✅ Federal Incentives
All federal benefits apply to entities in Utah.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.
⚡ Renewable Energy Systems Tax Credit (RESTC)
Utah previously offered a state tax credit worth up to 25% of the total cost of a solar photovoltaic (PV) system, including installation. The maximum credit was $1,600. However, this program expired at the end of 2023 and is no longer available for systems installed in 2024 and beyond.
⚡ Property Tax Exemption
Utah provides a property tax exemption for solar energy systems. This means that installing a solar system will not increase your property's assessed value for tax purposes.
✅ Utility Incentives
⚡ Net Billing
Utah does not have a statewide net metering policy. However, some utilities, such as Rocky Mountain Power, offer net billing programs. Under net billing, excess electricity generated by your solar system is credited to your utility account at a lower rate than the retail rate. These credits can offset future electricity bills, and any remaining credits at the end of the year may expire.
⚡ Wattsmart Battery Program
Rocky Mountain Power offers a rebate of $400 per kilowatt (kW) of battery capacity installed alongside a solar system, up to a maximum of $4,000. Additionally, participants can receive annual bill credits of $15 per kW of battery capacity starting from the second year. To qualify, systems must be installed by an approved contractor and meet program requirements.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
Utah offers a combination of federal incentives and state-level programs to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits. The federal 30% solar tax credit and property tax exemption provide financial support and compensation for solar energy production. Additionally, nonprofits can benefit from direct payments equivalent to the federal ITC. These incentives make Utah an attractive state for solar energy adoption.