Utah is blessed with abundant sunshine. Installing solar energy can significantly reduce and stabilize energy costs while helping to reduce air emissions that threaten Utah’s clean air. Rocky Mountain Power’s commercial utility rates have increased at a compound growth rate of 3.5% over the last seven years and their forecasts indicate future increases of over 4% per year.
The combination of the following incentives can offset a large portion of project’s costs:
- 26% Federal tax credit in 2020
- 10% Utah tax credit (capped at $50,000)
- ~30% Accelerated Depreciation (5-year MACRS)
As the cost of solar energy continues to drop, utilities, states, and the federal government are reducing their subsidies. The State of Utah is currently considering phasing out their state solar tax credit. The Federal solar tax credit is stepping down beginning in 2020. With today’s low-interest rates, this is an excellent time to install solar energy.