Your 2020 guide to getting solar panels for your home in Wyoming
This page is a complete guide to the complicated and sometimes confusing process of installing solar panels on your Wyoming home. Since there's a lot to consider, we've separated the page into sections to help you find what you are looking for. If you find this page useful, please share it with someone who might also find it interesting!
** What's new for 2020 **
Wyoming continues to be a strong place to consider investing in home solar, not because of much work your legislators are doing, but mostly because costs have fallen and there's a high amount of sunshine blanketing the state. It helps there's a decent net-metering policy here as well, which ensures you get some credit for the solar energy you send back to the grid when you aren't using it at home. Read on to learn all you need to know about investing in home solar in Wyoming!
Questions? Our network of solar experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page. You can get discounted on-grid pricing as low as $4,000/kW! This is paired with the Wyoming solar incentives you see below.
What you'll find on this page:
The Solar Strategy section is focused on the 3 ways of paying for solar in Wyoming, so you can decide which is best for you. We've created a tool that asks you a few questions and recommends whether you should pursue a solar lease, loan, or outright purchase. Then, we provide detailed analysis of how each works.
The Policy Information section contains all our latest research on the rules set by lawmakers and the Public Utilities Commission, which determine how easy it is to go solar in Wyoming. These policies and rules govern everything from renewable energy mandates to interconnection, and have a huge effect on the viability of solar.
Finally, the Solar Incentives section includes information about money-back rebates and grants, tax credits, and tax exemptions for going solar in Wyoming.
Click any of the boxes below to go to that section of the page, or scroll down to read the page in order.
|Your Wyoming Solar Strategy|
|Comparing Solar Investment Options|
|Paying Cash for Solar in Wyoming|
|Solar Loans in Wyoming|
|Solar PPAs in Wyoming|
|Solar Purchase Payback Time in Wyoming|
|Wyoming Solar Policy Information|
|Renewable Portfolio Standard (RPS)|
|RPS Solar Carve-Out|
Your Solar Strategy in Wyoming
Figuring out the best way to go solar in Wyoming can be a little daunting. From loans and leases to power-purchase agreements, there are a lot of options out there. To help you pick the one that might be best, we've created the handy decision tool below.
We'll ask you a few simple questions about you and your home. Once you're done, we'll recommend a good option. Further down this page, we provide cost estimates and example return-on-investment calculations for all the various options:
How to pay for solar panels in Wyoming
The chart above shows the 25-year returns for an investment in solar whether you choose to purchase a system with cash or pay over time with a loan. Here's the thing about Wyoming: the state has next to zero incentives or policy that make solar a good idea, but it's actually still not that bad of an investment here. That's because prices for solar have fallen dramatically over the past decade or so, and even Wyoming's nearly non-existent solar policy and low electricity prices can't keep it down.
Now as for that complicated chart above... let's break it down a little:
The green bars show solar's financial return over 25 years if you pay up front. As you can see, there's a big payment (negative) in year 1, which gets slowly reduced over time. The green bars cross the "$0" line at year 16, which is when the system will have paid back your initial investment with electricity savings. Our example goes to year 25, which is when most solar panel warranties end, and in Wyoming, you'll end up with just over $15,000 in total profits by that date. That's pretty good!
The orange bars, on the other hand, show what happens if you take a Home-Equity Line of Credit (HELOC) to pay for the system. You don't put any money down, but you do get the 30% Federal solar tax credit, meaning you actually come out ahead in year 1. Money in your pocket now! The bars dip below the $0 line after 5 years, because your loan payments (over a 15-year term) will exceed your energy savings each year. By kind of a lot. Once you pay off the loan in 2030, the savings start stacking up. You'll actually end up with some nice profits—you'll come out $4,874 ahead at the end of our 25-year estimate.
Finally, the blue bars represent a similar HELOC option, but for a smaller, 2-kW solar system. This size system is great if you only have a little equity, and it still lets you make a little (very little) money over the long term, while reducing the amount of CO2 pollution you're responsible for. The loan size is smaller, and so are the first-year windfall and final profits, but if you love the idea of solar and haven't got piles of cash or equity, this is a great way to go.
Read on to find out more about each option!
Option 1: Paying cash for solar
Paying up front used to be the only way to get panels on your roof, and it's still the option that allows you the most control. An outright purchase returns the most money over time, because you own the system from day one and reap all the benefits—the Federal solar tax credit of 30% of system costs and some decent energy bill savings.
In our example, you put down $20,000, but by the end of year 1, that tax credit and the energy savings will erase a bunch of it. Over 25 years, your system will have produced over $15,000 in income.
Here’s an example of how the numbers work for a purchase of a 5-kW rooftop solar system in Wyoming:
- Installing a typical 5-kW solar system should start at about $20,000.
- The Feds offer a tax credit of 30% of out-of-pocket costs, so you'll get $6,000 back next April. Note: you can take the credit over two years if you don't owe $6,000 in Federal taxes this year.
