Lower Cost of Solar Panels In Utah: Solar Incentives, Tax Credits, Rebates

Are you a proud resident that wants to join your neighbors in this important new lifestyle? Then you should know about the available solar incentives that can help reduce the costs.

Utah has come a long way in the fight to popularize solar power. Perhaps you are still not 100% sure about investing in solar power, maybe the upfront costs seem a little too much, but not to worry, you will soon see why converting to solar power makes so much sense.

This guide explains how Utah solar incentives work for families to lower the cost of solar panels in Utah so that you can reduce your household carbon footprint.

Solar Energy in Utah: Peak Sunlight Hours Per Day

If you live in Utah, you know just how rich and fascinating your state is, from the flat deserts to the majestic canyons. Apart from that, Utah boasts of various resources, both renewable and non-renewable.

Although it is generally a sparsely populated state, that hasn’t deterred it from becoming one of the powerhouses when it comes to solar.

Count out Utah when ranking the worst states for solar energy because it comes in at number 12 in matters of solar capacity, that is according to the SEIA. Not just that, Utah is also among the top ten sunniest states in the entire country.

The Beehive State surpasses the 205 sunny days national average with its 238 days of sunlight, and if that doesn’t make it a great spot for solar power, nothing will.

Take, for instance, Milford and Salt Lake cities, each with 255 and 226 sunny days all year round. Your panels will never fail to work as they soak in all that sun throughout the year.

In 2022, Utah had about 2,780 MW capacity in comparison to 0.2 MW in 2007, which means that Utah residents realize how important this renewable energy is.

Locations of Solar Farms in Utah

To further attest to this, there have been so many utility-scale solar farms in Utah that have around 2MW capacities all over the state, especially in the western part.

These have been of great service not only to Utah but also neighboring communities.

One of the most massive projects ever has got to be the Escalante Solar Project, a 240MW station in Beaver County.

How Much Are Solar Panels in Utah: Cost of Solar Panels Utah

You will appreciate the fact that solar power in Utah is booming right now and that the cost of buying and installing panels is relatively cheaper than in many places.⁸ The prices have been dropping all thanks to Utah solar incentives, easy accessibility to financing, and reduced tax liability, all reasons that have led to more homeowners going solar.⁵

On average, you can expect to part with about $21,000 when installing your first solar system. However, the cost of solar panels Utah can significantly reduce based on your installation size, your power needs, and whether you apply for solar incentives.

These could see the price tag reduce up to $15,000 or less.

Utahn homes usually set up 8 kW systems, slightly smaller than the national average and this is one of the reasons why the average price is lower. An interesting part about solar power in Utah is how the cost-per-watt is higher than the national average, yet the overall cost remains low.

You will pay around $2.68 for every watt that you install in Utah, against the national average of $2.66.

But still, given that most Utahns go for smaller systems, you will realize that you will pay less in comparison to any other person in the US when going solar. While celebrating the low cost of going solar in Utah, remember that there is a tiny disadvantage to it in matters of payback period.

The fewer energy needs and the lower energy bills have an effect of increasing the payback time from the national average of 12 years to 14 years. Thankfully, the amount of money saved all through makes adopting solar power all the more worth it.

How Does Solar Panel Cost Calculator Utah Work?

Investing in solar power is undoubtedly a crucial investment, not only because it can get pricey, but also because it means a lifestyle change. What you want to do is to make sure that you do thorough research about how much it is supposed to work and which equipment you need.

A great place to start is the solar panel cost calculators, and you will find several of them online.

Just from the comfort of your house, you can determine the number of panels you need, how much energy they will generate, and most importantly, how much they should cost you based on your current location in Utah because various regions and companies set their own prices. Using it is very simple, all you have to do is feed some required details and let the system work its magic by computing everything based on that data.

You can expect questions like your electricity usage, your daily solar hours, your roof area, and any other bit of information required. By the end of it all, you will realize that the number of panels you need basically depends on your energy needs, how much roof space you have, and the dimensions of the panels.

What Factors Affect the Cost of Solar Panels for Home in Utah?

