The Clock’s Ticking: Why Solar Savings May Peak in 2025
As 2025 approaches, the solar energy industry in Washington State and across the U.S. faces some uncertainty but it may be the best year ever for homeowners to go solar. From potential policy changes to energy pricing shifts, homeowners considering solar have questions. At Puget Sound Solar, we’re keeping an eye on these developments to help you make informed decisions. Here’s what you need to know about the key factors that could impact the solar landscape next year:
Federal Solar Tax Credits: Will They Continue?
The Investment Tax Credit (ITC) has been a cornerstone of solar adoption, offering homeowners and businesses a significant federal tax break on solar installations. However, with the Trump administration returning, there are concerns about the future of clean energy incentives. While nothing is certain, renewable energy enjoys broad bipartisan support for its job creation and energy independence benefits, which may help preserve tax credits, however, one likely outcome is the phase-out date for the ITC (2033) will be shortened. If you’re considering solar, now is a smart time to act while the 30% ITC is still available.
Potential Solar Tariffs: What to Expect
New or increased tariffs on imported solar panels could impact pricing. While current tariffs have already raised costs, further increases could place additional strain on solar affordability. The industry remains resilient, with U.S. and global manufacturers adapting quickly to meet demand. Puget Sound Solar works hard to identify and offer cost-effective solutions and stays ahead of these market changes to ensure you get the best possible value.
Net Metering in Washington State: Now Is the Time to Act!
In Washington, net metering remains a key benefit for solar customers, allowing you to send excess solar power back to the grid in exchange for energy credits that reduce your utility bills. While some Washington utilities have approached or even exceeded their mandated net metering benchmarks, they continue to participate in the program as they await the results of a statewide value of solar study. This study will evaluate the full economic and environmental benefits of solar power, which could influence future net metering policies. Net metering in PSE territory will very likely change after this year. Seattle City Light is 1-2 years behind them. Now is the time to get solar!
In 2023, California made sweeping changes to its Net Metering policy that significantly reduced the export rate for homeowners, substantially impacting the economics of installing solar and it resulted in a dramatic downturn in the rate of solar installations. A similar change in Washington would be devastating to the rate of solar adoption.
Time-of-Day Pricing: How Soon Will It Affect You?
Seattle City Light and Puget Sound Energy (PSE) are exploring time-of-use pricing, where electricity rates vary based on the time of day. This change could make solar and battery storage even more valuable by helping you avoid peak energy costs. Pairing your solar system with battery storage allows you to store excess power during the day and use it when rates are highest.
Puget Sound Energy’s Flex Batteries Program: What It Means for You
PSE recently introduced a Flex Batteries program offering a $1000 installation rebate (per battery) and a $500 annual participation incentive. In return, PSE will periodically discharge your battery’s stored energy into the grid (up to 60 events per year) to help alleviate pressure on the grid infrastructure. Program participation is entirely voluntary, and only available to customers within PSE’s electrical coverage area. At this time, Tesla’s PowerWall 3 is eligible for the Flex Battery program, but the Franklin aPower 2 and the Enphase 5P battery are not. Please contact PSE for more information.
Why 2025 Is the Time to Go Solar
While the solar industry faces uncertainties in 2025, the benefits of solar energy remain strong:
Take advantage of the 30% federal tax credit before any potential changes.
Lock in savings with Washington’s Net Metering program.
Prepare for time-of-use pricing with solar + battery storage.
Control your electrical costs even when utilities raise rates.
Increase your home’s resale value.
Minimize equipment price increases due to pending solar tariffs.
Cleaner air and water for everyone.
At Puget Sound Solar, we’re committed to helping you navigate these changes with confidence. If you’re considering solar, now is the perfect time to explore your options and lock in savings.
Contact us today for a free quote and take control of your energy future.
