Utah’s Key Solar Incentives: A Breakdown

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Utah is becoming a leading state for solar energy, thanks to a variety of incentives that make solar installations more affordable and appealing. From state tax credits and net metering policies to utility rebates, Utah offers several financial benefits for homeowners and businesses looking to invest in solar power. In this article, we’ll break down the key solar incentives available in Utah, providing a clear understanding of how they work and how you can take advantage of them to reduce your energy costs and support a sustainable future.

The Residential Clean Energy Credit

The Residential Clean Energy Credit, previously known as the Federal Investment Tax Credit (ITC), can reduce the cost of your solar panel system by 30%. This incentive covers the entire system, including equipment, labor, permitting, and sales tax.

To claim this incentive, you need to purchase your system with cash or a solar loan, as leasing does not qualify for the ITC. You must have a sufficient federal tax liability to use the credit, though any unused portion can be rolled over year-to-year until the ITC expires at the end of 2034. Direct payment of the ITC is only available to tax-exempt entities, such as nonprofit organizations.

Murray City Power – Net Metering Pilot Program

Murray City Power introduces net metering to customers through a pilot initiative, enabling those generating electricity from solar photovoltaic (PV), wind, or hydroelectric systems with a maximum capacity of 10 kilowatts (kW) to participate. The utility will install and maintain a revenue meter capable of tracking electricity flow in both directions at the customer’s site. This program is presently accessible to customers as a trial. The Murray Municipal Council reserves the right to modify or terminate the program at any time, without obligation to existing participants.

Solar for All

• The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers. The program aims to support the development of low-income community solar projects, reduce carbon emissions, lower energy costs, and promote quality jobs, community wealth-building, energy resilience, and equitable workforce development. 
• In collaboration with a diverse coalition of regional stakeholders across sectors, Utah is set to launch a transformative initiative known as the Solar for All of Utah (S4AU). This comprehensive program aims to harness Utah’s abundant solar resources to bolster the deployment of residential solar and deliver tangible benefits to disadvantaged and low-income households across the state’s varied regions. S4AU will facilitate rooftop solar adoption through inclusive financing options, robust community engagement efforts, workforce development initiatives, and innovative partnerships with proven track records in advancing renewable energy adoption throughout Utah’s communities. The S4AU initiative is intentionally crafted to modernize energy access for Utah’s low-income market as part of a broader statewide effort toward justice and equity in the transition to cleaner energy sources. Notably, Utah currently has populations without electricity or reliant on life-sustaining medical devices powered by electricity. In its initial stages, S4AU prioritizes Utahns who are vulnerable to electricity deprivation or unplanned power outages.
• Grid Alternatives’ Western Indigenous Network Solar For All (WIN-SFA) program draws on its extensive experience in working with Tribal communities, aiming to maximize benefits for Tribal households and advance energy sovereignty while addressing environmental degradation and climate change. Through the provision of financial assistance in the form of grants and incentives, coupled with technical support from organizations with expertise in equitable deployment of renewable energy in Tribal settings, WIN-SFA seeks to bring solar power to thousands of Native American households nationwide.

Disclaimer

The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.