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Learn about the incentives, benefits and drawbacks in cloudy Washington state.
Saltanat Berdikeeva
Saltanat Berdikeeva is a CNET contributor and a writer for our sister publication SaveOnEnergy.com who has published extensive work on energy and security issues in the US, Eurasia and the Middle East over the past decade. Her articles have been featured in Energy Digital, Inside Arabia, European Energy Review, National Geographic, Platts, Oil and Gas Journal, Insight Turkey, ISN, local newspapers and other publications. Saltanat also appears on syndicated TV and radio stations in the US, providing commentary and analysis on energy issues. With a passion for clean energy technologies, she focuses on providing clear and straightforward information in simple language on all things energy. Saltanat holds a master's degree in security studies from Georgetown University.
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7 min read
Washington state's coastal areas are notorious for clouds and rain. Do solar panels make sense? With rising power bills and new financial incentives, they might.
While Washington residents pay some of the lowest electricity rates in the country, the rates have been slowly rising over the years. Some of the largest public utilities in the state, including Puget Sound Energy,Avista and municipal utilities, increased electricity rates for the customers late last year.
The state's100% clean electricity goal and the2021 Climate Commitment Act will further increase the role of renewable and clean energy sources, including solar, in power generation.
Given the combination of state and federal solar incentives and utility rate increases, it's worth considering installing a solar system to reduce your energy bills and maintain price stability over the long term.
Best Solar Companies of 2023 See at Cnet
Washington solar panel cost
Solar panel costs differ from state to state. Generally, the type and quantity of solar panels, energy use, roof size and condition, permitting fees and labor expenses define what you will pay for a solar system. Local incentive programs can also play a role in determining the total cost of solar.
The average size of a residential solar energy system in Washington is 9 kilowatts -- slightly higher than the national average of 8.6 kilowatts. The following table using data from FindEnergy.com and Lawrence Berkeley National Lab's Tracking the Sun report breaks down Washington's typical solar panel costs and average system size.
Solar panel costs in Washington vs. US average
| System size (kW) | Price per watt | Installed cost | |
|---|---|---|---|
| Washington | 9 | $3.59 | $32,310 |
| US | 8.6 | $3.67 | $31,558 |
Solar financing options in Washington
You have a few routes to go solar in Washington. Choosing what's right for you will depend on your circumstances.
Cash: If you purchase a solar system with cash, you immediately assume full ownership. You will avoid any interest or loan fees associated with taking out a loan. The federal residential clean energy credit can help you recoup some of the high upfront cost of your investment (details on that below). Consider saving up for your future solar panels in ahigh-yield savings account.
Solar loans:If you don't have cash to pay for solar panels, but still want to own them, taking out a solar loan is the next best option. These loans, typically offered by your solar installer, are another option that is still eligible for the federal tax credit. Keep in mind that interest and fees can lead to higher costs over time.
Other loans:You don't have to borrow money from your solar company or the partner they recommend. You can also pay for solar panels -- and get the full federal tax credit -- with loans from banks and other lenders. That includeshome equity loansandhome equity lines of credit, which are secured by your home. Be careful: If you don't pay back a home equity loan or HELOC, your lender can foreclose.
Leasing: If you lease, you sign a long-term contract with a solar developer. The developer will install solar panels on your property and charge you a monthly rate (it's like paying rent) for using the energy from the panels. Unfortunately, you won't get any government incentives since you don't own leased panels. As the owner of the panels, the solar developer will receive all the incentives.
Power purchase agreement: With a power purchase agreement, a solar developer installs solar panels on your property and charges you a fixed price per kilowatt-hour for the energy generated by the panels. Like solar leasing, the company supplying electricity to your home through a power purchase agreement retains ownership over the solar panels and takes advantage of all government incentives.
