Go Solar in Utah!
In addition to strong state policy and an array of rebates and incentives to use solar energy, Utah also allows for net metering. Net metering (or net energy metering, NEM) allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly important with wind and solar, which are not available on demand. Monthly net metering allows consumers to use solar power generated during the day at night, or wind from a windy day later in the month or to sell excess energy back to the utility company. Annual net metering rolls over a net kilowatt credit to the following month which allows solar power that was generated in June to be used in December or wind power from March to be utilized in August.
Utah has some of the most progressive net metering laws in the nation, requiring nearly all its electric utilities to offer the service. Utah utilities must monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus. This is good policy for homeowners like you!
Utah Solar Incentives
Net Energy Metering (NEM)
Net Energy Metering or Net Metering allows consumers who generate some or all of their own electricity to access it anytime, not just when that power is being generated. Solar is not an “on demand” resource – you want electricity 24/7, not just when the sun is shining. That’s where net metering policies come in. They regulate how your solar installation connects with your local utility company to access electricity. through their delivery grid. The policies vary by state but most provide solar customers a way to store and access energy based on the kilowatts they generate. Costs vary depending on how much power the consumer generates and uses.
Utah State Tax Credit
The tax credit for a residential system is 25% of the purchase and installation costs up to a maximum of $2,000
Federal Investment Tax Credit
All 50 states are eligible for a 30% Federal Investment Tax Credit (ITC) to reduce the cost of the system. This is calculated as 30% of the value of your system after the upfront rebate. If you choose to purchase or finance your system this tax credit goes to you directly through your federal tax return, and if you choose to lease your system will be assigned to your leasing partner which ultimately lowers your cost. Your solar specialist will calculate this for you and can consult with your accountant to fill out Form 5695 to claim your credit.
Utah Electricity Prices
Utah is tied for the nation’s 30th highest electricity prices
Cost per kwh (cents)
Why are electricity prices important?
The power your solar panels produce reduces your electric bill. The higher the price of power, the more you save by generating your own.
And if electricity prices are low in your state, it might be because your utility company gets most of its energy from cheap coal. That makes solar less economical, but doesn’t take into account the long-term environmental costs of cheap fossil fuels.
Utah Solar Power Tax Credits
Utah has the nation’s 6th best solar tax credits
Savings with Solar (up to $2,500 total)
How do state solar tax credits work?
State tax credits aren’t technically free money, but they are “credits” and not “deductions”. If you are taxed enough to take advantage of them, they are a 1-to-1 dollar amount off your taxes that erases a huge portion of the cost of installing solar panels.
(Keep in mind, we are not tax professionals and give no tax advice so please consult a professional before acting on anything we say.)