Over the last decade, solar energy in Washington has grown from a niche clean power source to an increasingly cost-effective option for homeowners statewide. Favorable state policies, technology improvements, and federal tax credits have come together to make solar a smart investment, saving money while reducing your carbon footprint.
To help you navigate the decision to go solar, this guide will provide detailed projections and data behind the costs, savings potential, available incentives, outlook for wider adoption, and more. With the right information, you can determine if home solar is right for your situation.
The Current State of Solar in Washington
Before diving into costs and savings numbers, let‘s look at the 30,000 foot view of solar adoption in Washington today:
- Over 300 MW of solar power installed statewide as of 2021
- Generated enough clean energy to power 50,000 homes annually
- Accounts for 0.8% of total electricity generation in WA currently
- Ranked 16th nationally for installed solar capacity
- Supported over 4,200 solar jobs in WA
And this is just the beginning…
Projected Washington Solar Growth
| Year | Installed Capacity | % of Total WA Generation |
|---|---|---|
| 2026 | 1,500 MW | 3% |
| 2031 | 3,000 MW | 7% |
| 2040 | 6,000 – 8,000 MW | 15-20% |
With plenty of rooftop space and solar resources available, projections estimate solar could grow to meet 15-20% of the state‘s total electricity demand by 2040.
Several policy levers also support this continued solar expansion, including the state‘s commitment to 100% clean electricity by 2045 and incentivizing distributed generation.
Okay, now let‘s explore what this growth and supporting policies mean for installing solar on your home!
Solar Panel Costs in Washington
The average cost to install home solar in Washington is around $3.00 per Watt, equating to about $18,000 for a typical 6 kW system. However, you can expect a range of $2.50 to $3.50 depending on your specific conditions:
System Size
| System Size | Average Price per Watt | Total Price |
|---|---|---|
| 3 kW | $3.50 | $10,500 |
| 6 kW | $3.00 | $18,000 |
| 10 kW | $2.50 | $25,000 |
Location
| Region | Avg. Price per Watt |
|---|---|
| West of Cascades | $3.25 |
| East of Cascades | $2.75 |
Equipment Selection
| Equipment | Avg. Price Per Watt |
|---|---|
| Standard Silicon Panels | $2.75 |
| Premium Monocrystalline Panels | $3.25 |
| Microinverters | +$0.25 |
| Battery Backup | +$1.00 |
Other Cost Factors: Permitting fees, interconnection application fees, electrical upgrade needs
These cost ranges demonstrate how your specific solar quote can fluctuate significantly based on size, equipment, location, and complexity.
Historical Solar Cost Trends in WA
The good news is that average solar costs have dropped over 15% across Washington over the last 5 years as technology matures and installer competition increases.
We can expect prices to continue declining, while utility electricity rates are projected to rise over time making solar more attractive. Locking in low rates now offsets that future rate inflation.
Calculating Your Bill Savings from Solar
The payoff for investing in a home solar system comes from offsetting your current electric bills. The savings you can expect from solar depends on:
- Your average monthly energy usage
- Your utility‘s electricity rate structure
- The size solar system installed
- Applicable incentives reducing effective cost
Let‘s compare the savings potential from a 6 kW solar system for customers of the major utilities:
| Utility | Electricity Rate | Annual Bill Savings |
|---|---|---|
| Seattle City Light | $0.099 / kWh | $900 |
| Puget Sound Energy | $0.124 / kWh | $1,100 |
| Avista Utilities | $0.104 / kWh | $1,000 |
| Grays Harbor PUD | $0.085 / kWh | $750 |
These annual savings figures calculate out to $18,000 to $27,500 in cumulative utility bill offsets over 25 years.
That covers your initial solar panel investment in around 10-15 years, with over a decade of continued savings.
And that‘s before accounting for incentive and rebate reductions we‘ll discuss next!
Incentives Reduce Your Out-of-Pocket Solar Costs
While solar costs more upfront than other home upgrades like insulation or appliances, Washington offers incentives allowing you to recoup 30-40% of your initial investment:
26% Federal Solar Tax Credit
Applies to all equipment and installation costs for systems installed through 2032. You claim this as a credit on your tax return the year your solar system goes live.
WA State Sales Tax Exemption
Solar panels and installation labor are exempt from the state‘s 6.5% sales tax. Additional 2% local sales taxes may still apply.
Utility Rebate Programs
Many utilities offer additional rebates ($0.50-$1.00 per Watt) to promote local solar adoption. Popular municipal utilities even offer group purchase programs for discounted pricing.
In total, these incentives reduce the effective out-of-pocket cost for solar by 30-40%. That means shorter payback timelines saving you more money over the system lifetime.
Solar Financing Options
In addition to upfront incentives, you can finance solar panels in Washington to manage costs over time. Low-interest loan options keep monthly payments affordable.
Solar Loans – Credit unions/banks offer personal loans with rates as low as 3-6% APR and terms up to 20 years
Solar Leases – Agree to host a solar system owned by a 3rd party provider in exchange for on-bill credits
Power Purchase Agreements – Similar to a lease but compensation is based on actual solar production. This option provides predictable energy rates.
Run the numbers comparing financing vs buying with incentives factored in. You may uncover the shortest path to payoff while minimizing lifetime costs.
The Solar Growth Outlook for Washington is Sunny
With strong policy tailwinds, projections for Washington solar indicate a bright future:
- 1,500+ MW of solar power installed by 2026
- Solar meeting 15-20% of the state’s electricity by 2040
As solar costs continue declining while retail electricity rates rise, the financial case for installing panels on your home only grows more compelling.
You can lock in lower rates for decades while curbing fossil fuel dependence – that‘s a win-win!
Give our Washington solar experts a call today to map out costs, savings estimates, and incentives for your specific home. Going solar allows you to take control of energy costs while being part of the renewable future.
