Avista Solar Overview
Avista Utilities (formerly Washington Water Power) is an investor-owned utility serving eastern Washington, northern Idaho, and parts of Oregon. The company has significant hydroelectric generation, which keeps rates low—around $0.10/kWh—but this also means longer solar payback periods compared to high-rate areas.
Service area: Eastern WA, Northern ID, parts of OR
Customers: ~400,000 electric
Average rate: ~$0.10/kWh
Net metering: Available in WA and ID
Solar rating: ★★☆ (Low rates = longer payback) (Source: EIA Electric Power Monthly)
The Pacific Northwest's hydroelectric-based grid means very low rates compared to the national average. While this is great for your current electric bill, it does mean solar takes longer to pay off. That said, net metering is available, and for those motivated by energy independence or environmental concerns, solar can still be worthwhile.
Service Area
Avista Territory by State
| State | Service Area | Major Cities | Solar Hours/Day |
|---|---|---|---|
| Washington | Eastern WA | Spokane, Pullman | 4.0-4.5 |
| Idaho | Northern ID | Coeur d'Alene, Moscow | 4.0-4.5 |
| Oregon | Small area | Limited service | 4.0-4.5 |
Climate Considerations
- Four seasons: Good summer production, lower in winter
- Snow: Panels shed snow well; some winter losses
- Sunny summers: Long daylight hours boost production
- Overall: Moderate solar resource (4.0-4.5 peak sun hours)
Net Metering Policy
Avista Net Metering Programs
Avista offers net metering in both Washington and Idaho, though specifics vary by state:
| Feature | Washington | Idaho |
|---|---|---|
| Net metering available | Yes | Yes |
| System size limit | 100 kW | 25 kW residential |
| Credit rate | Retail rate | Retail rate |
| Credit rollover | Monthly, annual true-up | Monthly, annual true-up |
| Excess credit value | Varies | Varies |
How Avista Net Metering Works
- Solar generates: Panels produce electricity
- Home uses first: Self-consumption is immediate
- Excess exports: Extra power goes to grid
- Credits earned: At retail rate (~$0.10/kWh)
- Credits roll over: Month to month
- Annual true-up: Excess credits handled per policy
Avista Electric Rates
Current Rate Structure
| Component | Rate | Notes |
|---|---|---|
| Basic charge | ~$8-10/month | Fixed monthly fee |
| Energy charge (first tier) | ~$0.08-0.09/kWh | First block of usage |
| Energy charge (second tier) | ~$0.10-0.11/kWh | Higher usage |
| Average total | ~$0.10/kWh | Among lowest in nation |
Why Avista Rates Are Low
- Hydroelectric power: Low-cost renewable generation
- Pacific Northwest grid: Region benefits from Columbia River hydro
- Lower demand: Less extreme cooling needs than Southwest
- Regulated utility: Rate increases subject to approval
Solar Economics
Typical System Economics
| Factor | Avista Territory | National Average |
|---|---|---|
| Electric rate | ~$0.10/kWh | ~$0.16/kWh |
| Sun hours/day | 4.0-4.5 | 4.5 |
| System cost (6kW) | $15,000-18,000 | $17,000-20,000 |
| Annual production | 7,500-8,500 kWh | 8,000-9,000 kWh |
| Annual savings | $750-850 | $1,200-1,500 |
| Payback (purchase) | 15-18 years | 10-14 years |
When Solar Makes Sense with Avista
- Energy independence: Value not being grid-dependent
- Environmental motivation: Reduce carbon footprint
- Long-term view: 25+ year system life exceeds payback
- Rising rate protection: Lock in energy cost now
- Home value: Solar adds to property value
- EV owners: Higher usage improves economics
2026 Federal Tax Credit
PPA/Lease: The Section 48E credit (30%) remains available through December 31, 2027. The solar company claims the credit and passes savings to you through lower payments. (Source: IRS guidelines and DSIRE Database)
Impact on Avista Customers
The loss of the federal credit for purchased systems significantly impacts already challenging economics in Avista territory:
| Scenario | Before (with 30% credit) | Now (no credit) |
|---|---|---|
| 6kW system cost | $17,000 | $17,000 |
| Federal credit | -$5,100 | $0 |
| Net cost | $11,900 | $17,000 |
| Annual savings | $800 | $800 |
| Payback | ~15 years | ~21 years |
State Incentives
Washington State
| Incentive | Details | Notes |
|---|---|---|
| Sales tax exemption | 100% exempt | No sales tax on solar equipment |
| Property tax exemption | Not currently | Solar may increase assessed value |
| State tax credit | None | No state income tax |
| Net metering | Available | State mandate |
Idaho
| Incentive | Details | Notes |
|---|---|---|
| State tax deduction | 40% first year, 20% x 3 years | Deduction, not credit—check current rules |
| Property tax exemption | Not currently | May increase assessed value |
| Sales tax | 6% applies | No solar exemption |
| Net metering | Available | Through Avista program |
Interconnection Process
Avista Interconnection Timeline
| Step | Timeline | Notes |
|---|---|---|
| Application | Day 1 | Installer submits to Avista |
| Utility review | 15-30 days | Technical assessment |
| Approval | 5-10 days | Authorization to install |
| Installation | 1-2 days | Physical install |
| Local inspection | 5-15 days | City/county inspection |
| Final Avista inspection | 10-20 days | Meter setup |
| PTO | 5-10 days | Permission to Operate |
Total timeline: 45-75 days typical for Avista territory.
Tips for Avista Customers
Do This:
- Calculate realistic payback: Use $0.10/kWh, not higher rates
- Consider PPA/Lease: Better economics with remaining federal credit
- Size appropriately: Match your actual usage
- Value non-financial benefits: Independence, environment
- Get multiple quotes: Fewer installers = compare carefully
- Think long-term: 25-year life exceeds payback period
Watch Out For:
- Inflated savings projections: Verify rate used in calculations
- Comparing to high-rate areas: Your economics are different
- Oversizing: Excess production has diminishing returns
- Expecting quick payback: 15-18 years is realistic
- Assuming federal credit: 25D expired for purchases
Frequently Asked Questions
Does Avista have net metering?
Yes, Avista offers net metering in both Washington and Idaho with retail-rate credits. Excess generation rolls over monthly with an annual true-up.
Is solar worth it with Avista?
It depends on your goals. With $0.10/kWh rates, payback is 15-18 years for purchased systems—longer than the national average. However, systems last 25+ years, and PPA/Lease options can provide savings from day one. Solar makes more sense if you value energy independence or environmental benefits beyond just financial return.
What states does Avista serve?
Avista serves eastern Washington (including Spokane), northern Idaho (including Coeur d'Alene), and a small area of Oregon. Your specific location determines which state's policies apply.
Why is Avista electricity so cheap?
The Pacific Northwest benefits from abundant hydroelectric power from the Columbia River system. This clean, low-cost generation keeps rates low—great for consumers, but it does extend solar payback periods.
Can I get the federal tax credit with Avista?
For purchased systems, the 30% federal credit (Section 25D) expired December 31, 2025. For PPA/Lease agreements, the Section 48E credit (30%) remains through 2027—the solar company claims it and passes savings to you.
How does snow affect solar panels in Avista territory?
Panels are installed at an angle that helps snow slide off. Light snow may melt quickly, while heavy snow can temporarily reduce production. Annual production estimates account for seasonal variation. Many Avista customers find winter production is lower but summer's long days compensate.
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