2023 Utah Solar Incentives

Inflation Reduction Act Tax Credit & USDA Grants (Updated August 2022)

Solar Investment Tax Credit Details for Residential Projects

• The investment tax credit for going solar has been boosted to 30% for the next ten years. Homeowners and business owners alike in Utah can claim 30% of a solar system's cost on their taxes. A tax credit is a dollar-for-dollar reduction of the income tax you owe. If you can’t use the full value in one year, you can roll over the remainder to the next year. You should check with a tax adviser to make sure you can claim the entire value.
• Keep in mind that if you've already had a solar system installed on your Utah property in 2022, you can retroactively claim 30%. The IRA overrides the previous ITC, valued at 26%.
• You must own the system. Systems that are leased are not eligible to be claimed. Anything related to the final cost of the installation is acceptable: labor costs for preparation, assembly, and final installation, permitting fees, inspection costs and developer fees. Additionally, a backup battery is eligible to be included in total cost.
• The Solar ITC extension is included in the stimulus package legislation H.R. 133.
• Read more about the IRA bill here

Solar Backup Batteries Qualify for Federal Tax Credit

• If you add a battery for backup power battery storage like the Tesla Powerwall or SolarEdge Energy Bank to your solar system, they also qualify for the tax credit at 30%.

Commercial Solar Federal Tax Credit

• The commercial solar federal tax credit at 30% applies to all kinds of businesses, including farms, ranches, agricultural businesses, breweries, car dealerships, coffee shops, restaurants, outdoor industry retail shops, bike shops, and more.
• Additionally, the Inflation Reduction Act allows non-profit organizations to claim 30% and receive the rebate as "Direct Pay".

USDA Grants for Solar

• The United States Department of Agriculture Rural Energy for America Program (REAP) grants provide guaranteed loan financing and grant funding to agricultural producers and rural small business owners to purchase or install solar energy systems. Our team can help you go through the application for solar grants.

Utah Solar Incentives

State Residential Solar Incentives

Until December 31, 2022, Utah residents that install solar can claim 25% of the system cost, but it will be capped at $800 dollars, phasing down to a $400 dollar cap in 2023. This is based on address, so if you already have a solar system and want to expand it, it would not be eligible for the state tax credit. However, if you have a second residence you wish to install solar, you can claim it. Don't miss out on this great opportunity and take advantage Solar ITC now!

• 25% capped at $800 until 12/31/22
• 25% capped at $400 until 12/31/23

Also Check out the Database of State Incentives for Renewables & Efficiency

The Solar ITC extension is included in the stimulus package legislation H.R. 133.

State Commercial Solar Incentives

For installations of commercial buildings, the tax credit is refundable and is calculated as 10 percent of the eligible system cost or $50,000, whichever is less. The tax credit amount is calculated the same for all eligible renewable energy technologies.”

• Utah tax credit expires in 2024. Although we have high hopes that it will get renewed soon.

Local Utah Community Solar Programs and Solar Rebates

At this time there isn't a local community solar program in Utah, but more towns are going #SolarForGood with clean energy commitments and Creative Energies has worked on several community-sponsored solar programs in the past. We closely follow and advocate for renewable energy policies and programs, so we'll keep you updated.

You should check with a tax adviser to make sure you can claim the entire value of solar tax credit(s).

You could save thousands on your solar power system, but these incentives won't last forever!

Questions?

Contact Creative Energies at 801.487.6489 or info@CEsolar.com to get a solar quote.