Solar Incentive Changes
Could solar incentive changes affect your purchasing power? In this installment, we’ll discuss federal legislative updates and how you can still save on solar installation in Central Washington before remaining incentives disappear.
Solar rebates eliminated
· Residential Solar Investment Tax Credit (ITC)
· Solar for All Grants
· Clean Energy Tax Credits
· Commercial Solar Tax Credits
· Rural Energy Grants (paused)
Net metering credit changes indicated
· Signs indicate potential solar credit value reductions
How you can still save on solar
· WA State sales tax exemption
· Secure net metering rates before changes
Changes to Federal Solar Incentive Programs
The current administration has repealed or significantly scaled back many popular programs, including:
Residential Solar Investment Tax Credit (ITC)
The 30% tax credit for residential solar panel and battery storage installation expired in December 2025.
Solar for All Grant Program
The EPA's authority to fund the $7 billion "Solar for All" grant program, a key component of the Inflation Reduction Act (IRA) intended to make solar more affordable for low-income households, has been rescinded.
Clean-Energy Tax Credits
In July 2025, solar and wind tax credits were terminated, requiring the Treasury Department to phase out clean energy incentives within 45 days.
Commercial Solar Tax Credits
This rapidly disappearing tax incentive currently requires that solar energy systems for businesses be under construction by June 2026 or in service by December 2027. Businesses must also comply with stricter safe harbor rule requirements and pass an eligibility screening for foreign-influenced entities.
USDA Rural Energy for America (REAP) Grants
REAP grant approvals remain permanently paused pending program revisions to ensure compliance with an executive order targeting wind and solar subsidies and could also be impacted by the pending Farm Bill.
Potential Net Metering Policy Updates
Net metering programs give home and business owners the opportunity to earn credits for unused solar energy they send back to the grid, accelerating return on investment and delivering lasting savings. Current rates include a 1:1 credit value. However, indications from the Washington State legislature and Puget Sound, the region's largest energy provider, signal potential changes that could significantly alter this exchange rate and limit consumer benefits.
What Incentives are Still Available for Solar Installation in Central Washington?
Opportunities still exist to save on solar; however, timing is essential. Don’t miss out on:
WA State sales tax exemption
Save 6.5% on solar energy systems up to 100 kW installed before December 31, 2029.
Higher net metering credit exchange rate
You can still secure a 1:1 net metering credit exchange rate by installing solar panels before changes take effect.
Modified Accelerated Cost-Recovery System (MACRS) depreciation
Reduce tax liability and speed your return on investment by depreciating your commercial solar system's value over 5 years rather than using traditional straight-line depreciation.
You can count on our trusted solar company to keep you up to date on available incentives and proposed changes, helping you take advantage of solar savings opportunities before they expire. We strive to make solar accessible to all, finding ways to help you enjoy the benefits of solar within your budget.
Take Advantage of Solar Incentives Before They Go Dark
Don’t let solar incentive changes stop you from achieving your energy security goals. Find out how you can save on solar in Cle Elum, Ellensburg, Grandview, Granger, Kennewick, Kittitas, Moxee, Naches, Pasco, Prosser, Richland, Selah, Sunnyside, Toppenish, Wapato, White Swan, Yakima, and Zillah, with help from Ellensburg Solar. Contact us at 509-929-2728 to schedule an energy assessment and solar installation estimate today.