Snohomish County Public Utility District No. 1

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Customer Service (M-F 8a-5:30p): 425-783-1000

Solar Billing Update


The Renewable Energy Cost Recovery Incentive Payment Program (commonly referred to as the Production Incentive Program) is a Washington state program that the PUD administers for its (mostly solar) customer-generators. On July 1, 2015, the PUD changed how it administers this incentive to align our business process with others in the state.

Beginning July 1, 2015, the total annual incentive will be calculated after the end of each fiscal year (state fiscal year ends June 30, 2016). We continue to show the renewable energy kilowatt-hours produced and metered each bill period.

WA State Production Incentive Cap PDF (click to view)

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If you’d like to review how our process was handled prior to June 30, 2015, click here.

Process for production shown on PUD bills prior to June 30, 2015:

 July 1, 2014-June 30, 2015

Customers buy energy from the PUD. Through net metering, they are only charged for the net amount of energy purchased or minimum energy charges, whichever is greater. The PUD meters solar production, puts the kWh produced on the bill, and posts the associated Renewable Energy Incentive Credit on the bill, which is used to pay down PUD charges (even minimum energy charges), and can result in a positive account balance.

After June 30, 2015

The PUD prepares for customers their annual incentive application, which lets customers know how much renewable energy was produced and metered during the fiscal year and the total incentive amount that was credited. The customer must sign and return this annual application in order to keep the credit that has already been posted to their account. If the PUD doesn’t receive this application from a customer, PUD must REVERSE all of the previous year’s credits given.

Customer may cash out any credit balance they have remaining as of June 30 (credit that was posted through the fiscal year, but not used to pay PUD charges), or leave it on the account to pay down future charges.

After reporting to the state the total amount of Production Incentive Credits given to PUD customers in the previous fiscal year, PUD takes a credit on their Public Utility Tax equal to that amount.


Production incentive process for energy metered during fiscal year July 1, 2015-June 30, 2016:

July 1, 2015-June 30, 2016

Customers buy energy from the PUD. Through net metering, they are only charged for the net amount of energy purchased, or minimum energy charges, whichever is greater. PUD meters solar production, puts the kWh produced on the bill (displayed as KWH REN), but will not post an associated Incentive Credit. 

Customers with new solar installations, or that have not received production incentive credit before, must make sure that PUD has a copy of their program certification letter from the Department of Revenue.

After June 30, 2016

The PUD will prepare annual incentive applications for all certified customers, which lets customers know how much renewable energy was produced and metered during the fiscal year and the total incentive amount earned. Customers should receive this information by late July. Customers will need to respond to PUD with their acceptance (we’ll provide instructions and allow for both electronic and paper communications). When the PUD receives the accepted application back from the customer, we’ll credit the customer for the lump sum of fiscal year incentives. Customers may cash out their full credit or leave it on their account to pay down future PUD charges.

After reporting to the state the total amount of Production Incentive Credits given to PUD customers for the previous fiscal year, PUD takes a credit on their Public Utility Tax equal to that amount.


Please also note that the State Production Incentive Credit is separate from net metering. It is based on your production meter readings for all energy produced regardless of whether you use it or send it back to the grid. The PUD is not changing net metering, which allows you to pay for the net amount of energy you purchase from the PUD. We will still roll forward net metering credit when you send more power to the grid than you purchase from the grid in a given bill period (through April 30 of each year). We put that in the “Net Metering Reserve” shown on your bill. When you are generating more than you use, or drawing from your net metering reserve, you will still be charged a minimum energy fee (about $15 per month).

  • For questions about your PUD bill, please call the Energy Hotline at 425-783-1700.
  • For more information about the State Renewable Energy Cost Recovery Incentive Payment Program, please click here.