While all Utah residents can claim the federal tax credit, the financial incentives available from the state government and utility companies are limited. While the state offers a tax credit and solar battery incentive, there are no Utah solar rebates, property tax exemptions or sales tax exemptions.
Renewable Energy Systems Tax Credit (RESTC)
Incentive value: 25% of solar system costs or $400, whichever is less
Frequency: One-time incentive when installing a photovoltaic system
The Renewable Energy Systems Tax Credit (RESTC) is the only solar power incentive the Utah state government offers. It is also available for wind turbines, geothermal systems, hydroelectric generators, biomass systems and some renewable thermal technologies. You can claim the RESTC for 25% of your solar project costs under the following limitations:
- You can claim 25% or up to $400 for solar PV systems, whichever is less.
- You can claim 25% or up to $2,000 for other renewable energy systems, whichever is less.
If you considered a 6 kW solar panel system priced at $16,680, an uncapped 25% tax credit would equal $4,170. But you would only get $400 in this case, which only covers 2.4% of your solar investment.
Initially, the RESTC had a higher limit per solar installation. You could claim up to $1,600 between 2017 and 2020, up to $1,200 in 2021 and up to $800 in 2022. The benefit will no longer be available for home solar systems after Dec. 31, 2023.
You can find tax credit applications and a video outlining the process on the Utah Office of Energy Development’s website. There is an application fee of $15, which must be paid by credit card. If your application is approved, you will receive a TC-40E Form to formally deduct the income tax credit.
The Utah solar tax credit is more favorable if you’re considering solar panels for a commercial building. While the rate is 10% instead of 25%, the maximum amount you can receive is $50,000 per solar project. So a business owner who installs a 300 kW solar array worth $500,000 would see the maximum tax credit of $50,000.
Rocky Mountain Power Wattsmart Battery Program
Incentive value: $400 per kilowatt of battery capacity upfront, then $15 per kilowatt per year
Frequency: Upfront and annual payouts
Rocky Mountain Power is the largest electric company in Utah, serving 75% of the state’s territory. Customers who install solar panels with an energy storage system can utilize the Wattsmart Battery Program, which offers the following benefits:
- An upfront rebate of $400 per kilowatt of battery capacity, covering up to 70% of equipment costs.
- An annual electric bill credit of $15 per kilowatt, starting from the second year.
So for example, a battery with a rated power output of 5 kW would qualify for $2,000 upfront and $75 per year.
To participate in this rebate program, you must install solar batteries approved by Rocky Mountain Power.
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