When it comes to understanding the array of solar companies in Salt Lake City at your disposal, it can become overwhelming trying to make a choice on who to go with, let alone making the decision to go solar period. However, there are plenty of solar incentives for solar companies in Salt Lake City and the Rural areas of Utah alike.
Solar incentives are helping solar companies give Salt Lake City a better deal. Before these incentives were put into place, solar was quite a bit more expensive. This made it so only the wealthy could afford solar panels for home and their previous costs.
With assistance programs in place, solar has become an investment that makes financial sense. These incentives will not remain the same forever, though. They are subject to improve and change despite the recent solar tariffs.
Understanding Utah Solar Incentives
Going solar in Utah comes with numerous perks. These perks come in the form of different incentives that help people pay for their solar arrays, improving the financial prospects of citizens looking to be green.
These incentives can make a dramatic difference in the total cost and savings of your solar investment. Having a knowledge of the incentives out there will help you know what to expect when you go to get a Salt Lake City or Utah solar bid for your home.
Rural Incentives: Another Way to Compare Solar Companies in Utah
It is good to note that there are different Government programs out there to help farmers that need large setups to meet their energy needs. The Rural Energy For America Program (REAP) is a farm energy program set up to do just that.
REAP, at its inmost function, is a grant program. They have Renewable Energy System Grants which will cover between $2,500 and $500,00 of your costs depending on the size of your project.
If this grant is combined with a loan, then you are expected to come up with 25 percent of the total cost of the system on your own. If you are only applying for the grant, you are expected to come up with 75 percent of the project cost.
In order to apply to this program, make sure you fit their criteria. Below we have provided a list of their requirements:
- Be an agricultural producer with at least 50 percent of your gross income from agricultural operations.
- Or, be a small business in a rural area (an area other than a city or town with a population greater than 50,000).
With the help of this grant, 25 percent of your solar array would be covered. If you can qualify for this grant, you should consider applying for it while funds are still available.
Common Salt Lake City Metropolitan Incentives
For residential and commercial solar installations, there are a couple of different incentives. For the state of Utah, these incentives include both federal and state tax credits.
These tax credits can only be used if you owe taxes, so if you are on social security, these incentives will not be available for you. This is because these are credits given on taxes that you would have otherwise owed.
Utah’s 2018 Solar Tax Credits: Federal and State
Solar incentives can be divided into two different camps – federal and state, and the Federal incentives heavily dictate the degree of freedom states have to tailor green energy incentives to their liking.
Federal Solar Credits and Incentives
The federal government has a solar incentive for anyone who would like to install solar panels for their home. This allows individuals that would normally not be able to afford solar the ability to purchase these products. Although panel engineering and innovation is on the rise, therein reducing costs and reducing the amount of financial leveraging needed for the typical consumer to go solar in the state of Utah, loan-less solar is still a bit off in the future for the average consumer.
This is given through a 30 percent tax credit. In this credit, 30 percent of your solar array is covered by the federal government.
After your system has been installed, you file for this tax credit, and it is then credited toward taxes that you would normally have owed. This credit can be rolled over for up to five years.
This credit may decrease for both residential and commercial systems to 26 percent in 2020, which is still a hefty incentive, and doesn’t negate the investment value proposition of solar energy. In 2021 Residential and commercial system will decline to 22 percent.
After 2021, residential solar customers will no longer receive a federal tax credit. Commercial solar installations will get a 10 percent tax credit moving forward from 2021.
State of Utah Solar Credits and Incentives
The State tax credit works similarly to the federal credit. It also can be rolled over and is applied to taxes that would have been owed to the state.
Because of Rocky Mountain Power’s new transitional program the state tax credit might be put on hold. This is meant to change the state solar incentive into a constant while this program is in place.
Utah’s tax credit covers $1,600 of your solar set up for 2018. Under the proposed changes, this credit would continue until 2020 and then gradually decrease by $400 each year until 2024.
Unfortunately, these proposed changes may not be implemented. As a result, this tax credit will most likely continue to phase out with a yearly decrease by $400 and a termination date in 2021, which means there is still plenty of time to capitalize on the existing incentive. However, as mentioned earlier in this post, the incentives are only being reduced because solar innovation will drive down costs in the private sector by this time.
The Future of Salt Lake City Solar is Bright
As one of the best solar companies in Salt Lake City, Go Solar Group wants you to know about every solar incentive at your disposal.
When it comes to buying a photovoltaic residential solar array, knowing what incentives are in place and when they will expire will help you get the most for your dollar. You will get more out of your investment if you get solar while incentives are still there to make it an affordable option.
If you would like to know more about our specific pricing, you can fill out our quick survey. After you are done, a Go Solar Group solar consultant will call you to set up your free quote.