Power Your Life with Clean Solar Energy

Solar Incentives and Financing for Homes

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:

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:
Local incentives for local people! The Utah solar tax credit, officially known as the Renewable Energy Systems Tax Credit, covers up to 25% of the purchase and installation costs for residential solar PV projects, capped at $1,200, whichever is less. Learn more and apply here.

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:

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.

Mortgages:
 
Loans:

Loan Providers: