Commercial Solar Incentives in Utah

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Utah Renewable Energy Systems Tax Credit

The Utah state government offers the Renewable Energy Systems Tax Credit to commercial businesses that install solar systems. Businesses that install solar systems smaller than 2 megawatts can receive tax credits on 10% or up to $50,000 of their installed system.

Wattsmart Battery Program

Rocky Mountain Power commercial customers who install solar panels with an energy storage system can take advantage of the Wattsmart Battery Program. Approved customers can receive an upfront rebate of $400 per kilowatt of battery capacity (covering up to 70% of the equipment costs), as well as an annual electric bill credit of $15 per kilowatt after the first year. 

Utah Net Metering Program

Many Utah utility companies also participate in net metering programs. Commercial customers with solar systems will receive energy credits on their next electricity bill for any excess energy their solar system produces in the current month. This program allows businesses to save on their utility bills while redistributing the excess energy back to the grid for community use. 

UT business owners may also take advantage of the federal solar incentives available. When applied in combination with the Utah's state incentives, these solar incentives have the potential to significantly reduce the cost of installing a solar system. 

Business Energy Investment Tax Credit (ITC)

The Business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Utah may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Utah business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Utah Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local Utah installer to see which federal incentives can contribute to your solar system. 

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