Solar Power Installation in Utah

Why Invest in Solar In Utah?

When you find the right company for solar power installation near you, investing in solar is worth it because of the financial savings and environmental impact that solar energy can provide.

Utah is a particularly lucrative location for solar energy because of the climate and the tax incentives for solar power. In fact, Utah is ranked in the top one-fifth of U.S. states when it comes to solar power generation. Plus, about 91% of the rooftops in Utah are compatible with solar panels! Once you find the right partner for solar power installation near you, you can get your sustainable energy dreams off the ground!

The U.S. average for days of sunshine per year is 205. Utah far exceeds that average with 238 sunny days per year, making it the fifth sunniest state in the U.S.! This means there is plenty of available energy throughout the year, especially with the use of solar battery storage like SunPower. In fact, Utah currently produces almost 1,760 MW of electricity via solar power, which is about 6.35% of the state’s electricity. This leaves substantial room for growth, and in the next five years, another 1,560 MW is expected to be added.

Because financial concerns have been a barrier for solar power installation near you over the years, the state of Utah offers financial incentives to help offset the up-front costs of installing solar. First, a 26% federal tax credit is available in every state. In Utah, there’s also a renewable energy system tax credit, which allows you to claim up to $1,600 toward 25 percent of solar equipment costs.

Programs like net metering will also help reduce your electricity bill when your solar panels aren’t producing power (like on cloudy days or at night). Even after you complete your solar power installation near you, you’re still connected to the power grid, and you can earn credits when you sell excess energy back to the grid. That way, when you use energy at night, you can spend credits instead of racking up a large energy bill.

Plus, with new technology like SunPower by Custom Energy, you can store excess solar power for later use and keep reliable backup power separate from the power grid.

Solar Panel Tax Credit

Homeowners can lower the cost of solar energy by utilizing state and federal tax incentives. After installing solar, qualifying taxpayers can use the solar tax credit. The solar tax credit allows qualifying taxpayers to deduct the dollar-for-dollar credit they received from their taxes. For example, claiming a $1,000 federal tax credit will lower your federal income taxes by $1,000. In the Beehive State, qualifying residents can receive both residential and commercial tax benefit incentives.

Homeowners can participate in the Utah solar tax credit, also known as the Renewable Energy Systems Tax Credit. This credit covers up to 25% or $800 (whichever amount is less) of the purchase and installation costs for residential solar projects. To apply for Utah solar tax credit, simply register and apply through the Utah Office of Energy Development’s website.

It is important to note that the residential solar tax credit amount is projected to lower within the next few years. While the 25% cap or $800 amount will be available for homeowners who install solar until 12/31/22, this number will drop to a 25% cap or $400 until 12/31/23. By 2024, the Utah tax credit amount will expire entirely, making now the most lucrative time to go solar in Utah.

Another beneficial solar tax incentive to take advantage of is the Investment Tax Credit. The ITC is a federal solar tax incentive. It offers homeowners a 26% solar tax credit for solar systems on residential and commercial solar installation in 2022 and a 22% credit for systems installed in 2023. There is no maximum amount that can be claimed, but it is important to note that the ITC functions as a non–refundable tax credit. This means that the amount of refundable credit you will be eligible for only applies to your tax liability.

For Utah businesses looking to go solar, there is the Investment Renewable Energy Systems Tax Credit. This credit can be claimed on the company’s federal income taxes the same year the system was installed. The tax credit covers up to 10% of the eligible system cost or $50,000, whichever amount is less.