Typically service cost ranges from $11,262 to $15,238.
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Utah residents have some good reasons to switch to solar power. One is the below-average cost of installation. Another is the collection of solar incentives the Beehive State offers to help homeowners save money when buying a new solar power system.
We recently researched the best solar companies and looked at which solar incentives each state offers. Read on to learn about the solar programs available for Utah residents.
Overview of Utah Solar Incentives
Living in Utah allows you to access local, state, and federal solar incentives.
| Incentive | Where It Comes From | What You Get |
|---|---|---|
|
Renewable energy systems tax credit |
State government |
Credit toward your income taxes that doesn’t conflict with the federal tax credit |
|
Solar easements and rights |
State government |
Assurance your neighbors and developers can’t interfere with your panels’ sun exposure |
|
Net-metering |
Local utility companies |
Payment for selling your excess solar energy back to the grid |
|
Federal solar tax credit |
Federal government |
Ability to claim 30% of your system cost on your federal taxes |
Utah Solar Incentives, Tax Credits, and Rebates
Utah’s incentives greatly reduce solar energy system costs. Below are the state’s top programs.
Renewable Energy Systems Tax Credit
This state-sponsored solar tax credit enables you to receive a credit for next year’s income taxes. You can claim 25% of the total equipment and installation costs up to $800. Any credit that’s over your tax liability can be carried over for the next four years. This credit doesn’t conflict with the federal solar tax credit. Combined, these two incentives can lower your investment considerably.
Additional resources:
Solar Easements and Rights
While not a financial incentive, Utah’s solar easements law makes getting the most value out of your panels easier. A solar panel system needs unobstructed exposure to sunlight to produce energy. If your neighbor decides to install anything that interferes with your panels’ solar absorption, the easements law gives you the right to ask them to move it and offers a framework to help negotiate with them.
The state’s solar rights law also says your local zoning authority can prevent developers from prohibiting the installation of solar panels on your home. It limits the degree to which a homeowners association (HOA) can restrict rooftop solar installation as well.
Additional resources:
Net-Metering
Net-metering is a program many utility companies offer customers to help reduce their electric bills. Installing a solar energy system doesn’t mean disconnecting from the power grid entirely. Most solar buyers opt for an on-grid system so they have a backup power source. Connecting to the grid means you don’t have to worry about running out of electricity if there’s little sunlight that week.
Net-metering also allows you to send excess energy your system banks during sunny days back to the grid. In turn, your utility company provides you with credits to put toward your next utility bill. Rocky Mountain Power is the top utility provider in Utah with a net-metering program.
Additional resources:
Federal Tax Credit
The most lucrative incentive is the federal solar investment tax credit (ITC). Also referred to as the residential clean energy credit, this nationwide program allows you to claim a percentage of your system cost on your federal taxes. That percentage has changed over the years but is currently at 30% until 2033. Utah’s average system installation cost is around $13,250, so you can save up to $4,000 with the federal tax credit.
You can claim the solar tax credit when you file your yearly federal tax return. You can carry it over to the next tax year if you can’t use it all when you file. If you file your taxes yourself, you must fill out IRS Form 5695.
This credit is only for those who own their system through a full purchase or via a solar loan. Those with a solar lease or power purchase agreement (PPA) aren’t eligible.
Utah Solar Costs
According to EnergySage, the average cost of a residential solar panel system in Utah ranges from $11,262 to $15,238. That’s before taking advantage of any solar incentives, which could reduce the figure by thousands. Utah solar prices are well below the national average of $20,650. Depending on the size of your system and the credits you qualify for, you may be able to get a system for under $10,000.
Is Going Solar in Utah Worth the Investment?
Going solar is worth it in Utah. Utah ranks No. 12 in the country for solar investment, with over $4 billion spent on renewable energy solutions. Considering the average electricity rate in the state at $10.85 per kilowatt-hour (kWh), Utah homeowners stand to save roughly $10,200 over the lifetime of their panels. One way to gauge if solar panels would be a good investment is to look at your energy usage. You can find this on your monthly energy bill. If you consume more than 500 kWh per month, you’ll likely see a profitable return by installing solar.
Our Recommendation
Utah is a great state to transition to solar power, especially if you take advantage of solar incentives. If you’re ready to talk about your options with a solar company, we recommend SunPower or Blue Raven. These companies have positive customer reviews, high-efficiency panels, and many years of experience.
You can get a quick estimate from these providers’ websites or enter your ZIP code below.
Utah Solar Incentives FAQ
Can I get solar panels for free in Utah?
Homeowners can’t get residential solar panel systems for free, but there are Utah solar rebates and tax credits to help reduce the cost. The renewable energy systems tax credit and federal solar tax credit are two ways to save.
What is the tax credit for solar panels in Utah?
The renewable energy systems tax credit is a state-sponsored Utah solar tax credit that allows you to receive a credit toward the next year’s income taxes. This allows you to claim 25% of the total equipment and installation costs up to $800.
Where can I buy solar panels in Utah?
Utah has many solar panel companies to choose from, such as SunPower, ADT Solar, and Blue Raven Solar. See our list of the best Utah solar companies.
What are the benefits of solar panels?
Solar panels help reduce your dependency on the electrical power grid, lowering your utility bill and providing a power source when the grid goes down. They’re a sustainable source of clean energy that doesn’t involve carbon emissions, greenhouse gasses, fossil fuels, or high water usage.
How We Chose the Top Solar Companies
We researched and analyzed dozens of solar panels and solar installation companies. We then formulated a rating system based on each solar installer or manufacturer’s services and products. We weighed several significant factors, including the quality and type of solar panels offered, the customer support network, warranty lengths and limitations, and additional benefits such as mobile apps for monitoring and customer service.
Speaking directly to representatives, we determined how each solar company personalizes its solar panel installation for each home. We also analyzed each company’s warranty options to ensure their product and performance guarantees match or exceed industry standards.
We evaluated each provider based on their rating and history with the Better Business Bureau (BBB) to determine reputation. In addition, we analyzed the 100 most recent Google Reviews for each provider across various locations and branches.
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