Solar Incentives & Tax Credits
Federal Solar Tax Credit:
These days, one of the best incentives most people can get to help reduce the cost of installing solar is the Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC). The ITC is tax credit for solar systems on residential and commercial properties. There is no dollar amount cap amount on the ITC, but it is important to note that it is a non-refundable tax credit, meaning the amount of credit you are eligible for is tied to your tax liability. We’ve said it before and we’ll say it again, talk to a tax expert.
For residential solar, the Federal tax credit value is as follows:
- 26% of system cost until 1/1/2023
- 22% of system cost until 1/1/2024
- Federal tax credit expires in 2024
- Looking for commercial tax credit information?
Eligibility for the ITC for residential customers requires that a system be “placed in service.” This means that installations must be complete by the end of the applicable calendar year to be eligible for that year’s credit. Alternatively, commercial customers must “commence construction” to qualify. The Solar Energy Industry Association has a helpful outline that explains the requirements taxpayers must meet to claim the ITC.
Utah State Solar Tax Credit:
The Utah tax credits are phasing down too. For residential systems, the cap dollar amount you can receive begins to phase down as follows:
- 25% capped at $1,200 until 12/31/21
- 25% capped at $800 until 12/31/22
- 25% capped at $400 until 12/31/23
- Utah tax credit expires in 2024
Financing Options & Programs
Utahns are fortunate to have a number of different financial tools at their disposal. Some solar installers offer financing arrangements for solar panels, or third-party ownership models (called leases or Power Purchase Agreements) that allow you to pay a monthly fee to access solar panels that are installed on your roof but owned and maintained by a solar developer. If you can’t install solar, shared solar projects allow you to purchase energy from a remote solar farm. If you would like to purchase and own your solar installation, the following incentives and financing options can help reduce the upfront cost of an investment in solar.
Please note, this information does not imply an endorsement of any programs listed. Utah Clean Energy does not guarantee the availability of any programs listed. Please inquire directly with the program provider for complete details.
Are you aware of other financing programs in Utah? Please let us know! Please Contact Us with details.
Traditional financing options vary by financial institution and although a traditional home equity line of credit can be used to finance solar, solar-specific loans are becoming more common. Learn more about the following mortgage and loan options, or inquire with your bank or credit union.
A personal line of credit can be used to finance solar. Learn more from the Consumer Financial Protection Bureau.
- A Home Equity Line of Credit (HELOC) is often the lowest-interest option to finance solar. Learn more about HELOC.
- FHA Title 1 Home Improvement Loans can be used to finance home repairs and improvements.
- Admiral’s Bank – FHA Title 1 Loan or Solar StepDown Loan
- GoldenWest Credit Union – Energy-Efficient HELOC
- Key Bank – Solar Specific Financing
- LRB Financial – HELOC or Personal Property Loan
- Weber State Credit Union– Solar HELOC
- Enerbank offers loans and solar financing through select contractors. Ask your solar contractor if these loans will be an option.