There is one obvious question that you are aching to ask, whether this is your first time installing panels or not. Why are solar panels so expensive?

Well, it would make a lot of sense if you knew the design of solar panel. They cost a fortune because of the very expensive lithium and silicon material in the internal components.

That’s not all, the panels are also delicate equipment that has to go through rigorous manufacturing processes, using expensive material, and must be handled by very skilled personnel. Not to forget that soft costs also contribute to the price increase.⁹

Thankfully, the long-term savings that you will make later on makes the price worth it.

Did you know that panels don’t have to be too expensive? That there are factors that determine whether the price can go up or down?

Take a look.

Your Energy Needs

Say you have a massive household whose energy needs are off the roof. That greatly affects your system size.

While a basic 5 kW setup will be more affordable, you will have to pay way more if your energy needs call for a 9 kW or larger system because you will have to have more panels and wires, and the installation will take longer.

The Type of Installation

Roof mounting is what most homeowners are aware of, but what happens when your roof space isn’t enough, or there are other issues like damages?

In such cases, you will have to go for ground mounting, a more expensive type of installation that needs more specialized equipment and highly skilled labor.

The Number of Panels

This is probably the top factor that influences the cost of solar panels Utah. This is the main component of the entire system and costs the most.

If your energy needs call for more panels, just know that it means digging deeper into your pockets. And if the roof space is not enough, you will have to go for ground mounting, which will cost more.

The Extra Components Required

If you are thinking of installing batteries, EV chargers, or anything else apart from the panels, be prepared that the project will cost you more money. Batteries are a popular purchase alongside panels in Utah because of the poor access to net metering.⁴

It gives you total independence from the grid, but brace yourself for the high price tag.

Why Install Solar Panels Utah?

Are you still on the fence, unsure whether you want to install solar panels or not in your home in Utah?

It is understandable that the cost may be a bit of an issue because clearly, panels don’t come cheap.

But before you abandon the idea, you may want to know what you are missing out on.

#1 Solar Panels Are Cheaper in Utah

Did you know that the price of going solar in Utah is not that overwhelming? For one, many homes need just smaller systems, such that some can run on 5 kW setups that are way cheaper than the standard 9 kW required in most homes in the US.

Being a sunny state also has the advantage of ensuring that even a few panels get the job done.

#2 Solar Panels Have a Low Carbon Footprint

Do you pride yourself as an environmental lover? Then you know by now that the carbon footprint solar panels is lower than that of other nonrenewable energy sources.

The panels produce clean power, reducing the amount of greenhouse gas emissions from your home.

Even at the end of their service life, Utah makes sure that the panels are still safe for the environment. This is thanks to several solar panel recycling companies all over the states that you can easily hand over your old panels for safe disposal.¹⁰

#3 Utah Has the Perfect Weather for Solar Panels

Like any other homeowner, it is normal for you to be concerned about your panels not producing sufficient power. But you don’t have to worry about that when you are living in Utah, a state receiving 238 sunny days all through the year.

Apart from that, if you are worried about whether do solar panels work on cloudy days, no need because Utah has fewer cloudy days, which means that there is quite a lot of sunshine to power up your panels.

#4 Panels Increase the Home Value in Utah

The housing market will always be blooming, and any real estate expert will tell you that panels have led to a drastic impact.¹ Solar-powered homes are now selling quicker than ever because everyone is starting to realize that the future is solar.

By how much does solar increase home value? You ask. A whole 4.1%, sometimes more if you live in a high-cost area like Park City and the likes.

Utah Solar Incentives You Should Know

Solar rebates from the government couldn’t have come at a better time when everybody wants to install panels but is overwhelmed by the costs.

The rebates are instrumental in reducing the cost of solar panels in various parts of the country, and sometimes you may end up saving even half of the cost.

This is exactly what Utah solar incentives have done over the years, trying to make solar more accessible to the people, such that even low-income families can be proud solar power owners. Take a look at the incentives changing the Utahn solar market.

Federal Solar Tax Credit

The first on the list is the Federal Solar Tax Credit, the only one of its kind. Not only is it one of the most lucrative Utah solar incentives, but it is one of the most notable in the entire country since it is present in all 50 states.

