Decided to go solar in Utah? With over 5 peak sun hours, Utah is in the Top 10 solar states with a stable solar harvest, helping you to save on your electricity bills. And to save even more, read our article on solar incentives in Utah.
Key takeaways
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
In Utah, all investor-owned utilities and cooperatives serving more than 1,000 customers are required by law to offer net metering. Net metering allows residential solar owners to put the excess electricity onto the utility grid instead of storing it with batteries.
The state of Utah uses an approach called net billing – its main difference lies in different rates that are applied to the energy you buy and the energy you sell. Usually, the utility pays a bit less for your energy than they charge for theirs. When you sell your solar power to the grid, you receive credits that can be used to offset your next bill. The value of the credits is determined by the utility company. All unused credits expire once a year.
Rocky Mountain Power is Utah’s largest utility, providing services to 80% of the customers. The company uses slightly different summer and winter rates. Rocky Mountain Power also charges a non-refundable application fee of $60.
Renewable Energy Credits are certificates granted to any person or entity upon generation of each MWh of clean electricity. Unlike with Net Metering, you don’t need to sell any electricity to get credits. The value of RECs is always changing, which makes them similar to stock market assets. Based on the available data, selling RECs could mean anywhere from $300 to $1,000 annually for a 10kW solar system. To participate, first you may want to contact the Utah Public Service Commission for relevant details. After that, you can create a REC account with the Western Renewable Energy Generation Information System (WREGIS) to begin storing and selling your credits.
Update: Unfortunately, RECs program in Utah was continued.
A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles on neighboring plots. It is voluntary, but can not be canceled unless a specific clause is included in the document. Once signed, it is tied to the land, not the owner. To have legal power, it must be duly recorded and indexed.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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