Utah Solar Rebates

Utah is among a select group of southwestern states that enjoy abundant annual sunshine and a high capacity for solar power. Utah, however, has been a bit behind its neighbors in terms of promoting solar energy through rebates and incentives. In March 2010, the state enacted its version of a renewables portfolio standard (RPS), which mandates that utilities to obtain a certain percentage of their energy from renewable resources. However, Utah's version is not so much a mandate as it is a target, requiring utilities to have 20 percent renewable energy by 2025, but only if it is "cost-effective" for them to do so.

Yet, regardless of RPS leniency, several Utah utilities are vying to meet the state's renewable goals with the state itself pitching in through a rebate program and personal tax credit. Here's what Utah homeowners have to look forward to when installing solar energy systems:

Renewable Energy Systems Tax Credit (Personal)

Active or passive solar thermal and solar electric systems, as well as a number of other renewable technologies, are eligible for a tax credit for 25% of their "reasonable installed system costs." Maximum credit is $2,000 per residential unit. Unused credit may be carried over for four years. For more specific information, see the Utah Geological Survey.

Renewable Energy Rebate Program

The state of Utah also offers a decent rebate program using $3 million federal Recovery Act funding. Rebates are available for both solar electric and solar hot water systems. PV systems earn $2 per watt installed, with a maximum set at the lesser of 25% of eligible cost or $8,750. Residential solar water heaters get 25% or $2,500. Home solar systems must be a minimum of 900 W and be no larger than 25 kW. All electric systems must be grid-connected and the modules must qualify for the Go Solar California Program. The program was enacted on April 19, 2010 and will last until funding is depleted.

For more information: Utah Geological Survey

Utility Rebates

Here is a quick synopsis of the utility rebate programs available in Utah. For specific information, see the Database of State Incentives for Renewables and Efficiency (DSIRE), which will have more details. Links to each utility's program website or related .pdf documents are provided below.

• City of St. George offers rebates at $2 per watt-AC with a maximum of $6,000. Systems up to 25 kW in size are eligible. Customers receiving a rebate must participate in the utility's net metering program.
• Logan City Light and Power offers $2/Watt up to $6,000 as well for residential systems. Maximum system size is 10 kW, but only the first 3 kW of home solar power systems are eligible for the rebate. Systems must be installed by a licensed installer, be grid-connected and all solar panels and inverters must have a 20-year and 5-year warranty respectively.
• Questar Gas offers a $750 rebate for gas water heaters that are "solar assisted." In other words, solar water heaters are eligible so long as they are backed up by gas water heaters connected to Questar Gas's lines. Pool heating systems are eligible as well and a similar rebate is available to home builder's who install solar water heaters.
• Rocky Mountain Power, in partnership with Ecos Consulting, also offers the apparent Utah-standard for utility PV rebates; $2/Watt up to $6,000 maximum. Equipment must be on the California Energy Commission's list of eligible modules and inverters and there must be warranties of 20 years on modules, 5 years on inverters and 1 year on installation. Note that the program opened on Feb. 15, 2010 and Rocky Mountain Power quickly received enough applications to fill its 107 kW aggregate limit. While the program is closed for 2010 homeowners are encouraged to submit applications regardless, putting them on a waiting list in case those ahead fail or decide not to participate.
• Finally, Washington City Power offers a $2/W rebate as well, with a maximum of $6,000 for residential systems up to 10 kW in size. If eligible and approved, rebates are meted out through a 50% credit on the customer's electric account and 50% in direct payment.