It has been working since 2005 and was extended when it almost expired, giving you a chance to make good use of it until the end of the year 2032.

So what is it all about? Well, the tax credit from the national government is an incentive that allows you to receive back 30% of the money that you used to install your panels.⁷

This amount comes in two forms, either a reduction in your tax liability or as a tax return. Soon after completing the installation, you can apply for it and have it within no time.

If you have spent, say, $21,400 on the project, you can expect the Federal Solar Tax Credit to boost you by saving you more then $6,000.¹¹ You don’t have that much as your tax burden, not to worry, because it can simply carry over to the next year, and the next, for at least 5 years.

It is now pretty easy to see why it is the most anticipated solar incentive in the entire country, not just in Utah; you don’t want to miss out on this incredible chance.

To take the ITC in Utah, complete IRS Form 5695 with your standard Form 1040.¹⁶

Net Energy Metering

Another very famous solar incentive that is offered in most parts of the country is the NEM. homeowners appreciate the fact that they have a choice to link to the grid when they have to and receive credits that help reduce utility costs in the future.

Others also choose to go off-grid and fully depend on their panels.

If it seems like something you would be interested in, you should know how it works first. You see, your panels, more often than not, generate excessive power, which your household may fail to consume.

You can opt to “sell” this power to your utility provider in exchange for electricity and credits that come in handy to offset the cost of what you have used.

Seems like a great deal? It is rather unfortunate that it is not mandatory for Utahn utilities to provide NEM.

This shuts out most people who would have wanted it, forcing them to go off-grid, using batteries as backups. While there are many utility companies like RMP that do offer it, the rates are certainly not as attractive as in states where net metering is mandatory.

Wattsmart Battery Program (RMP)

Rocky Mountain Power, one of the largest utility providers in Utah, also has something for its customers to encourage them to embrace solar power. If you are thinking of going off-grid, fully relying on batteries to power up your home at night or when the weather is poor, RMP has an incentive for you in the name of the Wattsmart Battery Program.

But why do they care, you may ask. Look at it from this point of view, you getting a battery eases the pressure of the RMPs grid.

When the pressure reduces, the company will have an easier time maintaining its equipment and it ends up spending less money in the long run, which makes it a win-win for both parties.

The rebates stand at $400 for every kilowatt in your batteries. However, the amount is capped at $12,000, which means that the maximum battery capacity you can claim is 30 kW.

It is a pretty great deal considering how expensive batteries can get. To make full use of this incentive, you have to ensure that you are using Sonnen batteries, which are usually 5 kW and if you do the math, you will realize that each of the batteries you install will give you a $2,000 cash back guarantee.

Another plus is that it is also quite easy to apply for. Once your system is up and running and you have the batteries installed, you can go over to the RMP website and click “Apply Now” on the battery rebate.

It will require that you make your profile, complete and submit the application. One amazing thing about the perk is that batteries are very popular in Utah because of frequent power outages and unattractive net metering policies.^6,12

Local Solar Incentives

Cities and local companies are also not left behind in the creation of solar incentives for the people. The goal is to make the investment as attractive as possible while benefiting from it as well.

What you can do to be certain is to check with your local utility provider before installation to see whether there may be new incentives in the area; who knows, you may actually spare some money from your installation.

• Murray City Power NEM: Lucky are you if you live in Murray because your local utility company is offering you net metering at the best retail rate in the market, which other states with mandated NEM are offering. You will have an attractive rate for each kWh your system produces, and you will actually save up a lot of money
• St. George net metering: Like in Murray, living in St. George guarantees that you have full and proper access to net metering, but not like other Utahns. Here, you get nothing but the full rate, which is an excellent reason to go solar

How Does Net Metering Reduce the Cost of Solar Panels Utah?

Net metering Utah is sadly not as attractive as in other states. Apart from only a few cases in various cities, the retail rate for the solar power you “sell” is not charged at the market price.

The reason for this is that NEM is not mandated by Utah, meaning that utility providers can choose not to offer it, or charge a very low rate when they do.

