Adding solar panels and switching rate plans can lower your Pacific Power Washington electric bill
Updated: October 22, 2020Installing solar panels can help reduce your Pacific Power bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
On this page:
Solar panel cost calculator
Are solar panels worth it for Pacific Power Washington customers?
Probably not. Washingtonians enjoy extremely low electricity prices because of the state's vast hydroelectric generation resources. This is very good for your pocketbook as a utility customer, but it means that solar panels pay you back much less here than they do for people in other states. Add to that the fact the Pacific Power's Washington service territory is awfully cloudy during much of the year, and you get an equation that doesn't add up.
A few years ago, Washington offered some very good incentives to help homeowners earn extra payments for each kWh of electricity produced by their solar panels. The incentives actually made cloudy Washington one of the best states for solar panel payback in the entire country. Of course, those incentives were so wildly popular that they we all gobbled up by early solar adopters, leaving the current "blah" savings picture behind for anyone who has not already made the switch to solar.
Does Pacific Power Washington offer net metering credits for exported solar power?
Yes, Pacific Power Washington offers net metering credits.
Under the Pacific Power Washington net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
What incentives, tax credits, and rebates are available to Pacific Power customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a Pacific Power customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$9,156 |
|
Renewable Energy Sales and Use Tax Exemption
(State)
Sales and use tax not applied to machinery/equipment used to generate at least 1 kW but no more than 100 kW of electricity with solar energy. |
Varies |
|
Net Metering
(State)
All utilities must offer net metering, credited at retail rate and carried over month-to-month. Excess credits surrendered to utility on April 30 of each calendar year. |
Varies |
| TOTAL | -$9,156 |
*Based on 14.05 kW system, average installation cost $30,521
How much does installing solar panels save the average Pacific Power Washington residential customer?
If you input the details for a Pacific Power customer with a power bill of $170 per month into the best online solar panels calculator, it tells you that you need a 14.05 kW solar system that will produce 19,061 kWh per year and that this system will return the owner a $40,462 profit after repaying the cost of the system.
The solar savings possible for you as a Pacific Power customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical Pacific Power customer with a $170 per month electric bill prior to solar and who installs a 14.05 kW solar system.
How much do residential solar panels cost for Pacific Power customers?
Showing data for:
Prices based on a 12.3kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$28,495-$34,828
Payback period
10.6-12.9 years
Recommended size for the selected utility bill
12.3kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 14.05 kW |
|
Annual Power Generation 19,061 kWh |
|
Pay-back time (assuming Cash purchase) 11.2 Years |
|
Internal Rate of Return (IRR) on Investment 2.9% |
|
Gross cost $30,521 |
|
Total Upfront Incentives and Rebates -$7,937 |
|
Net Cost of System after rebates and incentives $22,591 |
|
Total Cost of Utility Power Avoided over 25 years $63,053 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Pacific Power Washington customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Pacific Power Washington customer installing a 14.05 kW solar system on their property:
A solar system generating 19,061 kWh per year will save you money AND make the world a nicer place
Saves you
$1,618
on average per year
Reduces CO2 emissions
9.44
tons per year
Equivalent to planting
66 trees
per year
Equivalent to driving
20,872 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Pacific Power Washington customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.17 per watt or $22,591 for a standard 14.05 kW solar system after the customer claims the 30% federal solar tax credit.