While investing in solar isn't cheap, it's worth considering full ownership of a solar system by buying or financing it since they often save the most in the long term. If you buy your panels, the average payback period is estimated to be between six and 12 years. If you can't afford solar panels, a lease or power purchase agreement could be an affordable alternative
Washington solar panel incentives and rebates
Washington residents have several solar incentives to save thousands when purchasing residential solar panels. The residential clean energy credit, a federal solar tax credit program previously known as the investment tax credit, is one of the most important solar incentives available for American homeowners. This credit lets you claim 30% of the cost of a solar system from your federal income taxes for the year. While the credit is available until 2034, it will drop to 26% in 2033 and 22% in 2034 and terminate in 2035, unless renewed.
You can receive the clean energy credit by filling out and submitting form 5695 (PDF) to the IRS. Go over the IRS instructions on how to complete this form. After the IRS approves your documents, your solar savings will appear as a credit when you file your federal tax return. The credit will lower your tax burden and give you a higher refund.
In addition to the clean energy credit, Washington residents can take advantage of a few state incentives.
Washington solar incentives
| Program | Description |
|---|---|
| Net metering | Washington's net metering policy allows solar owners to send their excess solar generation back to the power grid and get credits on their electric bill at their utility's retail value. |
| Solar easement laws | The state's Solar Easement and Rights Laws allow you to voluntarily sign a solar easement agreement with your neighbors to ensure your solar panels have access to sunlight. The laws limit the ability of homeowners' associations to ban solar panel installations on a resident's property. |
| Solar tax exemption | Washington offers a 100% sales tax exemption on all solar systems of up to 10 kW and labor costs pertinent to solar installation. You can claim the sales tax exemption when filing your state tax returns. |
Washington solar companies
The Solar Energy Industries Association counted 153 solar companies operating in Washington, including 46 solar installers. Here are some of the best solar companies you could consider as you contemplate solar.
A&R Solar
Based in Seattle, A&R Solar installs solar panels, batteries, and EV chargers for residential and commercial customers. It also provides energy monitoring services. The company begins its installation with a home energy audit to assess your energy use and identify your energy-saving goals. According to A&R Solar, its in-house experts will review financing options and all incentives before installing a solar system. The company doesn't offer solar leasing or power purchase agreements. A&R Solar says you will get 10-year performance, 10-year quality of work and 10-year free equipment replacement warranties on top of a manufacturer warranty of up to 25 years.
Blossom Solar
Blossom Solar is a full-service solar and battery installer based in northwestern Washington state. Before installation, Blossom Solar experts will conduct an energy audit of your home, help you design your solar system, manage all the required paperwork and local permitting, and organize the final inspection with your city officials. The company states it gives a 25-year product warranty and a 10-year quality of work warranty. It doesn't offer a solar lease or power purchase agreements.
Blue Raven Solar
Blue Raven Solar is a residential solar panel installer servicing 17 states, including Washington. According to Blue Raven Solar, it's a full-service solar company handling everything from sales to installation and providing tailored solar offerings to meet customer needs. The company offers a financing option called BluePower Plus+, which provides free payments for the first 18 months. With Blue Raven Solar, you get a 10-year quality of work and a 25-year manufacturer's warranty. Currently, the company doesn't offer solar leasing or power purchase agreements options. Blue Raven Solar gives customers $250 for each referral it receives.
Puget Sound Solar
Puget Sound Solar has been in the solar business for 20 years. The company installs solar panels, batteries and EV chargers for residential and commercial customers. It also provides 24/7 monitoring of your solar system. With Puget Sound Solar, you get 10-year performance and 25-year quality of work warranties. The company partners with Puget Sound Cooperative Credit Union, Generations Credit Union and Verity Credit Union, offering its customers zero-money-down financing options.
SunPower Solar
SunPower has been manufacturing solar panels since the 1980s.Listed asCNET's best solar company, it makes some of the most efficient and durable solar panels. The company also installs solar panels for residential customers via its large group of SunPower-certified installers. With SunPower, you get 25-year product, performance and quality of work warranties. The company gives you the option to purchase a solar system with cash, finance it or enter a solar power purchase agreement or leasing contract. Its financing branch SunPower Financial offers solar loans to underserved communities at reasonable rates.
