Solar Panel Laws in Wyoming

Wyoming is a very sunny state. It is located on the nation’s North-Western side and sits firmly in the United States solar belt.

Besides being sunny, the state is also blessed with some of the best inland wind resources in the nation. Wyoming has decent geothermal resources, too. This makes Wyoming a hub of untapped renewable energy sources.

Other than the renewable energy sources, Wyoming also has large coal and natural gas deposits. These fossil fuels are cheaper to source, and it has greatly hindered the development of solar and other renewable ideas.

Wyoming is also the top producer of coal in the nation; Wyoming’s coal has low sulfur and is found near the surface. These deposits make setting up coal power plants that emit carbon and other air pollutants attractive.

Due to large coal deposits, it is no surprise that the state is mainly powered by coal power plants, leaving wind and solar unutilized. Wyoming also doesn’t seem too keen to utilize that potential, as is no RPS in place to encourage utilities to invest in solar and wind power generation.

Key Takeaways

• Wyoming is rich in renewable energy resources, including abundant sunlight and wind, but its reliance on coal and natural gas has hindered the development of solar energy.
• Despite its low electricity prices, Wyoming offers some incentives for solar adoption, including a net metering system that benefits residential PV systems and a federal solar tax credit, which can cut homeowners’ taxes by 30% of the total solar system cost.
• However, Wyoming does not provide tax exemptions for solar equipment purchases, and installing solar panels may increase property taxes due to the increased home value.

Introduction

Wyoming receives an average of five peak sun hours over the year. During the summer, days can average up to seven peak hours of sunlight. This is a lot of sunlight and is a natural incentive to go solar.

Though few, the state has some incentives to encourage homeowners to invest in solar installation in Wyoming.

A 5 kW system is enough for an average household to meet the house’s energy needs. In Wyoming, a 5 kW system costs around $20,000. The payback period for such an investment, including all tax cuts and incentives, is 15 years.

The payback period can be calculated by dividing the solar PV’s initial cost and the savings you receive after you stop paying for electricity.

The period is relatively long because electricity prices in Wyoming are low. Utilities charge an average of $0.11 per kilowatt-hour, 2 cents below the national average. These low prices are attributed to the many coal plants and large coal reserves.

Even though Wyoming has mainly concentrated on using fossil fuels for the state’s energy needs, they still recognize some homeowners would like to utilize the state’s solar potential. Here are the solar panel laws in Wyoming.

Net Metering In Wyoming

Even though Wyoming is reluctant to make better policies to suit solar integration, it has made sure to make it up by creating a robust net metering policy. The state has a solid net metering system that benefits residential PV systems.

Net metering is a system that allows homeowners to connect to the grid after they have upgraded to solar. When your solar panel produces more power than your household needs, the excess power is absorbed into the grid for use elsewhere. When you send electricity to the grid, the utility providers give you credits.

At night or during the summer, when your solar panel isn’t producing enough power to support your power needs, you can draw power from the grid to meet the deficit.

You can then use the credits to offset your bill. You can receive your credits at the full retail rate or the utility’s ‘avoided cost’ (the wholesale price). The rate varies by company.

If you don’t use up your credits for a month, they are rolled over to subsequent months. This means you can accumulate enough credits in the summer to even out your bill during winter. After a year, the utility providers are supposed to give you financial compensation for surplus credits.

Federal Solar Tax Credit

Otherwise known as the Investment Tax Credit (ITC), this is an incentive from the federal government available nationwide. This comes in the form of a tax cut. The incentive allows homeowners who have bought solar systems to cut 30% of their taxes’ total cost.

The tax cut is only available to homeowners who buy a whole system at once through cash or a solar loan. The cost includes solar panels, installation, permits, and other components.

If your solar PV System sets you back $20,000, your tax cut will be $5,200. You can deduct the whole amount from the taxes due for one year.

If you don’t pay enough taxes to allow you to reclaim the whole amount once, you can split it over subsequent years. This is the most significant saving you will receive in one go if you decide to go solar.

