Can You Combine Solar Incentives in the Puget Sound Area?
Can You Combine Solar Incentives in the Puget Sound Area?
Here’s what works and what doesn’t
One question we keep hearing is “Can I stack multiple solar incentives together?”
The short answer is yes, with one important exception: time-of-use rates.
Energy Incentives Currently Available in the Puget Sound Area
Time-of-Use (TOU) Rates
Time-of-Use pricing means your electricity costs more during peak hours (usually evenings) and less during off-peak hours (overnight or midday). Sometimes misconstrued as an incentive, TOU programs are a rate structure designed to encourage customers to shift energy use away from high-demand times.
While TOU can benefit some all-electric homes without solar, it is not compatible with solar incentives once you move forward with a solar installation.
Battery Flex Program (Puget Sound Energy only)
PSE’s Battery Flex program allows homeowners with battery storage to:
- Earn PSE Flex rewards for allowing limited utility access during peak demand events
- Help stabilize the grid while maintaining backup power for their home
This program can be combined with solar and net metering, but cannot be combined with Time-of-Use rates.
1:1 Net Metering
Net metering allows your solar system to send excess electricity back to the grid in exchange for full retail-rate credits. When your system isn’t producing enough (like at night), you draw from those credits.
Net metering is one of the most valuable solar incentives available:
- It is automatically initiated during the permitting process
- It gets activated after your system is installed and approved
- It is mutually exclusive with Time-of-Use rates, meaning you cannot be on net metering and TOU at the same time
No Washington State Sales Tax on Solar
Washington state offers a sales tax exemption on solar installations, including:
- Solar equipment
- Labor
- Electrical work performed as part of the solar project (batteries, SPAN panels, etc.)
This exemption applies automatically to qualifying solar projects and can be combined with all other solar incentives.
New Construction Tax Credit
For qualifying new construction projects, additional new construction solar tax incentives may apply when solar is incorporated into the original build. These incentives can be combined with net metering, battery programs, and the sales tax exemption, as long as the home qualifies under program guidelines.
Commercial Solar Tax Credit
Commercial and multi-family properties may qualify for separate commercial solar tax incentives. These are fully compatible with net metering, battery programs, and Washington’s sales tax exemption, depending on system design and ownership structure.
Which Puget Sound Area Incentives Can Be Combined?
The following incentives can be stacked together:
- 1:1 Net Metering
- Battery Flex Program (PSE customers only)
- Washington state solar sales tax exemption
- New construction tax credit or commercial solar tax credit (one or the other)
Time-of-Use cannot be combined with any solar incentives
Once you move forward with solar:
- Net metering enrollment occurs during permitting
- Net metering becomes active after installation
- Time-of-Use is automatically removed
- Because tax exemptions and credits are tied to solar participation, they also cannot exist alongside TOU
Once you move forward with a battery (PSE customers only):
- You generally cannot combine a Time-of-Use (TOU) rate plan with the Puget Sound Energy (PSE) Flex Batteries program
- Time-of-Use is automatically removed
In short, you cannot have Time-of-Use and solar or battery at the same time.
What This Means For You
Time-of-Use rates are often marketed as an “incentive,” but for solar customers, net metering and battery programs are far more valuable over the life of a system. Understanding these tradeoffs upfront helps ensure accurate financial projections and predictability after installation.
At Solterra Solar, our job is to help you choose the incentive structure that actually works best for your home, not just what sounds good on paper.
Author Bio:
Macie Mancini joined Solterra Solar as a Solar Design Consultant in 2025. She holds a Master of Science in Engineering Design Innovation with a focus on sustainable systems and products from Northwestern University. She brings deep, cross-disciplinary knowledge that enhances her solar designs—from circular economy principles to user-product interactions and green energy electromechanics. Macie excels at helping clients build custom solar solutions for their homes and communities. From designing arrays to ensuring clients understand their system, she delivers a highly personalized customer experience every step of the way.
