How to Pay for Solar in Washington
Cash or a loan you own — we don’t do leases or PPAs. Here’s the honest breakdown, and why we point most homeowners to a local credit union.
Going solar is one of the bigger investments you will make in your home — so how you pay for it matters as much as what you install. Here is the honest breakdown of your options in Washington, and why we point most homeowners toward a local credit union rather than a national finance company.
Three ways to pay for solar
Across the industry there are three: pay cash, take a loan and own the system, or sign a lease / power-purchase agreement (PPA) where a third party owns the panels on your roof. At Mud Bay, we only do the first two — ownership. We don’t offer leases or PPAs, and the rest of this page explains why owning is almost always the better deal.
Why we don’t do leases or PPAs
With a lease or PPA you do not own the system, you do not get the full benefit of net metering, and — critically — leased systems do not reliably add to your home value. Owned systems do. A 2025 analysis of Zillow data found homes with owned solar sell for about 6.9% more on average. Buyers are often wary of inheriting a lease contract. If a salesperson is pushing "free solar," it is almost always a lease. We only install systems you own — cash or financed.
Cash vs. financing
If you have the cash and no better use for it, paying outright gives the fastest return — there is no interest, and every kilowatt-hour you produce is pure savings against a PSE bill that keeps climbing. But most homeowners finance, and that can still pencil out beautifully: when your monthly loan payment is at or below what you were already handing the utility, you are essentially swapping a rising bill for a fixed one — and you own the asset at the end.
Our recommended local lender: Puget Sound Cooperative Credit Union (PSCCU)
For financing, we recommend Puget Sound Cooperative Credit Union — a member-owned, not-for-profit cooperative chartered in Washington back in 1934 that has built its reputation specifically around clean-energy lending. They are local, they answer to members rather than Wall Street, and they understand solar better than a generic online lender.
- Energy-Smart loans for solar & efficiency projects, with financing available up to roughly $85,000
- Terms up to 20 years, which keeps monthly payments manageable
- 100% financing / $0 down available for qualified borrowers
- A track record of financing 7,100+ Washington solar homeowners and putting $115M+ back into local communities
Figures above are from PSCCU’s published program materials. We are not a lender and we do not set loan terms — rates and approval are PSCCU’s, they move with the market and your credit, and final terms come directly from them. Ask us for today’s rate when we quote you, and confirm the details with PSCCU before you sign.
What about the federal tax credit?
Be careful with any pitch that still leans on it. The 30% residential federal solar credit (Section 25D) ended for systems placed in service after December 31, 2025. We will never build your math around a credit that no longer exists. Washington’s net metering and the state sales-tax exemption (through 2029) are the real levers today, and we will show you exactly how they apply.
How we quote it
Every written quote we hand you shows cash and financing side by side — here is the cash price, here is what a PSCCU payment looks like, here is the old utility bill for comparison. No buried dealer fees, no "sign tonight." You keep the numbers and decide on your own time.
Common questions
Does Mud Bay Electric provide the loan?
No. We are an installer, not a lender. We help you connect with Puget Sound Cooperative Credit Union (PSCCU), but the loan, rate, and approval come from them. We never earn your trust by hiding who holds the paper.
What credit score do I need for a PSCCU solar loan?
That is up to PSCCU and depends on the program and current criteria. Many qualified borrowers get 100% financing with no money down, but approval and rate are based on your credit and PSCCU’s requirements. We can point you to their application.
Is a solar loan better than a lease?
For most owners, yes. A loan means you own the system, capture the full value of net metering, and add to your home’s resale value. Leases and PPAs generally do neither — which is why we don’t offer them. We only install systems you own, cash or financed.
Can I pay the loan off early?
PSCCU’s Energy-Smart loans are designed to be flexible, and many homeowners pay down faster using their utility savings. Confirm any specific prepayment terms directly with PSCCU.