If you are short on funds, you can take a solar loan, redeem your tax credit, and use the money to pay off your solar PV system’s first installments.

Wyoming does not collect any income tax from its residents. This means the state cannot offer tax credits like the federal government.

Wyoming Tax Exemptions

Wyoming does not exempt solar from any taxes. This means all the components will be subjected to sales tax if you purchase a solar PV system. This makes the price of solar a little bit more expensive than in other states.

Property taxes are paid according to the value of your house. When you install a solar PV system in your home, it increases the value.

The state doesn’t exempt solar panels from being exempted from property taxes. You will have to pay for the increased value.

Case Study: Residential Solar Installation in Wyoming

Background

Casper, Wyoming, enjoys ample sunlight, making it a prime location for solar energy utilization. Despite the state’s heavy reliance on coal, individual homeowners in Casper are increasingly exploring solar power as a viable option for reducing energy costs and minimizing environmental impact.

Project Overview

A homeowner in Casper approached us at Solar Panels Network USA with the goal of reducing their electricity bills and leveraging the available federal tax incentives. We proposed a 5 kW solar PV system that would cater to the household’s energy needs and provide long-term financial savings.

Implementation

Initial Assessment: Our process began with a detailed energy audit, analyzing the household’s historical data on electricity usage. This assessment helped us determine the optimal system size, ensuring it matched the home’s energy consumption patterns.

Design and Planning: Using advanced tools, we designed a system that maximized the rooftop space. The design included high-efficiency solar panels and inverters, optimized for Casper’s climate conditions.

Installation: The installation process was meticulously planned. The solar panels were installed on the south-facing roof to maximize sunlight exposure. We ensured that all components were of the highest quality and installed according to industry best practices.

Connection and Testing: After installation, we connected the system to the grid under Wyoming’s net metering policy. This allowed the homeowner to earn credits for any excess energy produced, which could be used to offset future electricity bills. The system was thoroughly tested to ensure optimal performance and safety.

Results

The solar system began generating electricity immediately, leading to significant savings from the onset. The homeowner reported a 35% reduction in their monthly electricity bills. The federal solar investment tax credit further enhanced the project’s financial viability by reducing the initial installation costs by 30%.

Despite Wyoming’s lack of state-level incentives, the net metering policy and federal tax credits made the investment worthwhile. The payback period for the system was estimated to be around 10 years, after which the savings would significantly exceed the initial investment.

Additionally, the project contributed to reducing the homeowner’s carbon footprint, aligning with broader environmental goals. By adopting solar energy, the homeowner not only achieved financial savings but also supported a shift towards more sustainable energy practices.

Summary

This residential solar installation in Casper, Wyoming, highlights the potential for solar energy in the state. Even without state-specific incentives, the combination of federal tax credits and net metering benefits makes solar energy a compelling option. At Solar Panels Network USA, we continue to provide customized solar solutions that help homeowners harness the power of the sun, achieve financial savings, and contribute to environmental sustainability.

Summary

This residential solar installation in Casper illustrates the potential for solar energy in Wyoming, despite the state’s reliance on coal. The financial benefits provided by net metering and federal tax credits make solar energy a viable and attractive option for homeowners. At Solar Panels Network USA, we are committed to delivering customized solar solutions that help residents achieve their energy goals and contribute to a sustainable future.

Expert Insights From Our Solar Panel Installers About Solar Panel Laws in Wyoming

Despite Wyoming’s abundant sunlight, the state’s heavy reliance on coal and lack of strong solar incentives pose significant challenges for homeowners looking to invest in solar energy.

Lead Solar Installer

The net metering system in Wyoming is a key benefit for solar adopters. It allows homeowners to earn credits for excess energy produced, which can help offset their utility bills, making solar a more viable option.

Senior Solar Technician

Federal tax credits provide a substantial financial incentive for Wyoming residents to install solar panels. With the 30% tax credit, the initial costs are significantly reduced, encouraging more homeowners to consider solar energy.

Solar Energy Consultant

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Map image by Wikimedia Commons User: TUBS / CC-BY-SA-3.0