Benefits of Solar Energy
Solar energy has several advantages that will enhance your home for years to come.
- Better energy independence: Solar energy can keep your home functioning through emergencies and blackouts. You can use your solar energy anytime with optional battery backup.
- Lowered energy bills: With a solar array, you create power without paying the tacked-on costs of grid-tied power. You can eliminate your bills completely if you go off-grid. Plus, a significant number of states offer net metering, which permit you to earn money by selling your unused energy back to the grid.
- Reduced carbon footprint: Solar is one of the universe's most abundant clean energy sources, meaning you can minimize or conquer your home's dependence on fossil fuels.
What Solar Incentives Are Available to Olympia Homeowners?
Washington agencies and electric companies offer a number of solar incentives to help reduce your solar system costs. Here is a breakdown of relevant solar programs where you live.
Incentive Type: Feed-in Tariff
Website: energy.wsu.eduIncentive Amount:
FY 2021: $0.02/kWh - $0.10/kWh
Incentive Type: Sales Tax Incentive
Website: dor.wa.govIncentive Amount:
100% exemption for sales of forest derived biomass used as fuel;
100% exemption for solar photovoltaic systems 10 kilowatts or less, and solar thermal systems;
75% exemption for other qualified systems
Incentive Type: Green Building Incentive
Website: commerce.wa.govIncentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Olympia
The more informed your company investigation is, the better your solar system will ultimately perform. Make your choice based on the following crucial aspects.
Licensing and Training
Solar companies in Washington must hold an electrical contractors' license from the Department of Labor and Industries. In some situations, the department may also conduct permit inspections to confirm compliance and the integrity and viability of a contractor's job. Look for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar industry's most respected trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Olympia
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power and generally have the highest quality. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
Additional system add-ons, such as electric vehicle (EV) chargers and battery storage, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not every solar company offers these additional features, so look for a company that sells them if it's a priority for you.
Most Olympia homeowners choose solar systems designed for five kilowatts (kW) of electrical capacity. These systems run about $17,950 to install, considering both materials and labor. You can find more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,178 |
| Solar Polycrystalline | $919 |
| Thin-Film | $537 |
| Solar Battery | $754 |
| Solar Home EV Charger | $2,827 |
Financing Solar Energy in Olympia
Solar installers offer multiple different financing options to increase your savings and lower your costs. Though some providers offer unique payment plans, the most common are solar leases, solar loans, cash payments and power purchase agreements (PPAs). Though it requires a large up-front payment, cash is the most cost-effective choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the runner-up option. As with a home or auto loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate based only on the energy you use, like an electric bill. We usually don’t recommend these two choices because you won't own the solar system and cannot use solar incentives. Look for providers that offer several payment plans to find the right fit for your budget.
The table below lists the average payback periods for different capacities of solar systems in Olympia.
You can claim a 26% federal solar tax credit from the IRS for new residential solar systems purchased before 2032. Additionally, local governments and utilities may have their own rebates and financing plans that could reduce your total cost even more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.5 years |
| 2 kW | 5.0 years |
| 5 kW | 12.4 years |
| 10 kW | 24.9 years |
Ready to Get a Quote on Your Solar Project?
Please enter a valid 5-digit zip code!
Frequently Asked Questions About Solar in Olympia
How much energy and money could I save per year by switching to solar?
Is solar energy easily accessible in Olympia?
Should I expect a boost in my property value after installing solar panels?
How can I determine my property's solar viability?
What care do my solar panels need, and how often do they need it?
What size should my new Olympia solar system be?
What's the difference between a PPA and a solar lease?
If you choose a lease, you'll make set payments each month.
With both leases and PPAs, you do not own your panels and lose eligibility for some incentives. Further, you'll have to "buy out" or transfer the contract if you sell your home during the term.
How many estimates should I get before making a final solar company decision?
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