Important installation factors
Before going solar, it's good to consider whether potential constraints outweigh the benefits of installing solar panels.
Roof condition and pitch:A roof's pitch can play an essential role in determining the cost of a solar system. See if your roof has the right pitch to maximize solar production. Based on the US Department of Energy's calculations, an angle between 15 and 40 degrees is ideal for panel performance. Consulting with a professional solar installer will help determine if your roof needs repair or replacement before installing solar panels.
Insurance coverage: Incorporating your solar equipment in your homeowner's insurance policy is an excellent way to add more protection to your system. Call your insurance company if your policy would extend to the solar system. If it does, remember to add your solar panels to your insurance after installing them.
Commitment vs. time: Before you commit to solar, calculate how long you will live in your home. Buying or financing a solar system or signing a lease or power purchase agreement are long-term commitments. If you move in a few years, you may not fully realize your solar investment.
Washington solar power FAQs
How long do solar panels last?
Solar panels undergo rigorous testing and are designed to withstand harsh conditions, including strong winds, rain and snowfall. Locations with severe weather conditions often provide specific installation instructions to ensure solar panels' secure and safe placement. While most solar manufacturers give 25-year product and performance warranties, the panels can last many years beyond the warranty period with proper care.
Is it worth getting solar panels in rainy states like Washington?
Yes, it can be worth going solar in Washington. Solar panels produce power using direct and indirect sunlight, which means they still make some electricity during cloudy days. However, their generation capacity will be much lower when it's overcast. Rain has its benefits -- it improves the production of solar panels by washing away dust and dirt.
Will solar panels raise my homeowner's insurance premium?
Typically, the installation of solar panels doesn't lead to an increase in your homeowner's insurance premium. However, every insurance company handles solar panels differently. Therefore, it's worth checking with your insurance company if solar panels will impact your insurance premium and by how much.
FAQs
Do Washington State's Incentives Make Solar Panels Worth It? ›
Yes, solar is worth it in Washington! In fact, solar panels are worth it in most areas, though certain factors – including the cost of electricity, available incentives, the climate, and sun angle – will all impact how quickly you break even on your investment relative to other areas.
Is solar power worth it in Washington state? ›Yes, it can be worth going solar in Washington. Solar panels produce power using direct and indirect sunlight, which means they still make some electricity during cloudy days. However, their generation capacity will be much lower when it's overcast.
How does the solar tax credit work Washington State? ›Customers receive a credit if they produce more electricity than they use, or they are charged if they purchase more than the produce. In accordance with Washington state law, net metering credits expire on March 31 every year and credits from any excess electricity generation are “zeroed out”.
Does Washington State have a solar tax credit? ›Washington State Solar Tax Exemption
For a standard sized solar system, this will save Washington property owners $2,000+ on the overall cost of going solar. This statewide solar tax exemption extends through 2029 and pairs well with the Federal Solar Investment Tax Credit.
Below is a breakdown of the current rate schedule: All systems installed from 2022 through 2032 will receive a 30% credit. Systems installed in 2033 will receive a 26% credit. Systems installed in 2034 will receive a 22% credit.
Do solar panels increase property taxes in Washington state? ›Do solar panels increase property taxes in Washington State? Yes, Washington State does not offer an exemption from increased property taxes resulting from your home's rising value when you install solar panels.
Is there a downside to having solar? ›Solar isn't perfect – here are some disadvantages of solar energy to keep in mind when considering installing solar panels: Solar doesn't work for every roof type. Solar isn't ideal if you're about to move. Low electricity costs = low savings.
What is the average cost of solar panels in Washington state? ›How much do solar panels cost in Washington? From Washington data, it is shown that the average cost of a solar panel installation ranges from $13,090 to $17,710. On a cost per watt ($/W) basis, a solar panel installation in Washington ranges in price from $2.62 to $3.54.
