Solar Incentive Changes
How could current solar incentive changes impact your access to solar power in East Washington? We’ll shed light on programs impacted by changing federal government legislation and how you can take advantage of savings on solar installation before existing incentives disappear.
Solar rebates no longer available
· Solar for All Grants
· Residential Solar Investment Tax Credit (ITC)
· Clean Energy Tax Credits
· Commercial Solar Tax Credits
· Rural Energy Grants (paused)
Net metering credit changes possible
· Signs indicate potential solar credit value reductions
How you can still save on solar in WA
· Lock-in net metering rates before changes
· State sales tax exemption
Changes to Federal Solar Incentive Programs
The current administration has eliminated or significantly scaled back many popular programs, including:
Solar for All Grant Program
This $7 billion program, part of the Inflation Reduction Act (IRA), designed to make solar more affordable for low-income households, has been repealed.
Residential Solar Investment Tax Credit (ITC)
The 30% tax credit for home solar panel and battery storage installation ended in December 2025.
Clean Energy Tax Credits
A July 2025 executive order terminated federal solar and wind tax credits, instructing the Treasury Department to phase out clean energy incentives within 45 days.
Commercial Solar Tax Credits
Nearly extinct, credits require solar energy systems for businesses to be in construction by June 2026 or in service by December 2027. Projects must also meet stricter safe harbor rule requirements and pass an eligibility screening for foreign-influenced entities to qualify.
USDA Rural Energy for America (REAP) Grants
Application approvals for REAP grants remain permanently paused pending revisions to ensure compliance with an executive order targeting wind and solar subsidies, as well as the pending Farm Bill.
Potential Net Metering Policy Updates in East Washington
Net metering allows home and business owners to earn credits for excess solar energy they produce and send back to the grid, facilitating a faster return on investment and lasting savings. However, proposed changes by the Washington State legislature signal potential alterations to net metering programs that could significantly lower current 1:1 credit values and savings. Puget Sound, the region's largest energy provider, discussed plans to reevaluate this exchange rate, potentially limiting the financial benefits of solar installation.
What Incentives are Available for Solar Panels in Spokane County?
Despite federal policy changes, opportunities still exist to save on solar, including:
Higher net metering credit exchange rate
If you install solar panels before changes take effect, you can still secure a 1:1 net metering credit exchange rate.
WA State sales tax exemption on solar
Save 6.5% on solar installations up to 100 kW for systems installed before December 31, 2029.
Modified Accelerated Cost-Recovery System (MACRS) depreciation
This tax incentive allows businesses to depreciate solar investment value over five years through annual deductions.
It’s more important than ever to stay informed on the status of available incentives and get solar for less before these opportunities expire. Our solar company in Spokane ensures every customer is aware of current incentives, including utility and manufacturer rebates, keeping you informed of changes to USDA grant programs, net metering, and more. We strive to make solar accessible to all, finding ways to help you install solar within your budget.
Capture Solar Incentives Before They Vanish
Don’t let solar incentive changes limit your access to clean, reliable, affordable solar power. Learn how you can save on solar in Spokane County, including Airway Heights, Cheney, Deer Park, Liberty Lake, Medical Lake, Millwood, Spangle, and Spokane, with help from PacWest Solar. Contact us at 509-929-2728 to schedule an energy assessment and solar installation estimate today.