As one of the sunniest states in the U.S., Utah has seen some of the most impressive growth in solar installations in the country. When life gives you a beautiful desert and breathtaking mountains, you make solar energy. It’s easy with Utah's solar incentives and rewable energy programs described below. Contact us and your personal Energy Agent will guide you through the process.
If you install a solar panel system on your home in Utah, the state government will give you a credit on your next year’s income taxes t o reduce your solar costs. You can claim 25 percent of your total equipment and installation costs, up to $1,600. That’s in addition to the 30 percent federal tax credit for solar – not a bad deal for a system that can save you thousands each year on your energy costs!
Note that this tax credit will be reduced in value by $400 each year and expires in 2022, so now is the time to get started on your solar project.
Net metering requires your utility to monitor how much energy your solar power system produces, how much energy you actually consume, and to make sure you get credit for the surplus. Utah law requires Rocky Mountain Power (RMP), the only investor-owned utility in the state, and almost all electric co-ops to offer net metering for solar panels. Under this policy, net metering is available for residential systems up to 25 kilowatts (kW) in capacity and non-residential systems up to two megawatts (MW) in capacity.
Net metering programs vary depending on your utility. Rocky Mountain Power customers are credited for surplus on your next month’s bill at the full retail rate. Customers of electric cooperatives receive credits at the wholesale rate.
A couple of municipal utilities, which fall outside of the above legislation’s jurisdiction, have voluntarily enacted net metering policies as well:
The federal solar income tax credit is a, 30% of the total solar energy installation cost, tax credit. This federal solar income tax credit is available to both families and businesses. There are two important key understandings related to the federal solar income tax credit. The first is that money owed or paid to the IRS, can now be applied toward paying for your family or busineess, 25 -30 year, electric utility costs. The second is that a family or business must have the federal income tax liability, in which to apply the federal income tax credit. Tax liability can be an issue for those that are retired or some business situations. Even if you don’t have enough tax liability to claim the entire credit in one year, you can “roll over” the remaining credits into future years for as long as the tax credit is in effect. However, remember that if you sign a lease or PPA with a solar installer, you are not the owner of the system, and thus you cannot receive the tax credit. 2016 – 2019: The tax credit remains at 30 percent of the total solar installation cost of the solar energy system. 2020: The federal income tax credit will be reduced to 26 percent of the total solar installation cost of the solar energy system. 2021: The federal income tax credit will be reduced to 22 percent of the total solar installation cost of the solar energy system. 2022+: The federal income tax credit will be reduced to 0 percent of the total solar installation cost of the solar energy system for residential installations. The federal income tax credit will be reduced to 10 percent of the total solar installation cost of the solar energy system for any commercial installation. Owners of a new commercial solar energy systems can deduct 10 percent.