Washington Solar Incentives Explained: Federal ITC, State Rebates & Net Metering

The 30 % federal ITC (Investment Tax Credit) remains the cornerstone of Washington solar incentives in 2025 but  it’s scheduled to phase down after this year. Systems installed and operating by December 31, 2025 can still claim the full credit Afterward, residential credit begins decreasing.

Secondary Incentives in Washington State

  • Sales‑tax exemption for solar equipment (systems < 100 kW): zero sales tax through December 2029; larger systems (101–500 kW) receive a 50 % tax break
     

  • PSE net metering (1:1) remains the gold standard in 2025. Homeowners are credited at full retail rate for every kWh of solar sent to the grid locking savings before rules shift
     

Average Cost & Payback in Washington

  • A 5 kW system costs around $12,425 after incentives. Expect a 9‑year payback, with ~$15,930 saved over 20 years
     

  • Larger systems (e.g. 9 kW) often outperform electricity usage, maximizing utility with even greater returns.
     

 

Washington DC Solar Incentives Breakdown

When digging into Washington, DC solar, incentives are among the most lucrative nationwide:

  • SREC prices hover between $435–$455 per credit in 2025 . A typical 6 kW system generating ~7 MWh annually nets ~$3,000/year.
     

  • The Solar Alternative Compliance Penalty (SACP) sets the SREC cap at $460 for 2025, tapering down each year
     

  • Property‑tax exemption in DC ensures solar value boost doesn’t lead to higher property taxes
     

  • “Solar for All” program offers free installs for qualifying low‑income households, offsetting up to $500 in annual utility costs
     

 

Why Jump on washington solar incentives NOW

  1. The federal ITC 30 % credit ends in 2025 missing the deadline means smaller savings.
     

  2. Net metering rates may drop post‑2025 capturing current 1:1 rates locks future value
     

  3. Electric rates are rising: PSE’s average residential bill rose from ~$80 (2020) to $122 (2025), projected to reach ~$130 next year. Solar means stable costs amid rising utility rates.

 

  1. DC’s SREC program continues generating strong annual returns, with early adopters earning ~$3k/year per system.

 

Structuring Your Solar Strategy

Federal Incentives

  • 30 % federal tax credit via the Clean Energy Credit
     

State & Local Financial Boosts

  • solar companies in washington dc often bundle rebates with installation
     

  • solar panel installation washington dc typically includes net‑metering setup
     

  • solar incentives washington encompass sales tax, rebates, and net metering
     

  • washington dc solar incentives include property‑tax exclusion + SREC stream
     

Economic Benefits

  • dc solar tax credit through ITC + local credits
     

  • washington dc net metering delivers retail‑rate credits
     

  • dc srec prices stay at a high $435–455/SREC
     

  • srec dc revenue stream for clean energy compliance
     

  • washington dc solar becomes more affordable with Solar for All

     

Conclusion 

Washington solar incentives are ripe for homeowners, businesses, and even low-income families in DC. With a strong combination of federal tax credits, state & utility rebates, net metering, and high SREC prices, the financial and environmental case for solar systems has never been stronger.

Contact Solar SME now to harness every bit of washington solar incentives available and start saving sustainably!

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