Are Solar Panels Worth It in Washington?

7 factors to consider before getting solar panels in Washington

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including dozens from Washington. Here’s what to consider before making the switch.

1. Solar panel installation costs

2. Potential long-term savings

3. Local solar incentives

4. How you pay

5. How long you stay in your house

6. How much you care about the environment

7. Which solar company you hire

1. Solar panel installation costs

Average solar panel costs in Washington are comparable with the national average. A typical Washington household needs a 7.1 kW system, which costs approximately $18,957.

The size of your system is the biggest cost factor. You might need a larger or smaller system, depending on your current energy consumption. On the high end, we've heard from solar customers in Washington who spent more than $50,000 going solar.

Getting your electrical loads as low as possible before going solar is helpful. That way, you can get a smaller, cheaper system overall. If you have older, inefficient appliances, consider upgrading them before investing in solar panels.

Solar panel costs by system size in Washington

2. Your potential savings

On average, Washington homeowners with solar panels avoid $33,367 in total utility costs over 25 years. You get the most out of solar if your appliances are electric. Solar panels will save you even more if you also have an electric vehicle.

It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, you’ll likely pay less than you would for traditional utility bills. Randy in Vancouver told us his monthly utility bill went from $300 to about $12, and Anthony in Seattle said his went from $400 to $40. 

3. Solar incentives in Washington

The 30% federal residential solar tax credit is gone, but Washington still has a few ways to lower solar costs. Qualifying home solar systems are exempt from sales tax, and some homeowners may qualify for special financing. Net metering can also add to the savings.

Through net metering, Washington homeowners earn bill credits for extra solar power sent to the grid. Those credits are generally based on the retail electricity rate and can roll over from month to month.Unused credits expire March 31 each year without a cash payout.

Washington’s current net-metering rules are guaranteed for new eligible customers until a utility reaches its state-set capacity limit or June 30, 2029, whichever comes first. After that, utilities may use different rates or rules for new solar customers.

4. How you pay

It’s great if you can pay for the whole thing upfront. You own the system from day one and and you don’t have to pay interest on a loan.

Of course, cash isn’t always an option. That’s when loans, leases and other agreements come into play.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreements are similar to leases. A PPA lets you buy power from a third-party company that owns and installs solar panels on your property.

5. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 15.63 years on average in Washington. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

In other words, don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.

6. How much you care about the environment

For some, the savings are nice but not a primary motivator. Richard in Lakebay told us the decision to go solar was “based on reducing the impact our all-electric home imposes on the environment.”

However, since Richard’s utility company already mostly uses clean energy (hydroelectric power), his solar installation has a smaller environmental benefit overall. “But we hope to set an example for others,” he said.

7. The solar company you hire

We’ve heard from dozens of solar customers in Washington. One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered.

For instance, Lyubov in Tacoma was promised significant savings, but in reality, they save $35 to $56 each month. “It would take 123 years for the system to pay itself off since with interest we are paying $51,000 and even without the interest it would take 100 years for the system to pay for itself,” Lyubov told us.

That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit. 

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Washington averages 2.5 to 3.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the size and angle of my roof? Washington (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

Pros and cons of solar panels in Washington

In the best-case scenario, it’s easy, and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support.

Benefits of solar panels in Washington

Solar panels reduce your carbon footprint, protect you from future energy cost increases and (often) increase property values.

• Energy independence: “Some people do it to lower the bill, but I'm just doing it for backup,” Rick in Clarkston said. Embracing solar paves the path toward true energy independence. It especially works out for people in areas susceptible to power outages.

• Cheaper energy bills: The average homeowner in Washington uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower).

• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.

• Higher home resale value: Installing solar panels can significantly increase a home's value. According to a Zillow study, houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

Drawbacks of solar panels in Washington

Some areas of the state get very little sun, so you may not be able to produce enough energy to make it worth it where you live.

• Solar equipment is expensive: It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates continue to decline in Washington. That way, you can store energy at home instead of tapping into the local grid when you need to.

• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.

• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Washington

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Washington’s top solar companies to learn more.

Washington solar FAQ

Bottom line: Is going solar in Washington worth it for you?

While benefits like bill savings and eco-friendliness motivate many, high costs and long payback periods give some buyers pause. The estimated net savings with solar panels in Washington aren’t as much as in other states, but panels still help people lower their monthly utility bills.

Solar costs vs. savings: Washington and nearby states