Do other states have a similar tax preference and what potential public policy benefits might be gained by incorporating a corresponding provision in Washington?

No other state offers a tax credit for utilities to encourage utility customers to buy locally created renewable energy technology.

Since 2014, Minnesota has a Made in Minnesota Solar Incentive Program administered by the state’s Department of Commerce.  The program has an annual budget of $15 million per year.  Applicants are selected by lottery each year and the winners receive payments for each kilowatt-hour produced for ten years.  Incentive rates are set by the Department annually and vary by manufacturer.  The table below shows the incentive rates for 2016.  Residential systems receive the highest rate for each product, and commercial for-profit entities receive the lowest rate.

The Made in Minnesota Solar Incentive Program Offers Highest Rates to Residential Systems and Varies by Model of Solar Panel

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Source: Minnesota Department of Commerce.

The Minnesota program is restricted to customers of three investor-owned utilities.  The Minnesota Department of Commerce reports that its new projects selected in 2016 represent 5.7 Megawatts of capacity, for a total of 38 Megawatts of solar capacity statewide.