If you’ve been thinking about going solar or expanding your current system, the clock is ticking. Washington’s net metering program—a key driver of solar affordability—is nearing its limits for Puget Sound Energy (PSE). Waiting too long could mean missing out on the full financial benefits of solar under the current rules.

Here’s what you need to know to maximize your investment in solar power.

What Is Net Metering, and Why Does It Matter?

Net metering allows solar owners to send excess electricity generated by their systems back to the grid, earning credits that offset future energy bills. This 1:1 credit system means that every kilowatt-hour (kWh) you export can reduce your electricity costs later, making solar power an even smarter financial choice.

However, net metering isn’t infinite. Washington’s net metering law (RCW 80.60) requires utilities to offer these credits only up to a certain cap: 4% of their 1996 peak demand. Once a utility reaches that cap, it can change its rate structure for new solar customers—and those changes might not be as favorable.

PSE’s Net Metering Cap: Nearing the End

Puget Sound Energy, the largest utility in Washington, has been rapidly approaching its net metering cap. As of June 2024, PSE had already exceeded 100% of its required capacity. While the utility is allowing new solar installations to participate in the current net metering program until December 31, 2025 (or until a new rate structure is implemented), the clock is ticking for those who want to lock in these benefits.

Installing solar or expanding your system after 2025 could mean missing the opportunity to secure today’s 1:1 net metering rate. Future changes to the program could include lower rates for excess energy sent back to the grid, reducing the financial return on your solar investment.

What’s Next for Solar Customers?

While utilities like PSE are required to review any proposed changes to net metering through the Utilities and Transportation Commission, the details of future rate structures remain uncertain. Some utilities that have already hit their caps, such as Orcas Island Power & Light (OPALCO), have adopted new rate systems that compensate solar customers at lower rates for excess energy while adding grid usage fees.

The takeaway? Installing solar or adding panels to your system in 2025 ensures you’re grandfathered into the current net metering program, preserving the full financial benefits for years to come.

Why install or expand in 2025?

1. Lock in current benefits: By installing or expanding your system before new rules take effect, you can ensure you’re covered under the existing 1:1 net metering program.
2. Avoid uncertainty: Future rate structures could reduce the value of your solar investment.
3. Take advantage of incentives and exclusive financing: In addition to net metering, other federal and state incentives are still available, making this a cost-effective time to go solar.
4. Calendars fill up quickly: From permitting to installation, solar projects take time, and early action helps ensure your project is included in schedules for 2025

With rebates, incentives, and exclusive financing opportunities available now, many homeowners are recognizing the value of installing solar or expanding their system this year. Because of the net metering deadlines set by the Washington Utilities and Trade Commission, starting the process in early 2025 is the best way to avoid delays.

The Solar Energy Industries Association (SEIA) and Wood Mackenzie released their Solar Market Insight Report for Q4 2024, revealing significant trends, steady growth, and milestones in the U.S. solar industry. Here’s a summary of the key findings:

Industry Growth

• Record Installations: The U.S. installed 8.6 gigawatts (GW) of solar capacity in Q3 2024, marking a 21% increase compared to the same quarter last year. This represents the largest third quarter for solar installations on record​
  Manufacturing Milestone: U.S. solar module manufacturing capacity reached nearly 40 GW annually, with the restart of domestic solar cell production for the first time since 2019. This growth reflects the impact of federal incentives and increased private investments​
  

Solar Market Trends

• Utility-Scale Dominance: Utility-scale projects accounted for 6.6 GW of the new capacity, showcasing the sector’s central role in meeting rising electricity demand.
• Community and Commercial Solar: These markets saw year-over-year growth of 12% and 44%, respectively, driven by businesses and community initiatives​
  

Leading States

• Texas: Continued to lead U.S. solar installations, adding 2.4 GW in Q3 2024, representing 26% of the nation’s new capacity.
• Florida: Ranked second in cumulative solar capacity, with nearly 30,000 households installing solar in 2024​
  

Future Outlook

• Steady Growth Ahead: The report predicts an average annual growth of 2% for the next five years, with total installations reaching nearly 450 GW by the end of 2029. Solar power is expected to serve over 71 million homes by then​
  Challenges: Despite robust demand, the industry faces constraints related to interconnection delays, labor shortages, and supply chain issues​
  

The report underscores the transformative impact of supportive policies and the industry’s commitment to expanding solar energy access. At Ecotech Solar, we’re proud to be part of this momentum, bringing solar to the Northwest for over 20 years and contributing to a more sustainable future. For more detailed insights into these trends and what they mean for the industry, explore the full report on SEIA’s website here.