- Then there's your first-year energy savings. That's another $749 and it brings the cost after 1 year to just $13,251.
- With all the energy bill savings rolling in, your system will pay itself back after 15 years. Once that happens, you’ll be seeing over $1,200 per year in savings until the end of your system’s life.
- When all is said and done, our 25-year estimate shows a total net profit of $15,166 with an internal rate of return of 5.6%. That's not quite the return of a stock market index fund over 25 years, but it's a solid investment if you're looking to save money and the planet at the same time.
- On top of those returns, your home's value just increased by $14,976, too (your expected electricity savings over 20 years)!
- And speaking of doing good for the environment... your system will create some green for the earth by not using electricity from fossil-fuels. In fact, the energy you’re not using has the carbon equivalent of planting 113 trees a year, every year your solar power system is humming.
Keep in mind, the numbers above are based on an average home in Wyoming. If you're ready for a custom quote for a solar panel system, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.
Option 2: Using a loan to pay for solar
This is where we tell you that taking a loan for solar panels is a no-brainer, because it means investing in an income-generating asset. And even though Wyoming doesn't have amazing rebates or tax breaks for solar, it's still true! That's because the state gets enough sun to make solar worthwhile, generating a good deal of income for you after you pay your loan off.
Here's how a solar loan works in Wyoming:
As you can see from the chart above, you'll start out with a big windfall, because with a loan, you're not putting any money down, and you get the 30% federal solar tax credit just like if you paid $20,000 up front for your system. You'll come out ahead over $4,850 after the first year! In the 14 years that follow, your loan payments will cost a bit more than the money you'll be saving in electricity, but just think of it like a monthly deposit into a savings account.
The rest of our estimate might look like a see-saw, because you start out with a windfall, drop down into "sizeable investment" territory, and then slowly gain after the loan is paid off. After 15 years of payment, you will have invested about $8,000 of your own money. Once the loan's paid off, you get all the energy savings with no more payments, and the solar "savings account" will pay dividends. If our prediction of 3.5% annual increases in energy costs hold, you'll end up $6,697 to the good at the end of 25 years, which is not too bad for an investment where you put nothing down!
A solar purchase like this will make sense for you if the following is true about you and your current situation:
- You can get a home-equity line of credit (HELOC) for $20,000 with a fixed rate of 5% or lower and a 15-year repayment period (lower rates and shorter repayment increases your profit).
- You have an appetite for making some good money on a long-term investment, while also producing a ton of benefits for the environment.
Here’s how the numbers pencil out for a Wyoming solar purchase with a HELOC:
- Installing a typical 5-kW solar system should start at about $20,000. That's how big your loan will need to be to cover it.
- The electricity bill savings in the first year of operation will total $749, but your loan payments will be $1,898, for a difference of $1,149, or about $96 per month.
- But here comes the tax credit! Because you've technically "paid" for the system with your loan, you'll get the Federal tax credit of 30% of system costs, or $6,000! Even after you make those loan payments, you'll end up with an extra $4,851 at the end of the first year.
- When your loan’s paid off in year 15, you’ll see over $1,250 per year in savings until the end of your system’s life.
- For our 25-year estimate, you'll see some nice returns, to the tune of $6,697 after all the payments. That's some sweet cash!
- Finally, the environmental benefits cannot be overstated. Operating your system will take as much carbon out of the air as planting 113 trees every year!
Keep in mind, the numbers above are based on an average home in Wyoming. If you're ready for a custom quote for a solar loan, our network of experts are on call to assist you. Simply sign up for personalized assistance on our special solar deals page.
Option 3: Buying the electricity, not the panels with a Power Purchase Agreement (PPA)
Wyoming does not offer solar Power Purchase Agreements or leases. Perhaps it would be a good idea to contact a solar advocacy organization and ask them to fight for solar in your state!
Wyoming Solar Policy Information
Ever wonder why solar seems to be everywhere in some states, but not in others? We did too.
State legislatures and public utilities commissions can enact rules to make solar power accessible for everyone. Favorable rules explain why some of the cloudiest states—New York, New Jersey, and Connecticut, are doing so well with solar, and yet some of those with the most natural solar resources—like Alabama, Mississippi, and Georgia—are doing so poorly.
Below is important information about the public policy, rules, and economic reasons that affect your ability to go solar here in Wyoming:
Wyoming's Renewable Portfolio Standard
A Renewables Portfolio Standard (RPS) requires utilities in the state to eventually source at least a certain percentage of their electricity from clean, renewable sources like solar panels. As we alluded to just a paragraph ago, Wyoming has not yet passed an RPS. Even more unfortunately, the pattern we’ve seen elsewhere is repeated: no RPS means no state and utility backed incentives for solar power here.
A Wyoming RPS would be critical to foster strong renewable energy policy in the state. Utility companies aren't really all that gung-ho about you producing your own power. After all, it costs them money when you use less of their electricity. They also don’t naturally want to give you big payments for energy you're feeding back into the grid. The main reason the utilities are aiding people's transition to lower electric bills and offering incentives to put solar on roofs is because some states force them via compliance fees.
