Utah solar incentives are great, and if you're thinking about taking the plunge to go solar, it's worth looking into whether or not you qualify for any of these incentives. These benefits are designed to incentivize people to make the switch to solar energy. They only apply in certain circumstances, so there's no need to worry if your circumstances don't fit - but if they do, by installing a solar panel system, you could save yourself hundreds of dollars every year.
Utah is a great state to go solar , and there are plenty of ways you can make the switch. The state has several reasons for this, including its great weather, use of fossil fuels, and its location in the western United States means there's ample sunlight throughout most of the year.
The state also has some interesting incentives for people to go solar. You can save thousands of dollars per year by going solar with one incentive or another, so if you're on the fence, it may be worth seeing what incentives your state offers.
Here is a list of the solar incentives in Utah
Utah tax credits for residential solar
The state has two tax credits applicable to individuals installing solar panels. The first is a 30% federal tax credit, worth up to $2,000 for each kilowatt of solar energy you can produce. This can be arranged through the state's utility.
The second is a direct subsidy of $1 per watt on your average monthly electric bill from your utility. This is also included in your bill, but will not be paid directly to you. This means it's up to you to manage the amount of energy that this source is connected to.
This can help you to save up to $1,000 per year. The state has a combined total of $3.6 million available for this incentive, meaning you can save around $300,000 on your investment if you install solar panels.
Utah net metering
Net metering is a way of compensating people for using more or less energy than they need. This happens through an electricity meter that calculates the total energy used and the total energy produced by your solar panels and offsets it accordingly. This means that you can also use that same amount of energy for free.
Solar tax credits are passed onto the utility company, so this means it benefits both your pocketbook and the environment. For Utah, they have a 30% federal tax credit available for people installing solar panels on their property. This is separate from the net metering mentioned above, but does give you a further incentive to go solar.
Utah property tax exemption for rooftop solar
The state offers a property tax exemption on your rooftop solar panels, along with two others. One is for homeowners with property taxes greater than $150,000 annually - which is certainly not the majority in any state - and who have installed solar panels on their roof.
The second is for people with low income household who replace their primary residence’s heating and cooling systems with solar. They can also claim a property tax exemption on the installation.
Utah sales tax exemptions on solar equipment and energy
Sales tax exemption in Utah is available to any person or business that uses solar energy to generate power in their home. The item in question must be purchased for use by the homeowner in order to take advantage of this benefit, and this benefit does not extend to businesses and non-residential users.
This exemption can help you save anywhere from 1% to 7% on the cost of the item. This may not sound like a lot at first, but if you’re spending a significant amount of money, this could add up to a significant cost saving.
Solar Rebates
Many solar companies will also provide you with a rebate when you install your system. This is because they aim to get you to save money in the long run, and in exchange for that saving, will give you a rebate.
When the rebates are added together, they can help to pay for up to 30% of your system's upfront costs. Most people won’t make enough money in their lifetime to recover all of their solar panels' costs in this way, but it's still worth looking into if you want to make the switch.
The way a rebate works is with the state offering cash back to solar energy providers. It can be in the form of alternative energy credits, which is 3% of each kilowatt-hour of produced solar energy. The state provides this for free, rather than through tax rebates.
How to apply for solar incentives in Utah?
There is no application process for all of these programs in order to get the money. These incentives are paid directly to people in financial need, which means they can be spent in any way they choose.
The tax credits require you to install solar panels on your property, but if you're planning on installing them regardless, then it doesn't matter if you qualify or not.
Also, in order to qualify for the incentives, you must make enough money to pay at least 40% of the cost of your installation yourself, including any tax breaks.
To get all of these incentives in place, you must have at least one kilowatt worth of installed solar panels, which is enough to power an average house.
The state also has a number of other programs in place to go solar - there are no additional programs required in order to get these solar incentives.
Why you should considered to go solar?
In addition to saving money, going solar can have a great impact on the environment as well. In Utah, this is especially important as they have a goal of cutting carbon emissions by 80% by 2050.
You can save hundreds of dollars in energy costs by going solar. In the long term, this will save you a lot of money, considering how much you can save per year.
In Utah, the average household spends around $1,100 on electricity alone - so if you can cut that down to even half of that, you'll have a significant amount of extra money in your pocket each month.
Solar power is also a great way to protect yourself from rising utility bills.
how do I get started?
First of all, contact your local energy service provider. They are required by law to cover all of the costs involved in switching to solar energy.
This includes the cost of installing the equipment, inspection fees, maintenance fees, and any other charges. You can also talk to them about how much it will cost for you to pay off over time, including the federal tax credit and any other rebates you qualify for.
The average homeowner who is thinking about going solar can expect to spend around $18,000 on their installation.
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