Solar vs. Grid Electricity in Washington
Compare the 25-year cost of solar energy to staying on grid electricity, accounting for utility rate escalation, panel degradation, and IRA credits.
In Washington, the average homeowner pays $11.2¢/kWh for grid electricity. With historical escalation of 3-8% per year, this rate is projected to reach $29.9¢/kWh in 25 years (at 4% escalation). A 7 kW solar system locks in an effective rate of $0.187/kWh for the life of the system.
The math is straightforward: grid electricity costs more every year while solar LCOE stays fixed. By year 10, the utility rate reaches approximately $16.6¢/kWh, nearly 0.9x the solar LCOE. This growing gap is the engine that drives solar ROI.
25-Year Cost Comparison
| Metric | Solar | Grid Only |
|---|---|---|
| Effective rate (year 1) | $0.187/kWh | $11.2¢/kWh |
| Effective rate (year 25) | $0.187/kWh | $29.9¢/kWh |
| 25-year discounted cost | $31,476 | $23,168 |
| Net savings (NPV) | -$1,502 | |
Solar in Washington produces 1,100 kWh per installed kW per year. A 7 kW system generates 7,700 kWh annually, offsetting 73% of the average household's 10,500 kWh annual consumption. After the 17-year payback period, every additional year of operation is pure savings.
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