Solar Panel Credits Utah

The utah solar tax credit officially known as the renewable energy systems tax credit covers up to 25 of the purchase and installation costs for residential solar pv projects capped at 1 600 of cost whichever is less.

Solar panel credits utah. If you install a solar panel system on your home in utah the state government will give you a credit on your next year s income taxes to reduce your solar costs. Utah code 59 10 1014 this credit is for reasonable costs including installation of a residential energy system that supplies energy to a utah residential unit. Dolla dolla bill y all. The biggest advantages in utah for installing solar panels are the state tax credit and the 26 federal tax credit.

Current utah solar incentives include generous rebates for solar electric and solar hot water systems. First enacted in 2005 as part of the energy policy act of 2005 the solar tax credit began as a tax credit of 30 percent of the cost to install a solar panel system with a maximum credit of 2 000. You can claim 25 percent of your total equipment and installation costs up to 1 600. Renewable energy systems tax credit.

Homeowners solar companies and industry advocates alike were given a big christmas gift in 2015 when congress approved the 2016 federal spending bill and extended the solar panel tax credit. When combined with federal solar rebates your solar panel installation will be approximately 50 less because of the incentives. This means that rooftop solar panels in utah could produce more power than solar systems in other parts of the country. The residential renewable energy tax credit as the irs calls it can be an attractive way to save on the significant cost of installing solar panels or roofing an average sized residential solar.

For utah solar shoppers state and local tax credits mean there s never been a better time to start exploring solar offerings. As of september 2020 the average solar panel cost in utah is 2 99 w given a solar panel system size of 5 kilowatts kw an average solar installation in utah ranges in cost from 12 708 to 17 192 with the average gross price for solar in utah coming in at 14 950 after accounting for the 26 federal investment tax credit itc and other state and local solar incentives the net price you. Additional residential energy systems or parts may be claimed in following years as long as the total amount claimed does not exceed certain limits. Whether or not you re getting any utility rebates everyone in utah is eligible to take a personal tax credit when installing solar panels.

Utah s solar tax credit makes going solar easy. The tax credit for a residential system is 25 of the purchase and installation costs up to a maximum of 2 000. In 2008 the itc was reauthorized and the cap was lifted. Utah also receives some of the highest levels of solar irradiation in the country.