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 for commercial projects can offset a large portion of project’s costs:
- 26% Federal tax credit
- 10% Utah tax credit (capped at $50,000)
- ~30% Accelerated Depreciation (5-year MACRS)
Utah residential solar and solar + storage projects are eligible for the 26% tax credit and a $1,600 state tax credit
As the cost of solar energy continues to drop, utilities, states, and the federal government are reducing their subsidies. The Utah residential tax credit will be reduced by $400 per year in 2022 to 2024. With today’s low-interest rates, this is an excellent time to install solar energy.