Utah Solar Incentives: 2025 Overview

A taxpayer may claim a credit of 30% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

Service under this schedule is intended to promote the installation of solar photovoltaic (PV) electric generation equipment by customers designed to offset electricity usage on the system site. Residential participants must be current Utah customers of Rocky Mountain Power, with accounts in good standing. The incentive amount is limited to 4 kW (AC) and will only be paid directly to the utility customer.

The Utah Office of Energy Development administers the tax credit and has responsibility for revising the tax credit rules and certifying systems as eligible for the credit. Legislation enacted in 2007 extended these tax credits through at least 2012. On or before this time, and every five years thereafter, the Utah Tax Review Commission must review the tax credit and make recommendations as to whether the tax credit should be continued, modified, or repealed. The revised tax credit is applicable to systems placed in service on or after January 1, 2007. Taxpayers wishing to use this tax credit must first apply through the Utah State Energy Program before claiming the tax credit against their Utah state taxes.

Service under this schedule is intended to promote the installation of solar photovoltaic (PV) electric generation equipment by customers designed to offset electricity usage on the system site. Residential participants must be current Utah customers of Rocky Mountain Power, with accounts in good standing. The incentive amount is limited to 4 kW (AC) and will only be paid directly to the utility customer.

Service under this schedule is intended to promote the installation of solar photovoltaic (PV) electric generation equipment by customers designed to offset electricity usage on the system site. Residential participants must be current Utah customers of Rocky Mountain Power, with accounts in good standing. The incentive amount is limited to 4 kW (AC) and will only be paid directly to the utility customer.

Service under this schedule is intended to promote the installation of solar photovoltaic (PV) electric generation equipment by customers designed to offset electricity usage on the system site. Residential participants must be current Utah customers of Rocky Mountain Power, with accounts in good standing. The incentive amount is limited to 4 kW (AC) and will only be paid directly to the utility customer.

Service under this schedule is intended to promote the installation of solar photovoltaic (PV) electric generation equipment by customers designed to offset electricity usage on the system site. Residential participants must be current Utah customers of Rocky Mountain Power, with accounts in good standing. The incentive amount is limited to 4 kW (AC) and will only be paid directly to the utility customer.

Service under this schedule is intended to promote the installation of solar photovoltaic (PV) electric generation equipment by customers designed to offset electricity usage on the system site. Residential participants must be current Utah customers of Rocky Mountain Power, with accounts in good standing. The incentive amount is limited to 4 kW (AC) and will only be paid directly to the utility customer.

The individual income tax credit for residential systems is 25% of the reasonable installed system costs up to a maximum credit of $2,000 per residential unit. The residential credit is nonrefundable, but unused credit may be carried forward for up to four years. Eligible residential systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and biomass. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible.

The individual income tax credit for residential systems is 25% of the reasonable installed system costs up to a maximum credit of $2,000 per residential unit. The residential credit is nonrefundable, but unused credit may be carried forward for up to four years. Eligible residential systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and biomass. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible.

The individual income tax credit for residential systems is 25% of the reasonable installed system costs up to a maximum credit of $2,000 per residential unit. The residential credit is nonrefundable, but unused credit may be carried forward for up to four years. Eligible residential systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and biomass. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible.

The individual income tax credit for residential systems is 25% of the reasonable installed system costs up to a maximum credit of $2,000 per residential unit. The residential credit is nonrefundable, but unused credit may be carried forward for up to four years. Eligible residential systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and biomass. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible.

A taxpayer may claim a credit of 26% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

A taxpayer may claim a credit of 22% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

A taxpayer may claim a credit of 30% for the installation which was between 2022-2032 (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit), with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the placed in service date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.