Solar Power Rebates, Tax Credits and Solar Panel Incentives in Utah; 2012 Update
Utah's income tax credit for renewable energy systems includes provisions for both residential and commercial applications.
Residential Solar Power Systems State Tax Credit
The individual income tax credit for residential systems is 25% of the reasonable installed system costs up to a maximum credit of $2,000 per residential unit. The residential credit is nonrefundable, but unused credit may be carried over up to four years. A non-business entity that leases a residential system is eligible for the credit and may use the credit for no more than seven years from the initiation of the lease. Eligible residential systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and biomass.
The tax credit for commercial systems is worth 10% of the reasonable installed costs up to $50,000. A business entity that leases a commercial system is eligible for the credit and may use the credit for no more than seven years from the initiation of the lease. Eligible commercial systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and geothermal electricity; and biomass systems. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible.
Net metering is available in UTAH with a 1:1 credit being given for excess kwh's that are exported back to the grid. Here is what the return on a solar system installed in Utah might look like.
|Size of System (kw)||
|Space required (square feet)||
|Price of system per watt||
|Price of power (marginal cost high usage kwh's) $ per kwh||
|Average daily kwh produced per 1 kw of solar||
|Total average daily production||
|Total Price (before incentives)||
|Federal Tax Credit||
|State Tax Credit||
|Actual out of pocket cost after incentives claimed||
|Annual Power production||
|Total Annual Energy savings based on net metering at 1:1||
|Total Annual Return||
|Annual Return on Investment||