Is Solar Worth It in Washington in 2026?
Washington is a paradox for solar shoppers. The state sits at a northern 47.4°N latitude with a cloudy reputation, yet its electricity is some of the cheapest in the country — largely thanks to hydropower. Cheap electricity is good for your wallet, but it's the one thing that makes solar payback slower almost everywhere, because every kilowatt-hour your panels replace was already inexpensive. This is not Florida or Arizona, where high rates and blazing sun make the math easy.
2026 adds a second complication: the 30 percent federal tax credit that used to offset a big chunk of a Washington install ended for systems completed after December 31, 2025. What's left is a state sales tax exemption, decent (not great) production around Puget Sound, and a net-metering program genuinely in flux at the state's largest utility. Solar can still work here — especially for high-usage homes with a good roof and a utility that still offers full-retail net metering — but it pays back slower than in most of the country. This page gives you Washington's actual figures.
Washington Electricity Prices Have Doubled Since 2005
Solar is a bet on future electricity prices: every kilowatt-hour your roof makes is one you don't buy from the utility. Washington's rates are low in absolute terms, but the trend matters just as much as the starting point. Here's the history, from federal EIA data.
Full Washington electricity price data (1990–2025)
| Year | Washington (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 4.4 | 7.8 |
| 1991 | 4.4 | 8.0 |
| 1992 | 4.5 | 8.2 |
| 1993 | 4.6 | 8.3 |
| 1994 | 5.0 | 8.4 |
| 1995 | 5.0 | 8.4 |
| 1996 | 5.0 | 8.4 |
| 1997 | 5.0 | 8.4 |
| 1998 | 5.0 | 8.3 |
| 1999 | 5.1 | 8.2 |
| 2000 | 5.1 | 8.2 |
| 2001 | 5.7 | 8.6 |
| 2002 | 6.3 | 8.4 |
| 2003 | 6.3 | 8.7 |
| 2004 | 6.4 | 9.0 |
| 2005 | 6.5 | 9.5 |
| 2006 | 6.8 | 10.4 |
| 2007 | 7.3 | 10.7 |
| 2008 | 7.5 | 11.3 |
| 2009 | 7.7 | 11.5 |
| 2010 | 8.0 | 11.5 |
| 2011 | 8.3 | 11.7 |
| 2012 | 8.5 | 11.9 |
| 2013 | 8.7 | 12.1 |
| 2014 | 8.7 | 12.5 |
| 2015 | 9.1 | 12.7 |
| 2016 | 9.5 | 12.6 |
| 2017 | 9.7 | 12.9 |
| 2018 | 9.8 | 12.9 |
| 2019 | 9.7 | 13.0 |
| 2020 | 9.9 | 13.2 |
| 2021 | 10.1 | 13.7 |
| 2022 | 10.3 | 15.0 |
| 2023 | 11.0 | 16.0 |
| 2024 | 11.9 | 16.5 |
| 2025 * | 13.1 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Washington residential electricity averaged about 13.1¢ per kWh in 2025 (EIA preliminary), up from roughly 6.5¢ in 2005 — a full 100 percent increase over 20 years, with the last decade alone climbing near 3.7 percent a year. That's a faster pace than the sticker price suggests, even though Washington stays well below the national average. Hydropower keeps a floor under how cheap electricity gets here, but it hasn't stopped rates from climbing as infrastructure, wildfire mitigation, and transmission costs get built into what utilities charge. A homeowner planning to stay 15+ years should expect today's 13.1¢ to look cheap in hindsight, the way 6.5¢ looks cheap today.
The Washington Sun, Month by Month
Panels care about sun angle and day length, not air temperature, and Washington's northern latitude (47.4°N for the Seattle area) means a much bigger swing between summer and winter production than a southern state sees. Long, high-angle summer days are genuinely strong for solar; short winter days and Puget Sound cloud cover are genuinely weak.
Washington monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 43 |
| Feb | 68 |
| Mar | 92 |
| Apr | 113 |
| May | 125 |
| Jun | 117 |
| Jul | 134 |
| Aug | 131 |
| Sep | 108 |
| Oct | 75 |
| Nov | 51 |
| Dec | 39 |
| Year | 1097 |
Source: NREL PVWatts typical-year estimate (Seattle), per installed kW at latitude tilt.
The practical takeaway: a Seattle-area system produces around 1,096 kWh per installed kilowatt per year — a real number, but noticeably below what the same system would generate in California or Florida. Production concentrates heavily into May through August. If your household's usage is flatter across the year (no big AC spike, since much of western Washington doesn't need heavy summer cooling), net metering is what makes the annual math work: it lets your strong summer production bank credits you draw down through the gray months.
What Solar Costs in Washington in 2026
Most residential installs in Washington run about $2.55 to $3.20 per watt, roughly in line with national averages. A typical 7 kW home system costs about $18,000 to $21,000 gross. With the federal credit gone, that quote is close to your actual out-of-pocket cost, minus the sales tax exemption below.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $12,800 to $16,000 | ~5,480 kWh/yr (~$60/mo at 13.1¢) | Smaller home, lower usage |
| 8 kW | $20,400 to $25,600 | ~8,770 kWh/yr (~$96/mo) | Average Washington home |
| 12 kW | $30,600 to $38,400 | ~13,150 kWh/yr (~$144/mo) | Large home, electric heat or EV charging |
Washington's sales and use tax exemption (equipment and labor, systems up to 100 kW AC) applies upfront at the point of sale — your installer handles a Buyer's Retail Sales Tax Exemption Certificate, so you never pay the tax. Depending on system size and local rate, that typically saves $1,000 to $2,000+. Get at least three quotes; price per watt varies by region and roof complexity.
