Solar Financing in Washington
Lease vs. Buy vs. PPA — Complete financing guide for WA homeowners
Urgent tax credit deadlines
- Section 30D EV credit (up to $7,500) — expires June 30, 2026 (12 days left).
- Section 48E solar ITC safe harbor — construction must start by July 4, 2026 (16 days left).
Going solar in Washington? With electricity rates averaging 12¢/kWh and moderate solar resources, choosing the right financing option can save you $14,700 or more over 25 years. This guide breaks down every option available to Washington homeowners.
Avg Rate
12¢
per kWh
Solar Resource
Moderate
WA
Typical System
7kW
residential
Payback
~12.5 yrs
estimated
Solar Incentives & Tax Credits in Washington
Washington homeowners can take advantage of the following solar incentive programs:
Federal Solar Investment Tax Credit
30% federal tax credit via Section 48E for qualifying projects (leases, PPAs, commercial) that begin construction before July 4, 2026. The residential ownership credit (25D) expired December 31, 2025.
30% of system cost
Solar Sales Tax Exemption
Solar energy systems are exempt from Washington state sales tax (6.5% + local) through 2029.
Sales tax exempt
Washington State University Energy Program
WSU Energy Program and utilities offer limited rebates and advisory services for residential solar.
Varies
Net Metering in Washington
Washington requires net metering at the full retail rate for systems up to 100 kW under UTC rules.
✓ Washington exempts solar equipment from sales tax, saving you money at purchase.
Compare Financing Options in Washington
See how cash purchase, solar loan, lease, and PPA compare based on Washington's average rates:
Solar Financing Comparison for Washington
Based on 12¢/kWh electricity rate and a 7kW system
Cash Purchase
Pay upfront — maximum long-term savings
- Upfront Cost
- $14,700
- Monthly Savings
- $98/mo
- Tax Credit Eligible
- Yes
Solar Loan
$0 down — own the system over time
- Down Payment
- $0
- Monthly Payment
- $144/mo
- Net Monthly
- $-46/mo
- Tax Credit Eligible
- Yes
Solar Lease
$0 down — provider owns the system
- Down Payment
- $0
- Monthly Payment
- $91/mo
- Net Monthly
- $7/mo
- Tax Credit Eligible
- No
Power Purchase Agreement
$0 down — pay per kWh produced
- Down Payment
- $0
- Annual Savings
- $637/yr
- Tax Credit Eligible
- No
Estimates based on average Washington (WA) rates and system costs. For a personalized comparison, use our full financing calculator.
Lease vs. Buy vs. PPA in Washington
Buying (Cash or Loan)
Best for: Maximizing long-term savings and home value.
- You own the system and all electricity it generates
- Eligible for the 30% Federal Tax Credit (~$6,300 on a 7kW system)
- Increases home value by an average of 4.1%
- Highest 25-year savings: ~$14,700
- You handle maintenance (panels need little)
Solar Lease
Best for: Zero upfront cost with predictable payments.
- $0 or low upfront cost
- Fixed monthly payment (no surprise bills)
- Maintenance and repairs typically covered
- Not eligible for tax credits or incentives
- Lower 25-year savings (~$2,100)
- May complicate home sale (lease transfer)
Power Purchase Agreement (PPA)
Best for: Paying only for what you produce, $0 down.
- $0 upfront cost
- Pay a per-kWh rate (typically lower than utility)
- Provider owns and maintains the system
- Not eligible for tax credits
- Rate escalates 2-3% annually (read the contract)
- Lowest 25-year savings of the three options
Solar Financing FAQ — Washington
Is solar worth it in Washington?
Yes, solar is a worthwhile investment in Washington. With moderate electricity rates averaging 12¢/kWh and moderate solar resources, a typical 7kW system can offset most of your household electricity usage. The estimated payback period is 12-14 years, after which you enjoy more than a decade of largely free electricity. washington requires net metering at the full retail rate for systems up to 100 kw under utc rules is the main policy factor to verify with your utility.
What solar incentives are available in Washington?
Washington residents can claim the 30% Federal Solar Investment Tax Credit (worth $6,300 on a typical 7kW system). The state also offers Solar Sales Tax Exemption, Washington State University Energy Program. Washington exempts solar equipment from sales tax, saving you money at purchase.
Should I lease, buy, or get a PPA in Washington?
Buying your solar system (cash or loan) maximizes long-term savings and qualifies you for the 30% Federal Tax Credit. On a typical 7kW system in Washington, that's about $6,300 back. Buying yields roughly $14,700 in net savings over 25 years. Leasing or a PPA requires $0 down and includes maintenance, but you won't get tax credits and your 25-year savings will be much lower (around $2,100). If you can afford the upfront cost or qualify for a low-rate loan, buying is the clear winner in Washington.
How much does a solar system cost in Washington?
A typical 7kW residential solar system in Washington costs approximately $21,000 before incentives. After the 30% Federal Tax Credit (~$6,300), the net cost drops to about $14,700. Actual costs vary based on equipment quality, installer, roof complexity, and whether you add battery storage. Washington exempts solar equipment from sales tax, saving you money at purchase.
Does Washington have net metering?
Washington requires net metering at the full retail rate for systems up to 100 kW under UTC rules.
What is the solar payback period in Washington?
The typical solar payback period in Washington is approximately 12-14 years. With a net system cost of about $14,700 after the federal tax credit and annual electricity savings of roughly $1,058-$1,294 (based on 12¢/kWh), most Washington homeowners see full payback within 14 years and enjoy 11+ years of largely free electricity thereafter.
Related Solar Tools
Estimates are based on Washington average rates, system costs, and the 30% Federal Solar Investment Tax Credit. Actual savings vary by installer, equipment, roof, and utility policy.