In a typical scenario where net metering comes at an excellent rate, you will likely find yourself saving quite a lot of money in the process. Don’t know how that is possible?

Here is how it all works. First things first, you know that your panels don’t work at night right?

You are also aware that the system will likely generate excess power that will only go to waste.

So why don’t you use that to your advantage? For one, instead of receiving power from the grid at the normal rate at night when your panels are not working, why don’t you use credits to reduce or offset the amount.

Otherwise, you will only end up paying more money. Secondly, why let the excess power go to waste when you can send it to the grid instead?

Net metering is the solution to the two problems and is a win-win for you and the utility company. You receive credits while the company increases the amount of power that it gets from renewable sources.

You may actually end up not paying a dime for the power from the grid when you have enough credits, which is an excellent way to save money.

Why the Federal Solar Panel Tax Credit Is One of the Best Utah Solar Incentives?

The changes in the federal energy credits have undoubtedly changed the state of the solar market.¹³ Ever since it started in 2005, there has been a massive increase in the number of people choosing to go solar.

Knowing that a large portion of your installation budget will be slashed by the government is a good enough reason to change your mind.

Amid its fame, some residents in Utah don’t really know what it is all about. This is a solar incentive from the government that works against your tax liability.

If 30% of your installation cost is $6,000, that exact amount will be deducted from the taxes that you are supposed to pay in that year. Knowing how much solar systems cost, you will know that 30% is quite a lot.

The rate will drop to 26% after 2032, meaning that the best time to apply for it is now.² Also, remember that this incentive is only applicable when you have already completed the project, not before.

It is also not a cashback program but a tax credit.

If you are asking how does the solar tax credit work if I don’t owe taxes, the answer is no, it doesn’t work like that. You have to have a tax burden for the amount to be deducted from it.

Not having a tax liability, unfortunately, shuts you out of the program.

What Happened To the Utah Solar Tax Credit?

The Utah solar tax credit has been in effect for a long time now but it is slowly nearing its expiry date. Although it was supposed to offer 25% of the installation off your taxes, the amount was capped at only $800, which was a bit restrictive.

The cap was for all installations before the end of 2022, but in 2023, the cap was slashed to $400, and this should be in effect until the end of 2023, that is, unless they extend it or later come up with more favorable policies.

Which Utah Solar Incentives Are the Best?

Nothing saves you money on your panel installations like solar incentives. They give you the boost you need, and many choose to apply for as many of them as possible to guarantee more savings.

In a state like Utah where there are fewer incentives and some that are not as valuable as those in other states, you want to take one more of them to increase your savings.

Regardless of which ones you go for, none of them will be as lucrative as the federal solar tax credit. It is famous countrywide for one reason, allowing you to save as much as 30% of your total installation cost, and who wouldn’t jump at the thought?

Slashing a five-figure amount off is quite a lot of money which will go a long way to reduce the system’s payback period.

In comparison to net metering, it is one of those incentives that are available for each and every Utah resident, provided that they have a tax liability. NEM is also not that bad, although the only problem is that you will likely not get the most out of it as you would expect.

But still, it means saving money, which is what you are going for anyway.

Solar Programs in Utah: Where Can You Get Free Solar Panels Utah?

Considering the cost of solar panels Utah, it is expected that you would ask how to get solar panels for free. The Utah State Office of Energy has been very kind to offer amazing solar programs for schools in the region.

The most famous incentive has the same working principles as Renew America’s Schools,¹⁴ where the state government provides funding/ grants for schools to help them switch to solar power. It is called the Solar for Schools in Utah, and it has been very successful over the years.

Not only does the program help the institutions save money that would have otherwise gone to utilities, but it also allows them to save for other programs that are of benefit to the school.³ Apart from that, there is also the Solar for Nonprofits which gives NGOs a chance to make the switch to renewable energy.

The groups that could benefit from this could be churches or any other organization that is of public interest.

Unfortunately, these programs do not cut across to residential buildings. There is currently no program in Utah that will give you free panels.

