Net Energy Metering

For installed systems, Washington state has a net metering law (RCW 80.60.030) that lets customers of power companies offset their electricity consumption with the production from renewable energy system such as solar panels. Consumers may need to apply to their electricity power provider to obtain the credit for net metering. Many providers have forms on their websites.

The process is straightforward. Net metering customers can purchase electricity from their electricity provider when they need it and can send electricity generated by their solar panels back to the electric grid when they do not need it. A meter records both the electricity from solar panels that is delivered to the power company and the amount of electricity from the power company that they use, spinning forward when you are using electricity from your power company, and spinning backward when you are delivering electricity from your solar panels to the grid. Customers receive a credit if they produce more electricity than they use, or they are charged if they purchase more than the produce.

An electric utility shall make net energy metering available to eligible customer-generators on a first-come, first-served basis until the earlier of either: (i) June 30, 2029; or (ii) the first date upon which the cumulative generating capacity of net metering systems equals four percent of the utility's peak demand during 1996.  Electric utilities provide information to the WSU Energy Program concerning their progress on reaching the cumulative generating capacity available to net metering systems in their service territories and this information is updated and available on their website.

In accordance with the law, net metering credits expire on March 31 every year and credits from any excess electricity generation are “zeroed out”.

To learn more about Net Energy Metering, watch this May 10, 2023 webinar titled Net Energy Metering in Washington with  Washington Department of Commerce's Nora Hawkins, and Shane Frye, with SnoPUD, both Solar Washington Board Members.

Sales Tax Exemption

Benefits for installing solar panels include sales tax exemption from Washington State for qualifying solar equipment (ESS Senate Bill 5116). From July 2019 and through December 2029, equipment for solar energy systems smaller than 100 kilowatts is exempt from state and local sales and use taxes. There is also a 50 percent tax exemption available for larger solar energy systems that are between 101 and 500 kilowatts.  Different rules apply for systems 100 KW to 500 KW.  Customers must complete and provide a Buyer’s Retail Sales Tax Exemption Certificate to the seller.  Full details available on the Washington State Department of Revenue website.  

Federal Income Tax Credit

The Residential Clean Energy Credit equal to 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through December 31, 2025. The credit is not available for any property placed in service after December 31, 2025. 

See the IRS website for more information.

Local Incentives for Energy Efficiency

Many utilities offer incentives and rebates for energy efficiency upgrades that help their customers reduce their use of electricity. Review a comprehensive list of PUDs and utilities in Washington state. Check your utility’s website to find out what they have to offer.