There are several important considerations to be kept in mind if you're investing in solar panels for your home or any other property, and certain potential financial incentives and rebates must be on this list if you're looking for a cost-effective solution. Certain such programs, which range in management from federal to state and even local government entities and certain individual providers, can provide major savings and offset some of the costs of solar panel installation and management.
At Intermountain Wind & Solar, we're proud to offer a huge range of solar panel installation and other solar power services to clients around areas like Salt Lake City, Utah, Boise, Idaho and more. We're also happy to assist clients with important information on any available financial incentives or rebates they may be able to take advantage of with regard to their solar power setup. Using Utah as our example for the purposes of this blog, here are some basics on the kinds of solar incentives and rebates you may be eligible for.
Known in an official capacity as the Investment Tax Credit (ITC), this is a federal program that applies to both residential and commercial solar projects. For 2024, this program allows owners of solar panel systems to deduct 30% of the cost of this system from their federal tax liability.
This credit can be claimed in the year that your solar power system is installed and placed in service. If you don't use the full credit amount in that year, it can be rolled over to future years until it is fully used up.
It's important to note that the ITC will not be quite so beneficial in the future - and those interested should take advantage now. It recently increased from 26% up to the current 30% due to the Inflation Reduction Act, but is scheduled to drop back to 26% in 2033 and 22% in 2034 - and then expire entirely in 2035. This means that the sooner you install solar panels and claim this credit, the more you will save.
Abbreviated RESTC, this is the only solar power incentive directly offered by the state government of Utah, one that's also available for other renewable energy systems like wind turbines and more. RESTC allows solar panel owners to claim 25% solar power project costs up to $400 for solar PV systems, and 25% or up to $2,000 for other renewable energy systems (whichever is less in both cases).
These limits were initially higher, but have been reduced as of the 2019 tax year. This credit can be claimed by both homeowners and owners of commercial buildings, and tends to be most favorable for the latter category - the rate is only 10% in these cases, but the maximum amount skyrockets up to $50,000 of tax credit.
Utah does have a state net metering policy in place as part of its renewable portfolio standard, and while this policy has had some challenges and proposed changes in recent years (which we can help you navigate), it can be useful to many solar panel owners. The most common version of such a plan is offered by Rocky Mountain Power in Utah, with options for solar panel systems up to 25 kW and business systems up to 2,000 kW.
For months ranging from June to September, this program offers tariff rates of 5.636 cents per kWh. For October through May, this number is 4.745 cents per kWh. This is much less favorable than many other US states, which offer full retail value for excess power sent back to the grid, but is still a helpful program for many.
Finally, for those interested in adding a battery storage system to their solar panels, there are also several rebate programs available. Rocky Mountain Power is again likely the largest such option here, offering the Wattsmart Battery Program that comes with a $400 up-front rebate per kilowatt of capacity up to 70% of equipment costs. This program also offers annual electric bill credits starting in the second year of operations.
These kinds of programs allow you to save even more money on your solar panel setup, and we're happy to help you navigate them or any others. Whether through assistance with financing or other important areas, our team is here to ensure you get the most cost-effective solar power solution possible.
As you can see, there are many financial incentives and rebates available for those considering solar panel installation. It's important to do your research and see what may be available in your area, as these programs can make a significant impact on the cost of your project.
Don't hesitate to reach out to us at Intermountain Wind & Solar for more information and assistance with taking advantage of these opportunities. We're here to help with solar power services around Utah, but also in places like Boise and other parts of Idaho. Contact us today!
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