Does solar make sense in Utah?
Yes, solar makes sense in Utah. As of the date of this blog, there is a nonrefundable tax credit of 25% of the solar system’s cost, up to a maximum of $1,600. However, this credit is being phased out with the maximum amount of credit to be reduced by $200 a year until it is phased out entirely in 2024. Like the federal tax credit, this credit is also nonrefundable, meaning you must owe Utah state income tax to receive anything from this tax credit.
You should contact a qualified tax expert and consult with them. Neither Freedom Forever’s family of independent authorized dealers nor Freedom Forever itself can give you tax advice. A qualified tax professional will understand your situation and be able to give you the most relevant advice.
Solar makes sense in Utah but you have to be careful
Rocky Mountain Power pays solar system owners $0.05639 per kilowatt-hour in winter and $0.05969 per kilowatt-hour in the summer. That’s less than it costs a solar owner to generate that power, so it makes sense to use all of the power you generate and export nothing to the grid. To do this, plan to size your solar system to produce no more than 60% of your usage. This way you use nearly all of your own power and send none to RMP.
If you have a system that produces more than 60% of your usage, consider installing home batteries. The batteries store the excess power your system produces so you can use it later. This also helps you avoid RMP’s export rate.
How net metering works in Utah
The most value you get out of the energy your system produces is for the energy that you produce and use in your home. There are no fees for using your own energy in Utah so the energy you generate and use is as close to free energy as it gets! Until 2033, the net metering rate at which you get paid for the energy you supply to the grid is $0.05639. That is roughly 50% of the rate that you likely pay for electricity in Utah.
The energy you generate and the energy you use in your home are checked once every 15 minutes. If you used more energy than you produced, you’ll be charged the regular rate for the amount of energy that you used. If you use less energy than you produced, then you are credited for that energy sent to the grid. Credit earned for the energy you sent to the grid can only be applied to offset the charge for any energy you used. Any excess credits are surrendered in March. You can’t carry credits over from year to year.
Note: Net metering is solely dependent on the electric utility provider. Individual practices may vary amongst different utilities, and from how it is described above.
Freedom Forever is ready to help you go solar in Utah
If you are ready to go solar in Salt Lake City, Utah Freedom Forever is here to help. You can go solar in Utah with confidence thanks to Utah’s net metering policy and Freedom Forever’s 25-year performance guarantee.
With the Freedom Forever 25-Year Guarantee, you can go solar with confidence knowing your system will produce the amount of energy promised for a full 25 years. If you experience any loss of production due to our fault, we’ll go ahead and fix your system. On top of that, we’ll go ahead and reimburse what you had to pay to the utility company while your system was down.