Washington electricity prices average $0.10/kWh, well below the national average of $0.14/kWh.
Thanks to the Columbia River, Washington leads the nation in generating hydroelectric power- and folk music about hydroelectric power. Commissioned by the Bonneville Power Administration, in 1941 Woody Guthrie toured the Pacific Northwest and in a single month wrote twenty six songs about the construction of public works along the region's rivers. Many of the songs featured in the documentary Columbia. The most popular of these songs, "Roll On Columbia," became Washington's official state folk song in 1987.
Most solar in Washington comes from rooftops. The state didn't have a utility-scale solar PV project until 2018. The state's Renewable Portfolio Standard (RPS) does not mention a solar carve out. On the bright side, in 2019 Washington reinstated a total sales tax exemption on equipment, services , and labor and related to home PV installations of up to 10kW.
Cost of a Solar Install
A graph of steady prices for a typical 5kW PV install in Washington from 2016-2018. Figures include design costs. Data from Berkeley Lab, courtesy of Washington State University.
The average cost of a 5kW (equivalent to saving almost 100 trees a year) solar power system starts around $19,000 in Washington. Before any incentives, in the first year you’d save about $500, compared to if you had been paying the normal rates for the energy you used. These savings can continue for well over 25 years, improving with inflation.
Just How Much Can I Save With Solar in Washington?
This depends on may factors such as your system size, power output, and financing. Here are the main ways you can finance your home solar power system, and the kinds of returns you may expect to see:
Out-of-Pocket
From our example above, the homeowner purchased a 5kW system to offset their energy bill. Overhead cost was $19,000, with a significant proportion returned in the first year through incentives, rebates, and savings, then paying itself in full over 16 years.
Most solar power systems have a warranty lifetime of 25 years. In that time, between incentives and paying lower rates you could make a profit of around $9,000 - in addition to improving the value of your home by around $9,500.
Even with occasional maintenance or part replacement, that is a massive savings. Solar panel power output falls on average 0.8% per year, so with a little TLC and load management you can extend the life of your system well beyond the warranty’s expiration date, continuing to save indefinitely.
Solar Loan
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Whether or not you can afford the up-front cost of the install, you may want to consider a Home Equity Line of Credit (HELOC). With equity in your home, or good credit, you may qualify for a 15-year solar HELOC with fixed rate of 4% or lower.
Starting with that same 5kW system costing $19,000 but with zero up-front cost, accounting for incentives, credits, rebates, and annual energy savings starting around $500, you could see a revenue surplus of about $5,000 at the end of the first year.
Save that money though. Your loan payments will likely exceed your power savings during the 15-year term. Once the loan is paid off, you can expect to save about $800 a year. Over 25 years you could expect to make about $1,000, in addition to improving the value of your home by around $9,500.
Power Purchase Agreement
Washington does not allow Power Purchase Agreements.
What Incentives are Available in Washington State?
