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?
- 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.
- Avoid uncertainty: Future rate structures could reduce the value of your solar investment.
- 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.
- 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.