State Banner

Discover the Power of Solar Energy in Utah!

Welcome to Utah, a state known for its stunning natural landscapes, from the majestic Rocky Mountains to the red rock deserts, and a rapidly growing interest in renewable energy. Utah?s abundant sunshine and clear skies offer an ideal setting for solar power generation, placing it among the top states in the nation for solar potential. The state?s commitment to clean energy is supported by attractive incentives, including tax credits and net metering policies, making solar installations increasingly accessible and affordable for Utahns. This push towards solar energy is not only helping to reduce electricity costs for residents but also supporting Utah?s environmental conservation efforts by reducing reliance on fossil fuels. Learn how embracing solar power can illuminate your home, decrease your carbon footprint, and contribute to a cleaner, more sustainable future for Utah. Join us in harnessing the abundant energy of the sun and stepping into a brighter, more sustainable future in the Beehive State.

Solar State Incentives

Utah State Solar Incentives

Local Option - Industrial Facilities and Development Bonds
Utah's Industrial Facilities and Development Act allows counties, municipalities, and universities to issue bonds for industrial development and green energy projects.
Utah Commercial PACE financing program
Utah's Commercial Property Assessed Clean Energy (C-PACE) program allows property owners to finance energy efficiency and renewable projects through their tax bill. The program is administered by the Office Energy Development.
Alternative Energy Development Incentive (Personal)
Utah's Alternative Energy Development Incentive offers a tax credit for 75% of new state tax revenues from eligible energy projects. Projects must generate new revenue and jobs.
Alternative Energy Development Incentive (Corporate)
The Alternative Energy Development Incentive (AEDI) offers a non-refundable tax credit for up to 75% of new state tax revenues from eligible energy projects. Applicants must provide regular reports to maintain eligibility.
Dominion Energy - Residential Solar Assisted Water Heating Rebate Program
Dominion Energy offers $750 rebates to residential customers installing solar water heating systems, with application submission within six months of installation.
Renewable Portfolio Goal
Utah's Energy Resource and Carbon Emission Reduction Initiative, S.B. 202, sets a goal for utilities to use renewable energy for 20% of their 2025 adjusted retail electric sales, provided it's cost-effective.
Salt Lake City - High Performance Buildings Requirement
Salt Lake City mandates all public buildings to meet LEED 'silver' certification. Private buildings getting city funds must also achieve LEED standards.
Dominion Energy - Home Builder Gas Appliance Rebate Program
Dominion Energy offers rebates to builders constructing Energy Star and High Performance homes, given all requirements are met.
Dominion Energy - Commercial Energy Efficiency Rebate Program
Dominion Energy offers rebates to businesses for installing energy-efficient equipment, with varying rates based on equipment efficiency level.
Dominion Energy - Residential Energy Efficiency Rebate Programs
Dominion Energy offers rebates for residential customers installing energy-efficient heating equipment and weatherization measures.
Murray City Power - Net Metering Pilot Program
Murray City Power offers a pilot net metering program for customers with solar, wind, or hydroelectric systems. Excess generation is credited, with remaining credits annually granted to the utility.
City of St. George - Net Metering
St. George Energy Services Department offers a net metering program for customers using photovoltaic systems, with possible expansion to wind and other renewables.
Alternative Energy Sales Tax Exemption
Utah offers tax exemption for purchases or leases of equipment used for alternative energy production. Eligibility includes wind, solar, biomass, geothermal, hydroelectricity, and more.
Interconnection Standards
Utah mandates net metering for customers generating energy via renewable sources and has established three levels of interconnection requirements for systems up to 20MW capacity.
Net Billing
Utah's net metering policy applies to various energy sources, offering credits for excess energy. Multiple meters can be aggregated for billing, and certain municipalities have their own programs. Rocky Mountain Power's program includes unique features, including an export credit rate and inclusion of batteries in eligible facilities. New applications are now under the Net Billing Service schedule.
Solar Contractor Licensing
Utah requires solar system installers to be licensed contractors with specific certifications. Contractors must have a minimum of two years of experience and hold a valid NABCEP certificate.
Utah Solar Easement and Access Laws
Utah's solar easement provision allows parties to voluntarily enter into solar easement contracts. These contracts must include details about the affected properties, solar skyspace, and any terms or conditions. Under Utah's solar rights law, community associations cannot prohibit the installation of solar energy systems.
Renewable Energy Systems Tax Credit (Corporate)
Utah offers tax credits for renewable energy systems for both residential and commercial use, with different provisions for each category. The credits are periodically reviewed for continuation or modification.
Renewable Energy Systems Tax Credit (Personal)
Utah offers income tax credits for both residential and commercial renewable energy systems, including solar, wind, hydro, geothermal, and biomass systems. The credit varies based on system type and capacity.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.