2025’s given us a wild ride on the solar coaster due to ongoing policy changes impacting every aspect of the solar industry. Changes to the Federal tax credit for solar, tariffs, net metering and electricity rates are all impacting the price and availability of solar and energy storage. With all these changes, we thought it would be a good time to share some thoughts about solar and energy storage this year and next.
Federal Solar Tax Credit In 2025 And 2026
The 30% solar federal tax credit for homeowners expires on 12/31/25 instead of 2035 because of legislative action by the Trump administration. This created a “cliff event” and a rush for homeowners to get installed in 2025. As a result, our solar installation calendar is full for 2025 and we’re currently booking into 2026.
Importantly, the tax credit is available for commercial solar projects through 2027 so please get in touch with us to learn how your business can take advantage of federal incentives while they last.
Net Metering Is NOW The Most Important WA Solar Incentive
Losing the 30% tax credit hurts and now, net metering is in jeopardy.
Several Washington utilities are already meeting or exceeding their mandated participation levels. 2026 looks to be the last year with the current 1-1 net metering rate structure in Seattle City Light and Puget Sound Energy.
Utilities across the country are targeting and sabotaging net metering. When California implemented NEM3.0 (net metering) in 2023, it resulted in a 75-80% decline in the rate of residential solar installations due to the financial implications for customers. The CA utilities shifted from a 1-1 rate structure (like currently in Washington) to one which fluctuates between $0.05 to $0.08 per kWh credit and the average California utility charges $0.335, so they pay roughly 14% to 23% of what they charge retail customers, nowhere near a 1-1 ratio.
WASEIA, the Washington Solar Energies Industries Association, is commissioning a study by the Washington Academy of Sciences focusing on the value of solar and energy storage to help guide future net metering rates.
We’re encouraging people to go solar ASAP to access current net metering rate structures NOW before they change.
Electricity Rates Are Increasing. Stop Renting Your Power!
Solar homeowners lock down their electricity costs for the system lifetime: at least 25 years. In 2001, when PSS started, electricity was $0.041 per kilowatt hour. It’s more than tripled to ~$0.13 per kWh in Western Washington, which translates to about a 5% increase per year. Imagine the cost of electricity in 2050!
Our local utilities are increasing or changing their rate structure …
- Seattle City Light is introducing variable Time of Day rates for its customers beginning in the fall of 2025 and effectively raising rates 5.4% in 2025 and 5.4% in 2026.
- Puget Sound Energy is increasing their rates 12% in 2025 and another 6.3% in 2026 according to the Utilities and Transportation Commission.
- Snohomish PUD customers experienced a 4.6% increase in 2025.
- Tacoma Power is raising rates 6.5% in 2025 and 6.5% in 2026.
Currently, the amortized cost of electricity with a purchased solar pv system is ~$0.07 per kWh which is already less than the current utility electricity rates at ~$0.013. So, even without the tax credit, solar power saves homeowners thousands of dollars!
Batteries, Incentives And Resiliency
Batteries can be paired with or without solar. Get peace of mind about power outages and avoid using electricity during the more expensive time of day periods to save money.
We offer Enphase, Franklin and Tesla battery storage systems and we’re actively reviewing other brands.
Puget Sound Energy customers interested in energy storage should check out PSE’s Flex Batteries Program and get $1,000 per battery installed and another $500 per year, per battery, if you grant PSE access to your batteries during peak demand events (while leaving you no less than 20% of your own storage). You are eligible even if you already own a battery!
We’re closely monitoring Washington HB 1871 during the next Legislative session as it will create mandatory energy storage incentives for Washington utilities.
Company News
Big shoutout to the whole PSS and EV Support team who’ve met this year’s challenges head-on. Our staff is working long hours, up to six days a week to get solar installed for as many customers as possible before 12/31/25.
We’re proud to announce we’re a finalist for the King County Executive’s Sustainable Small Business of the Year award on 10/1/25 and we were again named one of Solar Power World’s Top Solar Contractors In the US.
Our mission is to drive solutions for climate change. Our other foundational mission is to create good, green jobs that give people purpose and a living wage. We believe that bringing these jobs to more diverse and marginalized communities is the perfect union of climate action and social justice. To that end we have continued our successful partnership with King County’s Jumpstart Program. We have now hired our third graduate of the program!
Lastly, Puget Sound Solar is proud and grateful to be in our 25th year of helping our community reduce carbon emissions, get control over their electrical costs and providing great jobs to our employees.