Should You Go Solar In Wyoming?

Wyoming has been the top coal-producing state for decades and is the second-largest net energy supplier. Coal has been a cornerstone of Wyoming's economy for a long time, complicating the switch to renewable energy. Nearly one-fifth of the state's electricity generation came from wind power in 2021, but what about solar power? And even if solar doesn't make up much of Wyoming's power supply, does it make sense to power your home with it? 

Solar in Wyoming has a ways to go. Wyoming ranks 43rd (out of 51) in the US for solar energy production, according to data from the Solar Energy Industries Association. Solar only accounted for about 2% of Wyoming's renewable energy generation in 2021. Wyoming also has the third-cheapest electricity rates in the country (10.28 cents per kilowatt-hour) and an average monthly electric bill of $89.13, according to CNET's sister publication SaveOnEnergy.

"In Wyoming, it's important to think through your individual situation because we do have fairly low electric rates, some of the lowest in the country," Shannon Anderson, a staff attorney and organizer with the Powder River Basin Resource Council, a clean energy nonprofit, told CNET. "You should right-size the system for your needs specifically."

With lower electricity rates and the lack of state government support for solar, is it worthwhile to go solar in Wyoming? Here's what you need to know if you're considering solar in Wyoming. 

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Wyoming's coal industry pushes solar aside

As a state known for its beautiful rural landscapes and its famous national park, one would assume Wyoming to be a "pro solar" state. However, that doesn't seem to be the case. Solar in Wyoming is complicated. The main reason is Wyoming's long history of coal production. 

Wyoming has been the top coal-producing state in the US since 1986, according to the Energy Information Administration. Coal production in Wyoming really took off in the 1990s and has since become a major industry, with coal production peaking in 2008, said Anderson. Fifteen years ago, Wyoming produced around 450 million tons of coal a year. Since then, Wyoming's coal production has continued to drop dramatically, producing only around 200 million tons per year in recent years. 

A large portion of Wyoming coal is sent to energize power plants across the country.

"Wyoming coal is almost exclusively used for power generation because the quality of the coal isn't good enough to make steel and other uses like Appalachian coal is," said Anderson. "And so we send our coal on trains to power plants across the country."

However, with other states adopting renewable portfolio standards (laws stating that power companies must supply a certain amount of their electricity from renewable sources) and the retirement of coal-fired power plants, the demand for coal has dropped drastically, Anderson said. Solar energy in particular is seen as a threat to Wyoming's coal-based energy economy, she said.

"The demand for Wyoming coal has gone down significantly," said Anderson. "Policymakers here in the state understand these larger trends and see renewable energy as a threat to our existing coal industry, and have tried to protect coal in different ways because of the jobs and economic development associated with the coal industry, but also the revenue."

Despite the politics around renewable energy in Wyoming, you still have the option to install solar on your property.

Wyoming solar panel costs

The answer to "how much does solar cost?" will always be: It depends. Solar is a site-dependent purchase, meaning it depends on your individual property and energy needs. The main factors affecting the cost of solar panels are the system size, type of panels and your household energy usage. And if you choose to install a solar battery, it'll get even more expensive. 

Because solar prices are so subjective, finding reliable state-level data is a bit difficult. However, prices for solar have fallen 53% over the past decade, according to SEIA. Here's a look at the average nationwide cost of solar, according to 2022 data from the energy consulting firm Wood Mackenzie.  

How to pay for solar panels in Wyoming

With such a serious investment, it's good to know all your options. Be sure to weigh your choices and pick a method that works best for your financial situation. Here are a few ways you can pay for your solar panels.

Cash: If you've got the funds, paying cash upfront is the best way to go. There won't be any high interest rates or financing fees to worry about, and you'll always be eligible for tax incentives and rebates. Or if you think you might go solar in the future, consider saving up in a high-yield savings account. This can help you save more money over time.

Solar loan: If you need to finance your solar panels, most solar companies will offer you a solar loan. This loan will either be through the solar company themselves or a third-party lender. Keep in mind that a solar loan might come with some high interest rates and associated fees. 

Other types of loans: A solar loan isn't your only solar financing option. You could take out a personal loan with your bank or consider opening a home equity line of credit. However, a HELOC does come with some risks involved. If you aren't able to pay what you owe, you could lose your home. With any loan, whether from a lender or a solar company, be sure to shop around and compare rates and terms.

Lease or power purchase agreement: Don't want to own your solar panels? You don't have to. You can either enter a lease or a power purchase agreement. If you decide to lease, you'll pay for the use of a system owned by a solar company. If you enter a power purchase agreement, you'll pay for generated electricity from a company-owned solar system at a fixed rate. The fixed rate is usually lower than the retail electricity rate from your local utility company.

