Located in the state of Utah, Logan, Ogden or their surroundings have a lot of sunshine and get an average of 238 sunny days per year, which is even above the national average. Therefore, these places bring an opportunity to invest in renewable energy. If you are living in Logan or its surroundings in Utah, you should know your opportunities to invest in the Solar Panel in Utah.
An Overview of Solar Energy in Utah: How to Save Money
Whereas the abundance of sunlight makes Utah an ideal city for installing solar panels, equipment costs are high. As a result, the use of solar energy is low and options to make the switch are also limited in the Beehive State. To maintain a balance, people living here should seek financial support from state officials.
Please note that you may be eligible for the federal solar tax credit and a shrinking state return. Since these advantages won’t stay for longer, you shouldn’t wait anymore to switch to Solar Energy in Utah.
Following are the available incentives you’ll be eligible for in the state of Utah –
Federal Incentive for Solar Panels in Utah
Like homeowners across the country, people living in Utah should take advantage of the federal solar tax credit, known as the Investment Tax Credit (ITC). The program facilitates the following facilities for homeowners in Utah –
You are eligible to get a deduction of 30% of your solar purchase including solar equipment, sales tax, and even labor. For example, if a homeowner buys a 6kW solar system, he could save approximately $5,000 with this return.
This federal tax credit also allows you to get a deduction from the labor costs and hiring costs of Solar Contractor in Ogden, Utah, and its surrounding areas.
Please mark that this program won’t continue long. In 2033, the 30% return will come down to 26% and to 22% in 2034. If the government does not decide to extend the program, it will end in 2035.
Tax Incentives and Rebates for the State of Utah
The state of Utah offers limited opportunities for solar energy for its residents, but it does offer a state tax credit. Unfortunately, the program also won’t continue in the future.
The Utah solar tax credit officially called the Renewable Energy Systems Tax Credits covers up to 25% of the costs of solar panel purchase and installation for its residents.
The program worth $1,600 is now phasing out by $400 every year until 2024. That means the credit worth $400 is only available for the next year.
If you purchase a solar system in this state, you do have access to a simplified version of net metering. Then, utility companies can purchase the excess solar energy generated from your Solar Panel in Utah and give you a credit adjusted on your next month’s energy bill.
Government Regulations on Solar Energy in Utah
Utah’s renewable portfolio standards (RPS) offer a voluntary scheme – a goal of 20% RPS by 2025. But, it’s not mandatory for utilities to make the switch to solar and the state has not yet reached the goal.
Going Solar In Utah – Final Thought
After considering all the tax benefits and federal programs, if you want to switch to this renewable energy, now is the time. Find a reputable Solar Contractor in Utah or its surroundings like Second Sun Solar that has experienced professionals to install, maintain, and provide all necessary support as per your requirements.
FAQs:
Q. Can you actually save money with solar energy in Utah?
A. With slightly expensive equipment and low traditional electricity rates, you may feel overwhelmed with the decision. However, in the long run, you will benefit from all the incentive programs and lower installation costs.
Q. Does Utah offer any property tax or sales tax exemptions on solar energy?
A. Unfortunately, the state doesn’t run such schemes as a property tax exemption or sales tax exemption on going solar energy.
Q. How many solar panels do you need to install for your home?
A. Determine the number of Solar Panel in Utah by factors like your electricity usage, the size of your home, the climate condition, the amount of energy you want to generate from solar panels, and more. Let a professional solar installing company like Second Sun Solar determine the number of solar panels your home needs.