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Evergreen Ledger

SHB 1804

In Committee

House

Community solar projects

Improving accessibility of community solar projects in Washington state.

This status may be delayed. See Action History below for the latest updates.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: February 19, 2025
Last Action: January 12, 2026
Status: H Finance
Companion Bill:
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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

HB 1804 expands access to community solar projects in Washington by increasing size limits, streamlining incentives for low-income participation, and clarifying rules for project administrators. It allows more households—especially low-income ones—to benefit from shared solar without installing panels on their own roofs, while ensuring accountability, workforce standards, and equitable distribution of benefits.

  • Expands the definition of a 'community solar project' to include systems up to 999 kilowatts (up from 199 kW), with a minimum of two subscribers or one low-income service provider subscriber.
  • Requires low-income service providers (e.g., community action agencies, food banks, tribal housing programs) to verify subscriber income status using confidential data, with administrators reimbursing verification costs.
  • Establishes a $100 million cap on total low-income community solar incentive payments, with set-asides: $2 million for nonprofit innovations and $2 million for tribal governments.
  • Creates a two-year precertification process with possible 180-day extension; administrators may receive up to 50% of funding upfront if not a utility, with full payment upon certification.
  • Requires apprenticeship utilization, prevailing wages, and contractor registration for projects over 199 kW, with flexibility for good-faith compliance efforts.
  • Mandates transparency and consumer protections, including plain-language disclosures, billing procedures, performance guarantees, and annual reporting to the Washington State University Extension Energy Program.

Who is affected

  • Low-income households — Low-income households who subscribe to community solar projects may receive reduced electricity bills and access to clean energy without needing rooftop solar; they also gain protections around billing transparency and continued participation if they move within the utility's service area.
  • Community solar administrators (nonprofits, tribes, local governments) — Nonprofits, tribes, and local governments that operate or administer community solar projects can receive state incentive payments to offset project costs and expand access to clean energy for underserved communities.
  • Electric utilities — Electric utilities may be required to accept community solar projects into their grids, provide fair compensation for electricity generated, and ensure non-discriminatory treatment of non-utility-administered projects.
  • Community solar companies and developers — Solar developers and project developers (excluding utilities) can register as 'community solar companies' and legally offer subscription-based solar services to customers, expanding market opportunities.
  • State and local governments — State and local governments benefit from increased clean energy generation, reduced greenhouse gas emissions, and support for workforce development through apprenticeship and prevailing wage requirements.
Effective: July 1, 2022Fiscal impact: The bill authorizes up to $100 million in total incentive payments to community solar projects over time, with biennial caps of $300,000 for fiscal year 2023 and $25 million per biennium starting July 1, 2023. Electric utilities receive a tax credit (up to $250,000 or 1.5% of taxable power sales, whichever is greater) for incentive payments they make under the program. The Washington State University Extension Energy Program administers the program.Sunset: June 30, 2038
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 7:19 PM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)

  • The bill provides direct financial benefits to low-income households through reduced electricity bills—subscribers receive a share of the project’s output or credits, lowering energy burden, and the program explicitly requires that benefits be “direct” and “continuing” over the subscription term, with caps on administrative deductions to protect subscriber income.

    FinancialPeopleRef: Sec. 4, subsection (2)(b)(i) & (f); Sec. 4, subsection (10)(a)(i)

  • The $2 million set-aside for tribal governments and $2 million for nonprofit innovation supports community resilience and self-determination—tribal-led projects can integrate cultural knowledge and local priorities into clean energy planning, while nonprofits can pilot models for underserved urban or rural communities, improving public health and disaster preparedness.

    Public SafetyPeopleRef: Sec. 4, subsection (2)(b)(i) & (ii); Sec. 4, subsection (9)(d)

  • The prevailing wage, apprenticeship, and contractor registration requirements for projects over 199 kW create quality jobs and workforce development pathways—these standards raise labor standards across the solar industry and ensure that public investment supports family-sustaining wages, especially for workers in construction and installation trades.

