Utah is a truly sunny place, making it a naturally strong place to install home solar panels.
Here are some of the running incentives in Utah for 2023:
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Utah
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
Solar tax credit
Everyone in Utah is eligible to take a personal tax credit when installing solar panels. The tax credit for a residential system is 25% of the purchase and installation costs up to a maximum of $1,600. Dolla dolla bill y’all.
And of course, Utahns also benefit from the Federal Solar Tax Credit. There's no cap on the federal tax credit and you'll deduct that after you subtract your rebate. For sample calculations, use our Utah solar calculator on this page.
Net energy metering in Utah
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
With net metering, you can sell the excess solar energy you produce with your solar panels back to the utility, a huge win for you as a solar homeowner. Unfortunately, Utah no longer requires its utility companies to offer net metering.
Instead, RMP now offers what they call "net billing," which they define using schedule 137. Under the net billing arrangement, solar owners can generate and use electricity from solar panels to reduce the amount of energy they buy from the utility. When the sun is shining bright and solar panels are generating more than a home can use, the excess energy is sent to the grid, and RMP pays a price of 5.969¢ per kWh (5.639¢ from October - May). Those payments are applied to the homeowner's account as a bill credit, and used to reduce their final monthly bill for energy they buy when the solar panels aren't producing.
Other net metering programs in Utah vary depending on specific utility or co-op rules.
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