Since graduating with a journalism degree in 2012, Emily has worked on staff and in freelance roles for a variety of publications, including Realtor.com, as well as local real estate companies. As a long-time member of the Forbes Home team, Emily has shared dozens of informative articles about topics ranging from pest control to solar incentives and much more.
Since graduating with a journalism degree in 2012, Emily has worked on staff and in freelance roles for a variety of publications, including Realtor.com, as well as local real estate companies. As a long-time member of the Forbes Home team, Emily has shared dozens of informative articles about topics ranging from pest control to solar incentives and much more.
Contributor Updated: May 24, 2024, 1:26amWe earn a commission from partner links on Forbes Home. Commissions do not affect our editors' opinions or evaluations.
WIth abundant sunny days, it’s no wonder that more than half a million homes in Utah are solar-powered. If you are interested in joining the movement, 2024 is a good time to install solar panels—especially because federal tax credits are at an all-time high and Utah’s best state-based incentive is set to expire at the end of the year.
While installing solar panels is a good long-term investment, the upfront expense is no small matter. To save as much as possible, learn about rebate and incentive programs ahead of time so that you can meet the eligibility criteria.
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In 2024, Utah’s solar industry remains robust, with significant contributions to the state’s energy grid despite limited state-specific incentives. The Renewable Energy Systems Tax Credit was phased out at the beginning of 2024, with the last available credits issued by December 31, 2023. At the state level, Utah does not mandate net metering , though Rocky Mountain Power offers a net metering program where unused solar credits expire annually.
Critics argue this policy undermines solar customers’ economic benefits by preventing them from fully utilizing their excess energy production. Instead of rolling over surplus credits, customers lose any unused credits each March, reducing overall savings from solar investments. This contrasts with more favorable programs in other states that allow credits to carry over indefinitely, maximizing financial returns for solar users. Additionally, unlike many other states that offer exemptions, Utah imposes sales and property taxes on solar panel installations.
Federal Solar Tax Credit Renewable Energy Systems Tax Credit Expired at the end of 2023 Net Metering Rocky Mountain Power Wattsmart Battery Program See More See LessLaunched in 2006, the Federal Solar Tax Credit remains the leading way for homeowners to recoup the initial investment in solar panels in most parts of the country. In fact, the savings are only getting better since the credit increased to 30% of the cost of installed solar panels.
Also known as the Investment Tax Credit or Residential Clean Energy Credit, the 30% federal credit is authorized through 2032 before it is scheduled to drop. There is no limit to the amount that can be claimed.
After installing solar panels that you own (not lease), you are eligible for a 30% tax credit during the following tax season. Both materials and labor count toward the total cost of the system. That means if it costs $20,000 to install and activate solar panels in 2024, you can decrease your tax bill by $6,000 next spring.
The state of Utah previously offered the Renewable Energy Systems Tax Credit (RESTC) to incentivize homeowners to install residential solar panels. However, this program has now been fully phased out. For those who installed their solar systems by December 31, 2023, the credit was capped at 25% of the system’s cost or $400 , whichever was less. This credit could then be applied during the following tax season.
While the RESTC program no longer provides benefits for installations completed in 2024 or beyond, it played a crucial role in promoting solar adoption in Utah during its active years.
Net metering is a beneficial policy that allows homeowners to offset their energy bills by generating their own electricity through solar panels. However, Utah does not mandate utility companies to offer net metering, and the policies can differ significantly among providers.
When your solar panels generate excess energy, net metering lets you send that surplus back to the utility grid, providing credits that reduce your future utility bills. This system helps maximize the value of your solar investment.
Rocky Mountain Power, the largest energy provider in Utah, supplies over 80% of the state’s energy and offers net metering for residential systems up to 25 kW. The credits for exported energy vary seasonally:
However, these credits are lower than the retail rate of electricity. Additionally, unused credits expire at the end of each March, a practice upheld by the Utah Supreme Court despite opposition from solar advocates who argue this diminishes the financial benefits of solar energy for customers.
If you install a qualifying battery along with your solar panels, you may be eligible for Rocky Mountain Power’s Wattsmart Battery program. To start, you need to work with an approved installation company and select from a list of eligible batteries.
Once you’ve gone through all of the steps and the battery is operational, you can get a rebate from Rocky Mountain Power for $400 per kW of battery capacity. Then, from the second year onward, you can get an additional $15 per kW. For example, if your solar battery has a 4 kW capacity, you will get an upfront rebate of $1,600 plus $60 each year.
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The average cost to install solar panels in Utah is $2.72 per watt before applying the Federal Solar Tax Credit and other available incentives.
