The Utah Solar Panel Incentives

Are you considering installing solar panels on your home? Many homeowners are unsure how to budget the move to green energy in Utah. Thankfully, there are plenty of solar panel incentives to ease the process and make the investment more affordable. 

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Federal Solar Tax Credit

One of the best-known incentives in Utah is the Investment Tax Credit or ITC. The ITC offers a 26% tax credit for installing solar panels on residential properties with no cap on the dollar amount. 

How to qualify

Eligibility factors require your solar system installation to be “placed in service”. Homeowners must have completed the installation on the roof to be eligible to be the full tax credit. The amount of credit is tied to your tax liability; hence qualifying doesn’t equal refundable credit. 

How long is it valid?

The tax credit for solar panels is gradually decreasing. The current 26% is valid until 2022. After which, the percent shrinks to 22% for systems installed in 2023.    

Utah Solar Tax Credit

The Utah Solar Tax Credit is a local inventive, officially described as the Renewable Energy Systems Tax Credit. It’s important to note that this initiative is also phasing down in 2024. 

How to apply

You can apply to this incentive for the installation of solar panels utilizing solar photovoltaic technology against a $15 application fee. If you opt to sign a PPA or a lease, you are not the solar system owner and can’t apply for the tax credit. 

What incentives to expect

The Renewable Energy System Tax Credit covers up to 25% of the installation and purchase costs for your solar PV panels. In 2021, the amount is capped at $1,600 and gradually phases out by 2024. 

A note combining tax credits

You can apply for the federal solar tax credit and the Utah Renewable Energy System Tax credit to combine the incentives. 

Utah solar easements

The Utah’s Solar Easements Law encourages communities to maximize their solar systems. Why the incentive isn’t monetary, it can be highly beneficial for homeowners. 

What do the solar easement and access laws say?

The Solar Easements and Access Laws allow a party to voluntarily enter a written easement contract that becomes enforceable by law. The easement describes compensations in the event of interferences. 

You can also use it to prevent obstacles from shading your solar system or declarations and developers from prohibiting the installation of solar panels on your roof. 

Net metering opportunities

Net metering overview the possibility of exchanging electricity with the grid. 

What it means

Essentially, if you produce more solar electricity, you can send it back to the grid against credits on your electric bills. In the event where you can’t produce enough energy, you can use these credits to make up the difference. 

Rocky Mountain Power’s net metering

Rocky Mountain Power’s net metering program enables the monitoring of the difference between the energy you generate and the one you buy for customers in Utah and neighboring states. It’s the largest utility in Utah, covering more than 80% of the electricity needs in the state. 

In conclusion, we hope this brief overview of the existing solar panels’ incentives can help you finance and manage the installation. A word of warning: Both tax credits are expected to decrease and phase out, so you should invest soon to benefit. You could also talk to a Solar company in Utah for more information.