How do I get a $10000 tax refund 2023? ›- Select the right filing status.
- Don't overlook dependent care expenses.
- Itemize deductions when possible.
- Contribute to a traditional IRA.
- Max out contributions to a health savings account.
- Claim a credit for energy-efficient home improvements.
- Consult with a new accountant.
This is a nonrefundable tax credit, which means you will not get a tax refund for the amount of the tax credit that exceeds your tax liability. 15 However, you can carry over any unused amount of tax credit to the next tax year.
What is the solar stimulus program in Washington state? ›
The Washington State Renewable Energy System Incentive Program is a production-based financial incentive for customers with solar, wind, and bio-digester generating systems. PSE voluntarily administers this state incentive to qualified customers.
What is the solar tax incentive in Washington state? ›The exemption applies to systems that generate all the way up to 100 kilowatts AC of electricity and is available all the way through December 2029. Larger systems that generate somewhere between 101-500 kilowatts AC can qualify for a 50% sales tax exemption after January 1st, 2020.
What is the government incentive for solar WA? ›How much are you entitled to. The solar rebate Perth customers can access varies depending on system size (combined solar module generation capacity). Most typical residential subsidies start from $1,569 for a 3.7 kW solar system to $2790 for a 6.6 kW solar energy system.
Will solar panel prices go down in 2023? ›Solar costs are very likely to decrease in 2023, making rooftop renewables affordable for more homeowners. In November 2022, the National Renewable Energy Laboratory (NREL) published its analysis of the cost of solar and energy storage (battery) system installations for the first quarter of 2022.
Will solar prices drop in 2023? ›The first two months of 2023 have already seen significantly reduced solar panel prices. Experts predict significant price drops of 10 per cent every year for the next ten years.
What is the payback period for solar panels in Washington state? ›Average Cost Per Watt: $2.69. Cost of Average System: $18,830* Cost of Energy Without Solar: $37,746. Payback Period: 16 Years**
How much can I write off for solar panels on taxes? ›The credit can apply to a vacation home, but only for the percentage of the tax year that you spend there. The residential solar energy credit is worth 30% of the installed system costs through 2032. 26% in 2033.
Is installing solar a tax write off? ›Installing solar panels earns you a federal tax credit. That means you'll get a credit for your income taxes that actually lowers your tax bill. You can qualify for the ITC for the tax year that you installed your solar panels as long as the system generates electricity for a home in the United States.
Do solar panels increase home resale value? ›Yes, solar panels will raise your home's property value. Although the added value can vary by location, the National Renewable Energy Laboratory (NREL) found that home value increases by $20 for every $1 saved on your utility bills. This translates to a higher market value when selling your home.
What I wish I knew before getting solar panels? ›- Does your roof need repairs? ...
- What is the shape of your roof? ...
- Which direction do the slopes of your roof face? ...
- How much weight can your roof handle? ...
- Where will the water go? ...
- What about nature's other surprises? ...
- How do you connect to the grid?
Do solar panels affect homeowners insurance? ›
Most rooftop solar energy systems are covered by standard homeowners policies, which doesn't change your insurance plan. However, you may need to increase the amount of coverage on your home to account for the cost of the system which can then raise your premium.
How much is a solar system for a 2000 sq ft house? ›A solar panel system that's large enough to meet the electricity requirements of a 2,000-square-foot home costs slightly more than double what you need for a 1,000-square-foot home. The average cost is between $10,500 and $12,500.
Do I need a permit to install solar panels in Washington state? ›You may need approval from your local building official or planning department to site your installa- tion, and you may need a permit and inspection for the mechanical and structural aspects of your installation. Contact your local city or county building official or planning department before doing any work.
Are solar panels financially worth it? ›Electricity Bill Savings
Most Californians pay around $116.94 each month for power, so you'll save just over $1,400 annually if you can eliminate your energy bill. The average lifetime savings enjoyed by California solar customers is around $29,734, and that's after the upfront expenses of going solar are recuperated.
