With so much sunshine and vast, open spaces, Utah ranks 9th in solar power compared to other states. The state receives a lot of sunlight throughout the year and has a great potential not only to become one of the leaders in solar adoption, but also a leader in solar energy generation in the nation. With almost perfect environmental conditions for solar and strong support from local utilities and state, it is definitely worth it to install a PV system in Utah.
As of today, the average price of solar panels in Utah is $3.22 per watt. The installation of a 5kW solar power system will cost about $15,000. This price does not reflect the Federal Investment Tax Credit or Utah State solar credit. The total price will fall by a few thousands of dollars after claiming these credits.
The Federal Investment Tax Credit – federal government program that compensates you for solar energy investment. In the year following the installation of your solar panels, you will deduct 30% of the cost of solar panels, solar equipment, and labor from your federal taxes.
Utah Solar Tax Credit - one of the best in the nation, Utah Solar Tax credit is available for everyone who is installing a solar power system. A residential system's tax credit is 25 % of the cost of buying and installing the system, up to a maximum of $2,000.
Net Metering Program – all utility companies in Utah are required under the law to provide their customers with Net Metering. This program monitors the amount of electricity the solar power system generates, how much of it the consumer uses, and allows for any excess energy to be credited back to the customer’s next month's electric bill.
When looking at the benefits and disadvantages of solar energy in Utah, it is clear that the benefits greatly outweigh the disadvantages. With such low solar rates and plentiful Utah sunshine, there has not been a better time to adopt solar, start producing your own electricity, and help to keep Utah green and beautiful.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.