So, you typed in “Utah solar tax credit” because you’re looking for ways to cut down the cost of your solar investment. We hate to break it to you, but the state’s solar tax credit officially ended in 2023 – meaning, it can no longer be claimed for 2024 and onwards.
But here’s the good news: There are still big savings on the table!
You can still get thousands through the other solar programs available for Utah homeowners, such as the federal solar tax credit, net billing, and Wattsmart Battery Program. If that’s what you came for, jump straight to the “Other Solar Incentives for Utah Homeowners” section.
But if you want to know more about Utah’s solar tax credit and how much Utahn folks benefitted from it, keep reading…
Utah’s Renewable Energy Systems Tax Credit (RESTC)
Let’s start with what you probably meant when you searched for “Utah Solar Tax Credit.”
The Renewable Energy Systems Tax Credit (RESTC) was Utah’s way of rewarding homeowners for going solar. It applied to residential rooftop solar systems, giving homeowners a tax credit worth 25% of their system’s cost, up to a capped amount.
Here’s how the maximum credit changed over the years:
- 2023: 25% capped at $400
- 2022: 25% capped at $800
- 2021: 25% capped at $800
- 2018-2020: 25% capped at $1,600
- 2017: 25% capped at $2,000
As mentioned earlier, the RESTC expired in 2023. If you installed solar in 2024 or later, you can no longer apply for this state tax credit.
If you installed solar before the deadline but didn’t claim the credit, you might still be eligible. But take that with a grain of salt – tax rules can get tricky, and honestly, we’re not tax experts. We highly recommend speaking with a tax professional ASAP to help you sort things out.
Other Solar Incentives for Utah Homeowners
If you’ve missed out on the RESTC, don’t worry. Here are the top solar programs in Utah that you can take advantage of today.
Federal Solar Tax Credit
Utah’s solar tax credit may be history, but the Federal Solar Tax Credit is alive and still available nationwide, providing major financial benefits for homeowners in Utah and across the U.S.
Also known as the Investment Tax Credit (ITC), homeowners can claim a 30% tax credit for systems installed between 2022 and 2032. The credit then drops to 26% in 2033 and 22% in 2034, before expiring in 2035 unless Congress extends it.
Unlike the RESTC, there’s no cap on this one. If your solar system costs $20,000, you can claim $6,000 back on your federal taxes.
You’ll likely qualify for this solar incentive if you meet at least these basic conditions:
- You must own the solar system (leased systems do not qualify).
- The system must be installed at your primary or secondary residence in the U.S.
- You must have a tax liability.
To claim the federal solar tax credit, fill out IRS Form 5695. This will involve calculating your Residential Energy Credit, where you’ll enter your system cost and determine your credit amount. After which, you must submit it with your IRS Form 1040 when filing your taxes.
Utah Net Billing / Net Metering
If you’ve heard of net metering, you probably know the basic idea – you send extra solar power to the grid, and in return, you get solar credits.
You can then use these credits to draw grid power at no additional cost during nighttime or on cloudy days when your panels aren’t producing as much.
If you’re a customer of Rocky Mountain Power (RMP) – Utah’s largest utility – you’ll be under net billing instead of traditional net metering. Instead of a 1:1 trade, you receive a lower rate for excess energy sent to the grid.
Currently, Rocky Mountain Power credits exported solar energy at 5.63 cents per kWh in the summer, which is just a little over half of what homeowners pay for electricity (about 10 cents per kWh). Not exactly an even trade, but small savings are still savings – and that’s a win.
On the other hand, if you live in the City of St. George and Murray City, true net metering is still available. This means you get a full 1:1 credit for every kilowatt-hour you send back to the grid, which is a lot more favorable than the previous one.
Wattsmart Battery Program
If you’re adding battery storage to your solar setup, the Wattsmart Battery Program from Rocky Mountain Power is another way to cut costs via solar rebate.
This is how it works.
When you enroll, Rocky Mountain Power can access and draw power from your battery during peak demand times. In return, you get cash incentives and bill credits for participating:
- Upfront incentive: $400 per kW of battery capacity (A 5 kW battery system gets a $2,000 rebate)
- Annual Bill Credits: $15 per kW per year, starting from year two (a 5kW battery earns $75 per year in bill credits)
What’s the catch?
- You won’t have full control over when your battery discharges. Since RMP can pull energy from it when needed, you might not always have as much backup power as you expect.
- Compensation rates can change. The program could adjust its payouts in future years.
If you don’t mind these trade-offs, this could be a great way to cut down on your solar battery costs.
So, Should You Still Go Solar in Utah? Definitely!
Even without the Utah state tax credit, you still have strong incentives to make solar worthwhile:
- The Federal Solar Tax Credit lets you cut 30% off your total cost.
- Net billing/net metering credits reduce your electricity bills.
- The Wattsmart Battery Program provides upfront and ongoing savings on battery storage.
And here’s something to think about: electricity rates are rising every year. When you invest in solar, you’re locking in your own energy source at today’s cost – while everyone else keeps paying more.
If you’re ready to switch, now is a great time to take advantage of these programs before they change or expire.
Get Competitive Solar Quotes in Utah
Finding the right solar installer is just as important as choosing the right system. At Quote for Solar, we connect you with trusted installers in Utah so you can compare options quickly and get the best deal.
Simply request a quote, and we’ll send you three competitive estimates from pre-screened solar companies in your area.
If you found this article helpful, please share it with your friends and family, and don’t forget to subscribe to our blog for more informative content on solar energy and sustainability!