Wyoming solar panel incentives and rebates

Many states offer incentive programs to help make solar more accessible and further the push toward renewable energy. Wyoming isn't one of those states. Anderson said Wyoming's lack of state solar incentives correlates to its lack of renewable portfolio standards, which require power companies to supply a specific amount of their electricity from renewable sources. 

"What it really has to do with is the state's reliance on traditional energy like fossil fuels, coal, oil and gas. We have significant budget reliance on those types of energy," Anderson said. "And with that, there's a lot of support from the state legislature for fossil fuels, and they see solar as a threat to Wyoming's 'bread and butter.' It's always been a challenge to deal with."

The closest thing Wyoming has to a state-level solar incentive is net metering, the process of selling excess electricity from your solar panels to the power grid. Anderson said Wyoming's net metering is a retail rate bill credit, month-to-month rollover until the end of the year. Then, there's a payout of any excess credits at an avoided cost rate filed by the utility companies. 

"The important thing to know in Wyoming is that we still do have one-for-one net metering, and that means you're able to obtain a credit on your bill for the excess generation that you're able to export to the grid, which is great," said Anderson. "There's been several attempts to roll that back at the state legislature over the years, but they've all been defeated."

Wyoming residents can also take advantage of federal solar incentive programs. Through the residential clean energy credit, you'll receive a federal tax credit of 30% off the total cost of your solar system. This includes labor. There's also the Rural Energy for America Program, which provides grant funding and financing options toward renewable energy systems for commercial farmers and small rural business owners. 

"If you're an agricultural organization, like a farmer or rancher, you're able to get these incentives," Anderson said. "And it's a fairly sizable contribution to the overall system cost, which is really helpful for if you're looking to do a commercial install in Wyoming."

Here's a look at the solar incentives available in Wyoming. 

Wyoming solar panel companies

Wyoming's solar industry is quite small, with only 13 solar companies in the state, according to SEIA. There are about 10 solar installers in the state, and the majority of them are smaller local businesses. Solar is an expensive investment, so try to get as many quotes as you can from different installers to get the best price possible. 

Not every system is right for every house, Anderson said. Your installer should be able to walk you through all the specifics and answer all your questions. Your installer should examine your roof space, direction and if there are any trees blocking the best spots during a home inspection, Anderson said. 

You'll also want to take customer reviews, warranties and labor or maintenance fees into consideration when selecting your solar installer.

Creative Energies

Creative Energies is a residential and commercial solar installer with locations in Wyoming, Utah and Idaho. The company has more than 20 years of experience in the business and installs grid-tied, off-grid and hybrid solar systems. If you choose Creative Energies as your installer, you can either pay cash or finance your panels. 

Premier Electric

Installing solar since 2006, Premier Electric is a Wyoming-based solar installer and electrical contractor that installs residential, commercial and ranch solar systems. Premier Electric offers on-grid, off-grid and hybrid solar solutions.  

Price Solar & Electric 

Price Solar & Electric is a solar installer and electrical contractor operating in Wyoming and parts of Montana. The company specializes in residential, commercial and RV solar installations. Solar panels with Price Solar & Electric come with a 25-year warranty. Your system can be on-grid, off-grid or hybrid.

SunPower Solar

SunPower Solar operates in all 50 states and offers a 25-year warranty on your entire solar system. The company is known for having some of the most efficient solar panels available, with an efficiency rating of 22.8%. You can pay cash, finance, lease or enter a power purchase agreement for your solar panels. Just be aware that SunPower Solar does not offer price matching. 

Installation factors to keep in mind

Here are a few installation factors to keep in mind as you decide if solar is right for you:

Condition of your roof: Not every roof is suitable for solar panels. Things like roof damage, age, pitch, angle and tree cover can impact the efficiency of your solar panels. Solar panels perform best on south-facing roofs angled between 15 and 40 degrees, according to the US Department of Energy. A reputable solar installer will perform a property inspection before installing solar panels.   

Insurance coverage: Check with your homeowners insurance agency to see if they cover rooftop solar panels. If they do, consider adding them to your policy.

Location: The more peak sunlight hours your area has, the better your solar panels will perform. Wyoming is one of the sunniest states in the US, with an average of 3.9 to 4.9 hours of peak sunlight per day.

Homeowners association regulations: Since solar panels change the look of your home, your HOA might have certain rules around solar panels. Check with your HOA before installing solar. 

Financing options: If you can't pay cash upfront, there are other options available to pay for your solar panels. Solar loans, personal loans, solar leases and power purchase agreements are a few options to consider. Since solar is such a big investment, it's important to do your research and find the best payment option that works for your situation. 

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