer and use it in the winter when there’s less sunlight and your solar production drops.
Is Net Metering Going Away in Washington?
There are no current plans to eliminate or change net metering in Washington, but that could change. If you want to lock in the 1:1 rate that’s currently available, your safest bet is to go solar sooner rather than later.
PSE’s Flex Batteries Program
Puget Sound Energy offers up to $1,000 to homeowners who install an eligible battery storage system and enroll in the Flex Batteries Program. If you qualify for Enhanced Incentives, you can save up to $10,000. Check out our full guide to learn how it works and see if you qualify for Enhanced Incentives.
Tesla Powerwall Rebate
Tesla is currently offering a $1,000 rebate to homeowners who install a Tesla Powerwall 3. You must order your battery by March 31, 2026 and install it by September 30, 2026 to qualify.
Renewable Energy Sales Tax Exemption
There’s no sales tax on solar panels in Washington. Sales tax is typically 6.5% in Washington, and Jefferson County imposes an additional 2.6% sales tax, which means the solar sales tax exemption could save you nearly 10% on your solar installation.
Commercial Solar Incentives
Clean Electricity Investment Tax Credit (48E)
The Clean Electricity Investment Tax Credit is worth 6% of your total investment in a qualifying clean energy technology, including solar panels and battery storage. If your project meets the prevailing wage and apprenticeship requirements, your credit is increased by up to 30%.
To qualify, construction must begin by July 4, 2026 and finish within four years or complete construction by December 21, 2027.
MACRS Depreciation & Bonus Depreciation
Businesses can recover the cost of a solar energy system through accelerated depreciation. Most systems qualify for 5-year MACRS depreciation, and under current federal policy, many projects are also eligible for 100% bonus depreciation. This allows businesses to deduct a significant portion, or potentially the full cost, of the system in the first year, improving cash flow and overall return on investment.
Net Metering for Businesses
Net metering is a utility billing agreement that allows you to trade power with the main electric grid. When your solar panels produce more electricity than your building needs, the excess is sent to the grid, and you’re credited at the full retail rate of electricity.
Renewable Energy Sales Tax Exemption
Commercial solar power systems smaller than 100 kW AC are exempt from sales tax in Washington state. Sales tax is typically 6.5% in Washington, and Jefferson County imposes an additional 2.6% sales tax, which means the solar sales tax exemption could save you nearly 10% on your commercial solar installation. We’ll handle all the necessary documentation with the Washington State Department of Revenue to ensure you benefit from this tax break.
Have Questions? We’re Here to Help!
Washington solar incentives make going solar more affordable, but they can be confusing. Cascadia Solar is here to help. If you have questions about what’s available and whether you qualify, give us a call. We are always happy to answer questions and help you on your solar journey!
Disclaimer: The information on this page is provided for informational purposes only. We are not a tax advisor and always recommend speaking with a professional tax advisor about your specific situation.