Solar Energy in Washington State

December 6, 2022

The solar industry in Washington has expanded a great deal over the last three decades, and it’s no wonder why! With government incentives and competitive industry prices, solar panels are becoming increasingly accessible to many Washington State residents. Solar panels in Washington state are made for all the elements the northwest brings to the area. In fact, solar panel installation costs have decreased significantly. Also, governmental bodies have removed many of the obstacles that used to stand in the way of Solar panel setup, while utilities have begun taking steps to encourage people to switch to this renewable energy source.

Resident and their new solar panel installation they just got from Solgen Power

Residents’ new solar panel installation they just got from Solgen Power.

Washington State ranks 32nd among all states in the nation for solar power and total installed capacity, making it one of the top states for solar power in America today. The Solar power Washington State produces helps plenty of communities save on their utility bill every single month. With more than 30 community solar projects already completed and 131 companies offering installation services or products such as panels and inverters, Washington is a growing community solar market.

Now is an excellent time to invest in solar energy, and we will explore why. This article will also touch on the several advantages of solar energy in Washington State specifically and what makes this state a desirable option for solar implementation, from residential rooftops to large-scale solar farms.

Why Solar in Washington is Very Good

The advantages of adding a solar power plant at your home or office in Washington greatly outweigh the alternatives in many circumstances. It is attributable to Lock-In Energy Prices.

You may lock in your existing electricity rate by purchasing a solar energy system connected to your utility company grid. Electricity prices climb by a median of 3.75% per year, so locking in the current power prices now can keep your bills stable for many years and save you income. The Washington State solar panel is a durable panel that will last years on the property.

The authorities of Washington, have taken some major actions to encourage people to purchase and install solar panels in their homes. There are so many benefits of solar panel installation in D.C. So, let’s see why solar panel installation is the wisest decision if you live in D.C. and how you can make the most profit from it.

Low Cost Of Installation:

As solar panels and renewable energy gain popularity and public acceptance, more appealing financing solutions are becoming available. It is because the solar power installation cost is less than its benefits. The estimated net cost of constructing conventional 5kW photovoltaic panels in Washington is more than $14,100. However, you can significantly reduce the cost through various solar tax incentives.

The Washington Investment Tax Credit (ITC) returns 30% of the entire cost in terms of federal tax credits. For instance, if your installation costs $30,000, you would receive $9,000 as tax credits. If you have taken a loan for solar grid installation, the overall repayment time is 9.4 years. Besides, it also brings up a 20-year benefit of more than $17,600.

Solar Energy Sales Tax incentives:

To encourage people to invest in solar power plants federal government has announced several tax incentives. The Inflation Reduction Act of 2022 retains the 30% tax credit for Washington residents until 2032. However, it will reduce to 26% in 2033 and 22% in 2034, eventually expiring in 2035, except if the government prolongs it again. This new legislation replaces the existing one, which would have ended the incentive in 2024.

Earning Through SRECs:

When sunlight hits your solar panels, they generate renewable energy. A kWh of solar panels may generate up to 0.85 MW of electricity yearly. You will receive one SREC (Solar Renewable Energy Certificate) for each M.W. produced. These SRECs can be sold on the SREC marketplace. Due to a strict RPS in D.C., you may get around $380 and $435 for each SREC.

Tax Exemption For Going Solar:

Solar systems in Washington state are free from sales tax. Homeowners can receive all of the advantages of setting up their solar power system beginning July 1st, 2019, without needing to pay any taxes on the purchase and setup expenses for the unit.

The waiver is valid until December 2029 and applicable to no more than 100 kw A.C. power plants. Larger systems are generating 101-500 kw. A.C. has been eligible for a 50% sales tax exemption since January 2020. It can balance the total energy usage of a typical residence in the United States with a 5 kw setup. With a program of that magnitude, homeowners can save $2,000 or more on solar purchasing and setup costs. That equates to an 8% average savings.

Net Metering:

Net energy metering is how solar grid owners can sell surplus electricity from their system to the main grid. The utility offers credit for electricity supplied to the grid under Washington solar incentive. Moreover, The owner can subsequently reclaim that amount of electricity from their supplier.

While you are out for the day, your solar panel can accumulate energy credits to utilize when you return home. Besides,  Washington provides one-to-one compensation for this procedure, so you can consume the amount you want for free each year!

For instance, in June, you consume 800 kw of electricity (kw) (a usual per day usage). If your photovoltaic system generates 1200 kWh, you will receive 400 credits from your supplier that month. Just don’t forget that this credit is zeroed out every year in May.

REAP for Solar from the USDA:

The USDA’s Rural Energy for America Program (REAP) offers grants and loans to qualified remote smaller companies and local farmers to build new photovoltaic systems or enhance the power efficiency of the current systems. REAP grant and credit requests are separated into three levels based on the planned project’s overall cost, so tiny economy upgrading initiatives do not compete for funding with enormous ocean hydropower plants. Tier One projects are those that cost below $80,000, Tier Two projects are those that cost between $80,000 and $200,000, and Tier Three projects are those that cost over $200,000.

REAP has a stable financial baseline of $50 million yearly, with extra reserve income frequently available to sponsor as many projects as feasible. You can request a grant, a mortgage, or a mixture of the two depending on the needs of your planned project.

Is it Worth It to Purchase Solar Panels in Washington?