Head of household (HOH) filing status allows you to file at a lower tax rate and a higher standard deduction than the filing status of single.
Is it better to claim 1 or 0 on your taxes? ›By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.
Who gives the biggest tax refund? ›| Rank | State | Average refund for tax year 2020 |
|---|---|---|
| 1 | Wyoming | $4,877 |
| 2 | District of Columbia | $4,462 |
| 3 | Florida | $4,337 |
| 4 | Texas | $4,317 |
Solar panels primarily degrade because of normal wear and tear over time from exposure to UV rays and adverse weather conditions. The rate of degradation is included in a panel's performance warranty.
Can you claim solar tax credit multiple years? ›How Many Times Can You Claim Solar Tax Credit? You can claim the solar tax credit only once. However, you may be able to claim it more times in case you have more than one solar-powered property.
How long do solar panels last? ›The industry standard for most solar panels' lifespans is 25 to 30 years. Most reputable manufacturers offer production warranties for 25 years or more.
Is solar exempt from sales tax in Washington? ›
Washington Solar Sales Tax Exemption
As of July 1, 2019, all solar equipment for systems less than 100 kW is exempt from state and local sales and use taxes. This tax exemption is good through December of 2029 and can often save solar buyers thousands of dollars!
Solar energy provides homeowners with more control over their energy use. Solar offsets the purchase of solar from the utility and means lower bills. For locations with tiered electric rates based upon KWH used per month, solar can reduce the highest cost electricity.
What is Seattle solar Payback Program? ›City Light Solar Programs
If you install a net meter and generate more electricity than you consume, City Light will credit your electric bill for every kWh of electricity sent back to the power grid. Excess generation occurs when a solar energy system generates more kWh of electricity than a home consumes.
Better yet, Americans that installed solar in 2022 expecting a 26% credit will now be eligible for 30%. That's an extra $1,000 in tax credit for purchasing a $25,000 solar or battery system. See how much you can save by going solar with the 30% tax credit.
How many solar panels do I need? ›You can calculate how many solar panels you need by multiplying your household's hourly energy requirement by the peak sunlight hours for your area and dividing that by a panel's wattage. Use a low-wattage (150 W) and high-wattage (370 W) example to establish a range (ex: 17-42 panels to generate 11,000 kWh/year).
Does Washington State have net metering? ›The net metering policy for Washington state is designed to let customer-generators offset their electricity consumption with solar energy production on an annual basis. If you use more energy than you produce during a given bill period, then you pay PSE for your net purchase, plus the basic service charge.
Will solar become 35 cheaper by 2024? ›Solar power
By 2024, it's predicted that solar energy will have become up to 35% cheaper, with the US doubling its solar installations by 2023. PV-based solar power costs continue to decline, in part owing to the uptake of solar panels on houses, particularly across the US, but also across other areas of the globe.
Solar panels last about 20 years, according to the Federal Trade Commission. The great news is that, with proper maintenance, your panel may actually run for as long as 40-50 years.
How efficient will solar panels be in 20 years? ›While today's average panel efficiency rate hovers around 15 percent, analysts predict that by 2027, most premium solar panels will be at least 25 percent efficient. If that trend continues into the following decade, the average high-end panel in 2038 would be over 30 percent efficient.
Are solar panels a good investment in 2023? ›The Inflation Reduction Act (IRA) passed in 2022 has also extended tax incentives for solar installation. While inflation and supply chain challenges have increased the price of solar recently, the reality is that 2023 is one of the best years in recent memory for homeowners to consider investing in solar.
Will solar panels last 25 years? ›
Solar panels, also known as photovoltaic or PV panels, are made to last more than 25 years. In fact, many solar panels installed as early as the 1980s are still working at expected capacity. Not only are solar panels remarkably reliable, solar panel longevity has increased dramatically over the last 20 years.