Estimate Your Washington Payback
The calculator below is set to Washington's average electricity rate and Seattle-area production. Enter your own monthly bill to see an estimated system size, payback period, and 25-year savings. Washington rates have climbed about 3.7 percent a year over the last decade — a reasonable starting inflation value, though you should drag it to test your sensitivity to future rate hikes.
Washington Solar Incentives That Still Exist in 2026
Here's what survived into 2026 and what didn't.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit ended for installations completed after December 31, 2025, no phase-out. If a quote still assumes it, that installer hasn't updated their materials.
- Still here — the sales and use tax exemption: Solar equipment and labor are exempt from state and local sales/use tax for systems up to 100 kW AC (50 percent for 100–500 kW), through December 31, 2029. Applied at the point of sale, not a rebate you file for later.
- No state income tax credit: Washington has no state income tax at all, so there is no state credit to claim — the sales tax exemption is the state's main lever.
- No residential property tax exemption: Washington does not exempt added home value from your assessment. The only solar property tax break in state law (RCW 84.36.680) covers utility-scale facilities of 10+ megawatts — far beyond any rooftop system.
- Partially — leases and PPAs: Third-party-owned systems can route through a separate federal business credit (48E) through 2027, but it belongs to the leasing company. It might lower your lease payment; it might not.
- Scattered local programs: A few municipal utilities and co-ops offer small per-watt rebates, and the state's Clean Energy Fund and low-income solar grants exist, but these mostly target community-scale projects, not a typical rooftop buyer.
Net Metering in Washington — and Why the Clock Matters Right Now
Net metering is what lets your summer solar surplus offset your winter usage: when your panels produce more than your home needs, the credit banks at your utility and you draw it down later instead of buying power at full price.
Washington runs one of the better net-metering programs in the country on paper. Under Chapter 80.60 RCW, utilities including Puget Sound Energy, Avista, Pacific Power, Seattle City Light, and Snohomish PUD credit exported solar at the full retail rate, one-to-one, with no annual reset on most programs — credits simply roll over. That's a strong deal next to states that have already moved to lower "avoided cost" export rates.
But the statute has a cap, and it matters: RCW 80.60.020 lets a utility close full-retail net metering to new applicants once solar exports reach 4 percent of that utility's 1996 peak demand. Puget Sound Energy — the state's largest investor-owned utility — has already exceeded that threshold. PSE's current tariff (Schedule 150) stays open for new applicants only until regulators approve a replacement rate, expected in 2026 or 2027, informed by a legislatively mandated Value of Solar and Storage study concluding October 2026. The new export rate will likely land closer to avoided-cost pricing than to full retail.
In practice: interconnect now and you generally lock in today's full-retail rate for the life of that agreement; wait until after PSE's replacement tariff, and you may start under a lower rate from day one. This is a specific, dated transition already underway at Washington's biggest utility, not a vague "incentives always shrink" warning. If you're a PSE customer and solar already makes sense for your home, there's a real case for not waiting. On a different utility, ask directly whether it has hit its own cap.
Washington Roofs, Weather, and Panel Placement
Western Washington's marine climate means moss, moisture, and shade from mature trees are bigger concerns for solar than wind or hail. A roof with heavy tree cover loses more production here than the same shade would cost in a sunnier state, simply because there's less surplus sun to spare. Ask your installer to run a shade analysis, not just a satellite estimate.
Snow load is a real design factor east of the Cascades; west-side installs near Seattle rarely see this issue. Confirm your installer pulls a permit and check your electrical panel's capacity, since older Washington homes sometimes need an upgrade for a new solar-plus-inverter setup.
How to Go Solar in Washington
Work through these steps before signing a contract.
- Pull your last 12 power bills and calculate your average monthly usage — Washington's flatter load pattern makes an annual average more meaningful than a single month.
- Confirm your roof gets meaningful south, east, or west sun exposure; tree shade costs more here than in a sunnier state.
- Check your utility's net-metering status directly — ask whether it has hit its 4 percent RCW 80.60.020 cap, and if you're on PSE, ask about the Schedule 150 timeline.
- Get at least three quotes with 2026-accurate math — no installer should model the federal 30 percent credit into your numbers.
- Confirm your roof has 10 to 15 years of life left, or replace it first.
- Compare each quote's payback, using both a full-retail and a conservative export-rate scenario, against how long you plan to stay in the home.
For how solar panels work, sizing, and buying versus leasing in general, read our main solar panels guide — this page focuses on what's specific to Washington.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 preliminary). Production: NREL PVWatts. Net metering law: Chapter 80.60 RCW and the WA UTC overview. PSE tariff status: PSE Customer Connected Solar FAQ. VOSS study: WA Dept. of Commerce, Net Energy Metering. Sales tax exemption: WA DOR special notice and RCW 82.08.962. Property tax: RCW 84.36.680. We review these figures every six months.