The Ultimate Guide to Washington Solar Tax Credits & Incentives in 2026
Spoke ArticleWashington2 min readVerified Q1 · 2026

The Ultimate Guide to Washington Solar Tax Credits & Incentives in 2026

SBI Editorial DeskUpdated Q1 · 20263 sections

Washington State offers an incredible stack of incentives that make solar highly affordable right out of the gate. By combining a 100% state sales tax exemption with the federal tax credit, Evergreen State homeowners enjoy some of the lowest net installation costs in the country.

01

100% Solar Sales Tax Exemption

This is a massive financial advantage. Washington State legally exempts solar energy systems (under 100kW) from all state and local sales taxes. Because Washington municipalities often have combined sales tax rates approaching 9% or 10%, this exemption provides an immediate, upfront discount of thousands of dollars on the gross cost of your equipment and installation.

02

The 30% Federal Investment Tax Credit (ITC)

After taking your sales-tax-free price, you can apply the 30% Federal ITC. This program allows you to deduct 30% of your total gross system cost directly from your federal income taxes. If your system costs $26,000, you are eligible for a $7,800 federal tax credit. The credit rolls over to the following year if your tax liability cannot absorb the full amount immediately.

03

Net Metering & Grid Resiliency

Washington utilities are mandated to offer 1:1 retail net metering. Any excess power you generate during long summer days is credited to your utility account at the full retail rate. Furthermore, homeowners looking to protect their homes against winter storms can include a battery storage system (like the Tesla Powerwall), which is also fully eligible for the 30% Federal Tax Credit.

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