Is now the time to go solar?
If you live in Utah, the answer is a resounding yes. Wait too long to plan your photovoltaic installation, and you may miss out on some of the lucrative financial incentives and benefits of making the switch to home PV power.
No. 1: Phasedown of the Utah Solar Tax Credit
The Utah solar investment tax credit (ITC) will give you back up to 25 percent of your total home PV costs, with a maximum tax liability reduction of $2,000 — but only if your photovoltaic system is in operation by the end of 2017.
If you wait to go solar, you won’t be eligible for as much of a tax credit. Each year, starting in 2018, the maximum Utah tax credit is scheduled to drop by $400. PV power systems installed later than Dec. 31, 2021, will not qualify for any state credit.
To save the most on your photovoltaic installation, go solar now, while the Utah ITC is still at its peak.
No. 2: Uncertainty about Net Metering in Utah
No one can really say (at least right now) whether net metering in Utah is doomed. But the policy here could see some dramatic changes soon.
Late last year, Rocky Mountain Power made a motion for rate increases and additional billing charges for solar customers. The net metering proposal was suspended, but public hearings are scheduled for August 2017.
At that point, if the Utah Public Service Commission approves the proposal, new solar customers will see a slower payback on their home PV systems. Go solar now, and you may be able to get in on the current net metering terms.
No. 3: Concern about the Federal Solar Tax Credit
The federal solar ITC is slated to be phased out gradually and will be gone by 2022.
To claim the maximum tax credit amount — 30 percent of your home PV system costs — go solar by the end of 2019. In 2020, the federal ITC drops to 26 percent. If you wait until 2021, you can only claim a 22 percent tax credit.
As if that’s not reason enough to rush your photovoltaic installation, consider how our current administration feels about renewable energy. This past July — not long after celebrating “Energy Week” — the administration proposed a 69 percent cut in funding to the Department of Energy. The administration has also taken other actions that favor fossil fuels over renewable wind and photovoltaic power.
If the administration sets its sights on the federal solar tax credit, it could be repealed. To make sure you can take advantage of the incredible savings offered by the federal ITC, don’t wait any longer to go solar.
Do you have questions about planning your home PV installation? The professional team at Intermountain Wind & Solar, the region’s leading photovoltaic contractor, offers free consultations. If you’re ready to switch your Utah home to solar now, we’re ready to make the project happen. Contact us today to learn more.