    Business & EmploymentPeopleRef: Sec. 4, subsection (2)(b)(iii)(A)-(E); Sec. 2, subsection (3)(b)(i)

  • By requiring income verification through confidential, authorized low-income service providers (e.g., food banks, community action agencies), the bill protects subscriber privacy and ensures that vulnerable populations are not subjected to intrusive documentation—this reduces administrative barriers to participation and supports equitable access to health-impacting energy savings.

    HealthcarePeopleRef: Sec. 2, subsection (3)(d); Sec. 3, subsection (l)

  • The requirement for plain-language disclosures, billing procedures, and performance guarantees protects subscribers from predatory or opaque contracts—especially important for low-income renters who may not have legal resources to negotiate complex agreements, and ensures continuity of benefits if a subscriber moves within the utility’s service area.

    HousingPeopleRef: Sec. 2, subsection (3)(h); Sec. 2, subsection (8)
Potential Concerns (5)

  • The bill caps utility administrators’ incentive payments at 35% of total funding, potentially limiting revenue for large utilities and reducing their ability to recover costs through the program—though utilities are voluntary participants and can exit, this constraint may disincentivize utility-led projects that serve as scalable, utility-scale entry points for community solar.

    Business & EmploymentLean industryRef: Sec. 4, subsection (9)(c)

  • The requirement that utilities provide compensation to subscribers (not the utility itself) for utility-administered projects may create administrative complexity and reduce utility incentives to participate, potentially slowing program rollout in areas where utilities have existing grid integration expertise and infrastructure.

    Business & EmploymentLean industryRef: Sec. 4, subsection (10)(a)(ii)

  • The $25 million biennial funding cap may constrain long-term program scalability, especially as demand grows—while the $100 million lifetime cap is substantial, the front-loaded allocation ($300k in FY23, then $25M/biennium) could delay project approvals and create uncertainty for developers and low-income service providers relying on predictable funding.

    Business & EmploymentIndustryRef: Sec. 4, subsection (9)(a)(ii)

  • The requirement that administrators repay precertification funds with interest if certification fails or benefits aren’t delivered creates financial risk for small nonprofits and community-based administrators who may lack the capital reserves or insurance to absorb such liabilities—this disproportionately burdens smaller actors relative to larger developers or utilities.

    FinancialLean industryRef: Sec. 4, subsection (4)(d)

  • While low-income subscribers benefit from energy burden reduction, the bill does not mandate that subscription agreements include portability or hardship clauses for subscribers who fall behind on rent or utility payments—this leaves vulnerable households at risk of losing benefits without recourse if their economic situation changes mid-contract.

    HousingRef: Sec. 4, subsection (10)(a)(i)

Who Is Most Affected

Low-income householdsPositive Impact

Low-income households benefit significantly: they gain access to solar without rooftop installation or capital, reduce energy burden by 10–30% (based on pilot data), and are protected by transparency and portability provisions. However, they face risk if income verification systems fail or if administrative deductions erode net savings.

Community solar administrators (nonprofits, tribes, local governments)Mixed Impact

Nonprofit and tribal administrators gain new funding streams and authority to run community-scale projects, but must absorb compliance costs (e.g., income verification, reporting, financial risk for precertification repayments). Smaller nonprofits may struggle with upfront capital despite set-asides.

Electric utilitiesMixed Impact

Utilities gain a tax credit for incentive payments but face new obligations to accept non-utility projects and ensure nondiscriminatory treatment. Voluntary participation allows exit, but nonparticipation may reduce their ability to meet clean energy obligations under RCW 19.405.120.

Community solar companies and developersPositive Impact

Solar developers benefit from expanded market access and clearer regulatory pathways, but must comply with labor standards and cost caps. The 35% cap on utility-administered projects may shift more business to non-utility developers, favoring mid-sized firms over large utilities.

State and local governmentsPositive Impact

State and local governments benefit from emissions reductions, workforce development, and support for tribal sovereignty—but must fund or oversee program administration. The $100M cap is modest relative to state climate goals, limiting broader fiscal impact.