Yes, it is worthwhile to get photovoltaic power in Washington. Solar energy is the power source of the future, and the federal tax incentive greatly helps fund each solar installation in Washington. Solar electricity powers more Washington families daily, so going solar means remaining on pace. Grid to Vehicle In the next years, charging techniques will make the Washington grid even more sustainable. It also has the most advanced Renewable Portfolio Standard in the United States, requiring that 100% of renewable sources of electricity be used for power generation in the District by 2032. Your solar panels can assist you in saving money while also helping to reduce global warming. You may also earn extra money by selling photovoltaic renewable energy credits.

Residential Solar:

Washington solar panels are beneficial for the typical citizen in the area. Washington’s longer summer temperatures can compensate for the dismal winter days in energy production. Residential solar photovoltaic systems have emerged as a potentially cost-effective approach to expanding solar in Washington State and the United States. This convenience is due to two specific reasons. First, household solar decreases transmission constraints on an often aging grid system. Second, solar cells outperform conventional systems in terms of power output and affordability.

Solar energy is becoming more popular in Washington. The overall solar power capacity in 2007 was 0.5 MW. Approximately a decade later, it had increased 120-fold to 59 M.W. Meanwhile, as the cost of solar energy systems and rooftop solar has decreased, total solar power capacity has grown to 151.7 MW or 57.6% of overall electricity output.

The number of solar installations in Washington has increased by more than 200% over the past 30 years. It can be attributed to the state’s commitment to renewable energy and its efforts to reduce carbon emissions. In 2017, Washington State passed a bill that requires certain utilities to use 100% renewable energy by 2045. The state also has the nation’s largest solar market, with more than 31,000 homes powered by solar energy.

The average price for residential solar installation has fallen 53%, from $7 per watt in 2013 to $3 per watt today—making it an increasingly attractive option for homeowners looking for greener ways to heat their homes or run appliances. 31,422 homes have installed residential solar systems since 2013. It is because people understand now that adding a solar system may help you save large sums of money annually, particularly when Washington statewide solar credits and other refunds are included.

Solar Farms:

Solar farms are a great way to help power multiple city blocks in Washington. By installing solar panels on municipal buildings, such as schools and city halls, solar farms can generate enough electricity to power multiple city blocks. It is a great way to reduce energy costs and help municipal power buildings without relying on fossil fuels.

Solar farms are a newer method of harnessing the potential of renewable energy. In Washington State, many community solar farms have been established to assist power various cities. Local solar farms, also called community solar gardens are sustainable energy projects that serve a collection of families, institutions, or companies. This approach allows members to get the benefits of renewable energy without needing to put solar P.V. systems on their houses.

Community solar initiatives use a Digital net metering technique that allows utility consumers to get points on their energy bills using electricity produced by the solar installation. Customers often get two bills: one issued by the utility provider and a second from the solar plant.

The power produced by community solar farms is typically more cost-effective than grid connection from the local power company. This ownership model is unique to the P.V. industry and enables more families and companies to participate in the sustainable energy revolution.

More than 3,000 megawatts of P.V. capacity can be found in community solar farms in 39 U.S. states and Washington However, some states have significantly more than others. This idea is gaining traction, particularly in places with favorable laws and regulations. The largest-scale solar farm in Washington, DC, with 7,800 solar panels, was launched in District 8.

The farm is located on 15.44 acres of metropolitan area property. Residents of the area can sign up for up to 4,100 kWh of free energy per year and save up to $230 annually. This solar community program seeks to provide solar energy advantages to over 100,000 low and moderate-earning families by 2032.

Assume you earn under 80% of the region’s median salary ($100,000) and decide to invest in local solar plant shares. For more than 15 years, you may save up to 50% on your power cost.

How Does the Future Look for Solar

Solar energy is the quickest energy source in America, responsible for more than 40% of all additional electricity-producing capability. Analysts predict that overall solar capacity in the United States will treble over the next ten years. The EIA anticipated that solar energy would account for 42% of power production by 2050 in its Annual Energy Outlook in 2021. According to the government agency, this percentage would more than quadruple from its present level of 21%. Washington now has the most solar electricity accessible.

According to the EIA, wind power will account for most of the renewable increase through 2024. However, since its tax credit expired at the end of 2021, solar energy became the primary source of development. Between 2024 to 2050, solar plants will account for 80% of renewables expansion. This statistic covers both utility-scale and residential solar installations. Hence, The federal government is looking forward to full most of the energy requirement through solar systems by 2050.

Final Words:

Renewable energy sources are seen positively in Washington. Hydroelectric power, a clean energy source, accounts for most of the state’s electricity generation. Washington employs some fossil fuels to generate energy, but most electricity comes from renewable sources such as bioenergy and solar. Washington’s Renewable Portfolio Standard (RPS) targets are among the most stringent in the country, with the state aiming for 100% renewable energy output by 2045.

In Washington, solar incentives and legislation are hugely advantageous, which has resulted in tremendous growth in the number of household rooftop solar plant installations over the last decade. The solar business in Washington is expected to expand and develop, possibly leading to solar being as prevalent as other alternatives in the state.



Solgen Power is a solar energy equipment company that sells and installs solar for homeowners. Solgen Power has been recognized by INC. 5000 as one of the fastest growing companies in the nation. Solgen Power has grown nationwide and continues to provide excellent customer service to homeowners.

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