What Is Net Metering? How it Works for Washington Homeowners

Considering solar in Washington? It’s important to understand net metering, the policy that shapes how much money you’ll actually save on your electric bill.

Washington’s 1:1 net metering policy lets homeowners send excess electricity back to their utility in exchange for credit on their bill. Currently, all state utilities including PSE, Seattle City Light, and Snohomish PUD offer 1:1 net metering, but the policy is expected to be restructured as early as next year.

Here’s what you need to know about net metering in 2026.

 

What is Net Metering?

In simple terms, net metering is the policy that allows homeowners with solar panels to send extra electricity back to the utility grid and receive credit for that energy on their bill. Those credits can then help offset the electricity you use when your solar panels aren’t producing as much, like at night or during cloudy winter months.

Think of it like depositing and withdrawing credits from the utility grid “bank.”

 

How Does Net Metering Work in Washington?

Your solar panels produce electricity whenever the sun is up (even on cloudy days). Your home uses some of that energy right away, but sometimes your panels produce more electricity than your home needs.

When that happens, the extra electricity flows back to the electrical grid (unless you install a solar battery to store the extra energy on site).

Your utility then gives you credits for that excess energy. Later, when your home needs more electricity than your solar panels are producing, those credits can help reduce your bill.

How much is a kWh of solar power worth to your Washington utility company? The full retail rate that they charge per kWh.

The current net metering policy in Washington (2026) offers credits at a 1:1 ratio. Meaning, the economic value of a kWh of your solar power is the same whether you use it immediately, store it in a battery, or send it back to the grid for credit.

No waste. Maximum energy savings.

 

Why Does Net Metering Matter for Washington Homeowners?

Solar panels don’t produce the same amount of energy year around, especially in Seattle. For example, solar systems in Seattle generate 75% or more of their annual energy output in May–October, the sunniest six months of the year.

Also worth noting, Seattleites tend to use less electricity in the summer months compared to the low-light, cold winter months when they turn on more lights and heat their homes (although seasonal usage is evening out slightly with the increased adoption of AC).

So does that mean excess production in summer months goes to waste? Not at all, thanks to Washington’s 1:1 net metering policy.

Here’s a simple example:

• Your solar system produces more electricity than you use during Seattle’s sunny summer months, reducing your electricity bill almost $0 excluding the utility fee.
• The extra energy goes back to the grid, and you receive credits.
• During Seattle’s winter months, you use electricity from the grid and those credits help offset the cost.

Are you starting to see how Washington net metering delivers big solar savings?

 

How Net Metering is Saving Solar Customers Thousands in Energy Costs

We’re often asked “What is net metering?” and “How will net metering save me money?”

Here’s how Solterra Solar frames it for our customers: when you purchase solar, you’re prepaying for your energy at a fixed rate per kWh for the next 25+ years (the lifetime of your system).

Every year utilities raise energy rates. That means, each year, the market value of each kWh your solar system generates goes up in value, but the price you paid for it stays fixed. That’s why buying solar is an investment—your returns compound over time.

Once you’ve reached your system’s payback period, every kWh you produce after that point costs you $0, but the economic value of that kWh has never been higher.

Over the 25+ year lifetime of your system, those savings grow exponentially, saving you more in energy costs each year and shortening the payback period of your system over time.

If you go solar by early 2027, you’ll also lock in the current 1:1 net metering incentive. This policy ensures the fixed rate you paid for your electricity doesn’t depreciate over time. For example, if you wait to go solar after the net metering changes to a 2:1 rate structure, your solar kWh will only be worth 50% of the full retail rate.

This is why we’re urging customers to go solar today before net metering changes.

 

Which Washington Utilities Offer Net Metering?

In short, all of them. Washington state law requires every electric utility — investor-owned utilities, municipal utilities, and public utility districts — to offer net metering. That means if you’re a homeowner served by PSE, Seattle City Light, Snohomish County PUD, or any other utility in the state, you currently have access to 1:1 net metering.

However, while the state mandates that utilities offer net metering, it doesn’t guarantee that today’s 1:1 rate lasts forever. Once a utility hits certain program capacity caps, it isn’t strictly required to keep offering that same retail-rate exchange indefinitely.

 

Will 1:1 Net Metering Go Away?

Washington law guarantees 1:1 net metering only until the earlier of two triggers: June 30, 2029, or the date a utility’s cumulative net metering capacity hits 4% of its 1996 peak demand. Once either threshold is reached, that utility can propose a new rate structure.

Some, like PSE, have already passed the 4% cap but still offer 1:1 rates as of July 2026. Curious if your utility has reached their cap? Check out Washington State University’s net energy dashboard that tracks the status of each utility’s progress.

If you’re considering solar, we recommend making the switch soon to lock in your 1:1 net metering benefit before this incentive is restructured (expected as early as 2027).

 

Does net metering work with a solar battery?

Yes, homeowners with a solar battery enjoy the exact same net metering benefits as those without one. Here’s how the two work together:

• During the day, the electricity your panels produce powers your home first.
• Any excess energy charges your solar battery, and once it’s full, whatever’s left over is sent back to the grid for net metering credit.
• At night or during winter months, your home draws from your solar battery first (if you choose), then pulls from the grid using the credits you’ve banked.

Because net metering runs on a 1:1 rate structure, it makes no financial difference whether your home is pulling power from your battery or from the grid, a kilowatt-hour is worth the same either way.

So why add a battery at all? It comes down to control, not credits. A battery keeps your lights on during a grid outage, gives you backup power when you need it most, and lets you decide how and when to use your stored energy (benefits that net metering alone can’t offer).

 

Net Metering FAQs

Is net metering available in Washington?
Yes. Washington state requires every electric utility, from investor-owned providers to municipal utilities and PUDs, to offer net metering to homeowners who go solar. That includes major western Washington providers like PSE, Seattle City Light, and Snohomish County PUD.

How much could I actually save?
That depends on your roof, your household’s energy habits, and your utility’s specific rate schedule. Rather than give you a ballpark, Solterra Solar builds a custom production and savings model for your home as part of every proposal, so you know what to expect before you go solar.

Is my net metering rate locked in forever?
Not necessarily. If you make modifications to your installed solar system, like upgrading panels or adding a battery, you could be forced into the new net metering program. So, whether you’re considering solar or want to make an upgrade to an existing system, its important to try and do it before net metering changes.

Do net metering credits ever expire?
Yes. Under Washington law, credits rollover month to month, but any unused credit balance resets each year on March 31st. That’s part of why right-sizing your system to your actual usage matters. Solterra Solar designs your system around your real energy needs, not just your roof space, so you’re not leaving credits on the table.

When will 1:1 net metering end in Washington?

Washington ties its 1:1 net metering guarantee to statewide capacity caps and a 2029 policy review, and a handful of utilities have already begun shifting toward new rate structures. Solterra Solar tracks these changes closely across western Washington and factors the current rules into your proposal, so there are no surprises down the line.

 

 

Author Bio:

Sarah Taylor (she/her) is the marketing director for Solterra Solar. With nearly a decade of experience helping mission-driven organizations connect with their audiences, she blends utility, empathy, and artistry to craft content that drives measurable business growth and positive change in local communities. When she isn’t poring over words with hot tea in hand, you can find her exploring the PNW’s unrivaled wild spaces or gently persuading her indoor cat, Lemon, to embrace life as an adventure cat.