Wyoming's Solar carve-out and SRECs
Unfortunately, no RPS means no solar carve out. If an RPS contains specific carve-outs for clean and efficient technologies like solar panels, you see even stronger incentives for residential solar power.
Wyoming Electricity Prices
Wyoming homeowners pay an average of 11 cents per kilowatt-hour (kWh) of electricity. That’s on the lower end of the spectrum and comfortably below the national average of 13 cents/kWh. We know you like paying less now, but the long term costs of cheap electricity are through the roof. All that cheap electricity is produced by burning fossil fuels -- tons and tons of earth-killing fossil fuels. When the astronomical environmental costs start to mount, monthly electricity bills are inevitably going to rise as well. When that happens you’re going to feel pretty darn smart for making the early switch to producing your own clean, efficient solar power.
Wyoming Net Metering
Statewide with caveats
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus.
Wyoming requires investor-owned utilities and electric cooperatives to offer net metering. All monthly surplus energy production is applied to your next bill. Whether you get the full retail rate or the utility’s “avoided cost” (essentially the wholesale) rate varies by company. If you run a surplus for the entire year, the utility will purchase your remaining surplus annually at the avoided-cost rate.
That’s a really solid net metering program. Overall we gave Wyoming a “B” in this category only because of the 25kW system size limit. That limit should be raised to allow larger commercial and industrial customers to meet all of their on site generation needs. The limit shouldn’t cause any problems for residential systems, however, as most come in around 5kW.
Wyoming Interconnection Rules
While Wyoming’s net metering law includes basic interconnection requirements, it does not establish any actual interconnection rules beyond those basic safety and equipment compliance requirements. Rocky Mountain Power (PacifiCorp) has established its own interconnection standards that, according to the Wyoming Public Services Commission, serves as the model for the the interconnection agreements of every other Wyoming electric provider. The details of this agreement can be found in Rocky Mountain Power’s interconnection application.
Wyoming Solar Incentives
Next to high electricity prices and net metering, solar incentives have traditionally been the most important factor for whether home solar power makes financial sense in a state. In the past, some states with otherwise lousy policy had tremendous incentives that drove down the up-front cost of going solar so much that homeowners could save oodles of money even without net metering or a good RPS.
These days, the big incentive most people can get is the Federal Solar Tax Credit that earns you 26% of your total system costs back after just 1 year. State incentives play less of a role than in the past, but some really good ones are still out there, ready to help homeowners go solar and save money before you know it.
Let's see how Wyoming measures up:
The availability of state solar incentives for residential solar systems was sourced from the Database of State Incentives for Renewables and Efficiency, utility company websites, and the state public utility commission.
Wyoming Solar Power Rebates
Wyoming currently lacks any sort of solar rebate programs. If the RPS set mandatory levels of renewable energy production, we can guarantee the utility companies would offer incentives to help you make the switch to solar. How do we know? It’s worked everywhere that a real RPS has been implemented. Get on it, Wyoming!
Wyoming Solar Tax Credits
No State Income Tax
Since Wyoming doesn’t have any income tax, there aren’t any solar tax credits to redeem!
Luckily, you will still benefit from the Federal Solar Tax Credit. There's no cap on the federal tax credit and fortunately for Wyoming, having no state rebate to deduct means a larger tax credit coming your way.
Property Tax Exemption
Tax exemptions are a simple, straightforward, and effective way to promote solar power. A property tax exemption would exempt you from paying taxes on the more than $15,000 in property value that installing a solar power system will add to your home -- all without ever actually removing a dime from the state’s bank account! That sounds like a win-win to us. Unfortunately, state lawmakers have yet to see the light (no pun intended), leaving Wyoming with no property tax exemption.
Sales Tax Exemption
Likewise, a sales tax exemption would save you between 4.5% and 8.5% on your initial investment, depending on where in the state you live. This would cost the state nothing, but again -- no such luck. Wyoming still lacks a sales tax exemption on renewable projects of any kind. Legislators are missing an easy one here; we’ve seen tax exemptions help support solar power conversion elsewhere, even without large rebates or performance payments in place.
Low-income Solar Programs
$500 to $2,000 per kW
Grade: FLearn more about low-income solar programs available in the U.S.
The consensus on Wyoming solar power rebates and incentives
Lawmakers in the Cowboy State have really dropped the ball on this one; the natural potential for solar power is actually quite high here, and virtually every Wyoming resident could save money while producing clean energy if the right incentives were in place. Unfortunately, we lack any of those incentives or the RPS to spur them. Until that situation changes, the start-up costs and payback time frame on a solar power system continues to lag way behind here.
Again, if you are confused about how these numbers work and would like some personalized assistance or a quote of your own, simply connect with our network of solar experts. They’ll help sort out all the pricing, get you access to special deals, and they’re super friendly to boot!