The closest you can get to have a great deal is by using the Utah solar incentives, which will only go as far as reducing the cost, not fully offset it. You can, however, apply for as many as possible to see that your savings increase.

How Do Utah Solar Rebates Reduce the Cost of Solar Panels Utah?

Each and every Utah solar incentive has a special mode of operation, and they have all proven to be successful in helping you save money.

The most impactful has been the federal solar tax credit that has given Utahns a rare chance to save almost a third of their solar panel costs.

How it helps you reduce the project’s expenses is pretty straightforward because the money is deducted from the amount of taxes that you owe.

Another incentive, net metering has also been credited with reduced solar panel costs and lowered payback periods in other states. It does the same in Utah but not to the same extent because the NEM retail rate is lower than the normal retail rate.

This is because of the fact that the state’s net metering is optional; hence utility providers are comfortable with setting not-so-attractive rates.

Using NEM means saving the amount of money that you would have otherwise used to pay for the grid electricity. The low rates offered by Utahn solar companies may not be very enticing, but it doesn’t take away from the fact that they also help you save some money.

The Wattsmart Battery Program by RMP also has a role to play in helping you reduce your system’s cost, especially considering how expensive it is to buy the batteries as part of the entire system.

How Do Utah Solar Incentives Reduce the Cost of Solar Panels Utah?

Utah is one of those states that don’t boast of so many incentives, only a few, but all the ones available are still very impactful. Take the federal solar tax credit, for instance, with 30% off on your panel installation.

Net metering also has an appeal to the locals, although the rates are not very friendly. Lastly, there is the battery rebates program from RMP that gives you a cashback of $400 per kilowatt of batteries you install and other local incentives from utility companies and cities.

Before You Start Solar Panel Installation in Utah

Solar panel installation is probably one of the most crucial projects you will ever carry out for your home and may be the most expensive. Therefore, it is only wise that you take some factors into consideration to avoid making any mistakes, especially if you are a first-timer.

#1 Will You Link to the Grid or Go Off-Grid?

As a solar panel owner, you basically have two options, either link to the grid or entirely rely on your panels,¹⁵ and this has a cost implication. Going off-grid means that you will have to buy a battery to serve as a backup at night or on any other occasion where the panels are not working.

#2 Is Your Roof Okay?

If you are going for the traditional method of roof panel installation, you will have to consider how your roof looks. If damaged, weak, or faulty, you will have to go for alternative methods like ground mounting, which are obviously more expensive.

#3 How Will You Finance the Project?

There are other ways to pay for solar panels, that is apart from cash or upfront payment. If you don’t have all the money in your account, you can always go for solar or personal loans to give you a boost.

Alternatively, if you are from a low-income family and don’t want to deal with loan repayments and interests, you can opt for solar leasing or Power Purchase Agreements where you will need little to no money to get the project up and running.

Is the Solar Panel Installation Cost Utah Worth It?

Everyone is now talking about solar power. The future is gradually shifting in that direction, and it is clear to see by the increased number of conversions over the last decade.

You may also be thinking about it but holding yourself back, asking yourself one question, is solar worth it in Utah?

Of course, it is, and there are several reasons to support it. For starters, look at the weather.

With more sunny days than the national average, your panels will never have an excuse not to run. Your system will always work at its optimal level.

The best part about this is that most Utahns don’t need massive systems and can make do with small, less expensive panels.

The panels are cheaper in Utah than in most parts of the country, and that should be a great reason for you to go solar. It will save you a lot of money on utility bills, and you won’t have to spend too much while at it.

Also think about all the good that you will be doing for the planet, making the world a better place for the coming generation.

If you live in the Beehive State and are on the fence about whether to install solar power or not, this guide should be enough to sway your decision. You are missing out on so many amazing benefits, from reduced energy bills to independence from the grid and several more advantages.

Is the cost a deal breaker for you? You need not worry about that because Utah is one of the best places for solar panels.

It is not just about the perfect weather and the high number of sunny days.

The investment is also worth it because there are some very impactful Utah solar incentives that have been effective in reducing the cost of solar panels Utah.