What is the Inflation Reduction Act for solar panels in 2023? ›Residential solar installations were eligible for a tax credit claim against the project expenditures and subject to a phase-out, with maximum credit of 26% in 2020-2022, which dropped to 22% in 2023, and then 0% in 2024 and thereafter.
What happens after I pay off my solar panels? ›Once you pay off your loan or buy your system outright you will essentially be getting energy for free. When it comes to payment, those who are using solar energy will still get a monthly utility bill. This will show how much energy you produced versus how much energy you used for the month.
How long does it take for a solar panel to pay itself off? ›The most common estimate of the average payback period for solar panels is six to ten years. This is a pretty wide range because there are many factors that will influence the number of years it can take to pay off your panels and the monthly savings you can expect.
How much solar do I need in Washington state? ›Washington Solar Panels Guide
Most homeowners in Washington need a 10-kW system to offset energy costs entirely, which means the average total to go solar is $26,900 before the federal tax credit, or $18,830 after the credit is applied.
Solar panels cost money upfront, but will provide significant savings on energy bills over time. The average home can save between $20,000 and $97,000 over the lifetime of your solar panel system, depending on the cost of electricity in your area.
At what point is solar power worth it? ›If you experience higher electricity rates, switching to solar will likely be a good investment. However, if your home does not require a lot of energy consumption to operate day-to-day, you may not save enough to balance the installation cost.
Is solar worth it financially? ›Electricity Bill Savings
Most Californians pay around $116.94 each month for power, so you'll save just over $1,400 annually if you can eliminate your energy bill. The average lifetime savings enjoyed by California solar customers is around $29,734, and that's after the upfront expenses of going solar are recuperated.
A 2000 square foot house will need 28- 34 solar panels, which comes out to an average cost of \$3.50 per watt. Not only will installing solar panels save homeowners money on their electric bill, but they can also increase the value of their home.
Is solar feasible in Washington state? ›Most of the time, installing solar panels comes with an upfront fee but will save you a significant amount over time. The most substantial savings will be seen on your monthly energy bills. The average Washington resident pays around $95.72 for energy each month, which means you could save about $1,149 every year.
Do the pros outweigh the cons of solar panels? ›
Bottom Line. The pros of solar energy considerably outweigh the cons. It may take several years, but purchasing and installing a solar system can eventually result in major savings on electricity for the consumer in addition to benefits for our environment.
Why are my solar panels not saving me money? ›Your Home Is Using Too Much Power
If your solar panels are not reducing your bill, it can be because: Your system is generating less electricity than you use. You're using too much electricity at night when panels aren't generating it. Too many appliances or devices are plugged in.
Yes, you can run an air conditioner with solar power.
Be that as it may, you may be connected to the grid or be completely off-grid. Both of the systems will allow you to power an AC with solar energy. It will reduce electricity costs rapidly.
Solar costs are very likely to decrease in 2023, making rooftop renewables affordable for more homeowners. In November 2022, the National Renewable Energy Laboratory (NREL) published its analysis of the cost of solar and energy storage (battery) system installations for the first quarter of 2022.
What time of year is best for solar power? ›While most people associate solar energy with summer, it's actually the winter season that provides the best opportunity for new solar panel installations. With the colder weather, the snow, the shorter days, it may be difficult to believe, but it's true.
How long do solar panels take to pay for themselves? ›The most common estimate of the average payback period for solar panels is six to ten years. This is a pretty wide range because there are many factors that will influence the number of years it can take to pay off your panels and the monthly savings you can expect.
Are solar panels worth the hassle? ›Yes, getting a solar panel system is worth it for the excellent financial benefits and cost savings. However, solar panels aren't suitable for everyone. Residents with low energy needs, low electricity rates, or year-round inclement weather may not save money from a solar system.
Does solar make you money? ›For those seeking an investment option in the solar sector, solar company stocks or ETFs are a good option. People can also profit from solar energy by having solar panels installed on their own homes or businesses in order to take advantage of net metering to reduce utility bills.