Have you noticed solar panels cropping up on more and more roofs in your neighborhood?
Their popularity might be surprising, given how long and dark our winters can be, but solar panels can be a great investment in Washington State.
Even though it takes longer to break even on solar in Washington than it does in a sunny state like Arizona or Florida, benefits like improved energy security, lower monthly bills, and excellent incentives make solar panels worth the cost for many local homeowners and businesses.
Solar Panel Installation Costs in Washington
Solar panels are not an insignificant investment, but they’re getting more affordable. The national average cost of a residential solar installation dropped from $3.40/watt in 2023 to $3.25/watt in the first quarter of 2024, according to the Solar Energy Industries Association. And in Washington, our price per watt tends to be lower than the national average. Falling costs, coupled with strong incentives, make now a good time to invest in solar panels for your home.
What Impacts Solar Installation Costs?
Solar panel costs can vary significantly depending on factors like system size, location, roof design, battery additions, and more. It’s important to think about these factors and how they’ll impact your costs vs savings before you decide whether solar is worth it for you. Solar might not be right for you, not because the installation is too expensive or because solar “doesn’t work” in Washington, but because your roof is just not a good fit due to factors outside of your control.
- System Size – Big, complex systems are, naturally, more expensive to install. But they can also provide a better bang for your buck because the price per watt will go down as the system size increases. There’s no financial incentive to install a larger system than you need, but if your electricity consumption is high, you will see a better financial return from installing solar than you will if your consumption is low.
- Location – Solar panels need sunlight to generate electricity. If your house is in the middle of the forest and surrounded by trees, your solar panels will be heavily shaded, which significantly reduces their output and, ultimately, your savings.
- Roof Orientation & Design – Your roof’s orientation impacts the amount of sunlight you receive and its design impacts the number of panels you can install. South-facing roofs are ideal for sunlight access, which makes them the best fit for solar panels. That’s not to say you can’t benefit from solar if your roof faces a different direction, but it will impact your overall output and savings. You also have to consider the amount of space you have on your roof. If you have a ton of skylights, for example, you might not have enough space to install the number of panels you need to meet your electricity consumption.
- Battery Additions – Solar batteries give you access to backup power during a grid outage, which is highly beneficial. But they are not cheap. Adding a battery to your solar installation will significantly increase your overall payback period. In this case, it’s important to consider the non-financial benefits, like energy security and resiliency, to decide whether it’s worth it.
Because there are so many factors at play, it’s impossible to provide a blanket estimate that will apply to all solar installations in Washington State. Every system that we sell is custom-designed for the specific home, so the only way to accurately determine how much solar would cost you is to reach out to the Cascadia Solar team. We would be happy to provide a free, personalized estimate for a solar system tailored to your specific needs.
Breakeven Point for Solar Panels in Washington
Solar panels are an investment that pays for itself through electric bill savings. The amount of time it takes for this to happen is known as the breakeven point. Your breakeven point will depend on the size of the system, installation cost, utility rate structure, and electricity usage. We’ve seen breakeven points ranging from 10 to 20 years for the residential solar installations we’ve completed in WA state. But payback period is very project-specific, and we can’t provide an accurate estimate without more information about your home and electricity usage. Give us a call and we would be happy to crunch the numbers for you!
Solar Incentives in Washington
Washington has strong solar policies and offers great incentives for home solar panels.
- Solar Tax Credit – A federal incentive that reduces your net installation costs by 30% via a federal tax credit.
- Net Metering – A billing arrangement that allows you to “sell” solar power to your utility. Washington utilities are required to credit you at the full retail rate for the power you export to the electric grid. Your credits roll over month-to-month, so you can bank credits during the long summer days and use them in the winter when your solar panels produce less electricity. But your account resets once a year, which is why we size your system based on the amount of electricity you expect to consume in a year. There is no financial benefit to installing a larger system than you need.
- Tax Exemption – Solar panels are exempt from sales tax in Washington. Energy storage systems are also exempt when installed with solar panels.
Commercial solar panel systems are eligible for additional incentives. Learn more about Washington State solar incentives.
Benefits of Solar Panels in Washington
Energy Security & Backup Power
Having a backup power source is essential to your emergency preparedness plan, and solar with battery storage is a great option. The only way to have power during an outage is by integrating a battery into your solar system. Without a battery, you will not have power, even if you have solar panels on your roof and the sun is shining! Battery systems work by disconnecting your home from the grid automatically during an outage. Your home is then powered by the solar and battery system, and the battery will charge when the sun is out. For many Washington residents who require medical devices or emergency systems, solar plus storage is a game changer. But regardless of whether you need it for a medical device or simply to keep your essential loads running, solar plus storage can be worth it for the peace of mind alone.
Monthly Electric Bill Savings
We’re lucky to have some of the lowest electricity rates in the country, but demand for power is rising fast. Think of how much electricity you consumed 10 years ago vs the amount you use now. Air conditioning, electric cars, and endless gadgets have skyrocketed our demand for energy and the growth will continue. Higher demand for electricity can lead to utilities raising electricity rates because they need to generate more power to meet the demand, which costs money. By adding solar panels to your home, you can shield yourself against rising electricity rates by generating your own renewable energy right at home.
Less Fossil Fuels
Washington has a clean electric grid compared to most of the country, but it’s not perfect. In 2023, hydroelectric power accounted for 60% of Washington’s electricity generation, according to the US Energy Information Administration. Natural gas, however, was our second-largest source of electricity generation, accounting for about 18% of total generation. Although Washington’s fossil fuel consumption is low, it’s not zero, and hydropower, while renewable, has its downsides, namely its impact on wildlife such as salmon. Installing solar panels on your roof is one of the best ways to reduce your personal fossil fuel consumption and help Washington move toward a cleaner and more resilient future.
Increased Home Value
Solar panels are a home improvement that generates equity. According to research conducted by Zillow, houses with solar panels sell for 4.1% more than comparable houses without solar power. For the median-valued home in Washington State ($613,000 according to the Office of Financial Management), an additional 4.1% translates to $25,133!
The Final Verdict: Solar Is (Usually) Worth It
We believe solar panels are worth the cost for most homes and businesses in Washington. While the monthly savings may be lower than they are in sunnier states with higher electricity rates, Washington residents will still see a good return on their investment in solar panels. But solar isn’t right for every home or business. Cascadia Solar can evaluate your home’s solar potential, estimate your savings and payback period, and help you decide whether they’re worth the cost for your home or business. We offer free, no-obligation estimates and proposals so you can make an informed decision about switching to solar.
