Utah Solar Rebates And Incentives

Rebates list

Utah Rebates and Incentives Summary

Utah Solar Rebates and IncentivesUtah is home to true wonders of nature: Arches National Park, Moab, Canyonlands, and the Great Salt Lake. Given the harsh desert climate, it’s hard for most things other than rock to retain color, as the pounding desert sun bleaches everything. But that sun also makes Utah an ideal state for solar energy development. And because of the climate, it is among the sunniest states in the country’s solar belt.

Parts of the state get upwards of 6.5 or more kilowatt hours of sunlight per square meter, and most of the state gets an average of 6.0 kWh of sunlight per square meter. The only states that get more overall sun are Arizona and Nevada. Despite this rich resource, the state still has a long way to go in terms of adopting solar and renewable energy.

For instance, the Open PV project, a database of installed solar projects throughout the United States, reports only one PV installation in the state. While that’s not indicative of the Utah market, it is telling. To help people in the state adopt more PV, Utah offers net metering, solar tax credits, and the state and some Utah utilities offer rebates to residents that install photovoltaics (PVs) and other renewables on their homes and businesses.

The state adopted a voluntary renewable portfolio goal, under which utilities need to pursue renewable energy, only if it is cost-effective. The goal, while similar to a renewable portfolio standard, does not ultimately establish renewable generation requirements for utilities. It was established under The Energy Resource and Carbon Emission Reduction Initiative, which passed in March 2008.

Under the goal, utilities must assess the cost-effectiveness of adding “qualifying electricity” that will generate electricity at the lowest reasonable costs. Qualifying generation includes renewables like wind and solar, and also nuclear energy, as well as some fossil fuel generation with carbon sequestration technologies. Under the goal, 20 percent of a utility’s electric generation must come from qualifying sources by 2025.

The majority of Utah’s current electricity generation comes from coal-fired power plants, according to the DOE’s Energy Information Administration. Two geothermal power plants, as well as natural gas-fired and hydroelectric generation provide the rest of the state’s electricity needs.

Search Federal Programs, Rebates or Incentives

Alternative Energy Development Incentive (Corporate)

The Alternative Energy Development Incentive (AEDI) is a post-performance non-refundable tax credit for 75% of new state tax revenues (including, state, corporate, sales, and withholding taxes) over the life of the project or 20 years, whichever is less. The actual amount and duration of an incentive is determined by the Office of Energy Development (OED) on a case-by-case basis.

Eligible projects include the construction of electricity generation facilities of 2 megawatts or greater that utilize hydroelectric, solar, biomass, geothermal, wind, or waste heat from an industrial facility or a power station in which an electric generator is driven through a

Alternative Energy Development Incentive (Personal)

The Alternative Energy Development Incentive (AEDI) is a post-performance non-refundable tax credit for 75% of new state tax revenues (including, state, corporate, sales, and withholding taxes) over the life of the project, or 20 years, whichever is less. The actual amount and duration of an incentive is determined by the Office of Energy Development (OED) on a case-by-case basis.

Eligible projects include the construction of electricity generation facilities of 2 megawatts or greater that utilize hydroelectric, solar, biomass, geothermal, wind, or waste heat from an industrial facility or a power station in which an electric generator is driven through

Alternative Energy Manufacturing Tax Credit

The Alternative Energy Manufacturing Tax Credit is a nonrefundable tax credit for up to 100% of new state tax revenues (including state, corporate, sales, and withholding taxes) over the life of a manufacturing project, or 20 years, whichever is less. The actual amount and duration of an incentive is determined by the Governor's Office of Economic Development (GOED) on a case-by-case basis.

Eligible projects include the manufacture of equipment that will utilize hydro, solar, biomass, geothermal, and wind energy to produce electricity. It also includes the manufacture of equipment that will help develop the following non-renewable energy sources: coal-to-liquids, nuclear

Alternative Energy Sales Tax Exemption

Utah exempts the purchase or lease of equipment used to generate electricity from alternative resources from the state sales tax. Eligible purchases or leases must be made for or by an alternative energy production facility on or after July 1, 2004, and before June 30, 2027. All leases must be made for at least seven years.

Eligible  resources include wind, solar, biomass, geothermal, hydroelectricity, and energy that is derived from coal-to-liquids, nuclear fuel, oil-impregnated diatomaceous earth, oil sands, oil shale, petroleum coke, waste heat from an industrial facility, or waste heat from a power station in which an electric generator

Building Energy Code

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP websites.

Changes to the energy code are submitted to the Uniform Building Code Commission. The proposed change is reviewed by the Commission at a monthly meeting to decide if it warrants further consideration. If accepted, the Commission determines if enforcement will be enacted as a statewide amendment or restricted to a specific locality.

Effective July 1, 2016, all residential

City of St. George - Net Metering

The City of St. George Energy Services Department (SGESD) offers a net metering program to its customers, and updated program guidelines and fees in September 2015.* 

Net metering is available to customers that generate electricity using photovoltaic (PV) systems. The net metering agreements available on the utility's website only pertain to PV, but wind and other renewable technologies may be eligible for net metering. If a customer wishes to participate in net metering with a wind system or other renewable technology, they should contact the utility. The utility may develop additional net metering agreements as needed. Similarly, the net metering

Commercial PACE Financing

Note: S.B. 273, enacted in March 2017, made several changes to the state's commercial PACE financing enabling legislation. The Governor's Office of Energy Development is currently revising the state's PACE program to implement these legislative changes.

Senate Bill 221 of 2013 authorizes local governments to adopt Commercial* Property Assessed Clean Energy (C-PACE) financing programs. Senate Bill 273 of 2017 made several amendments to this program. C-PACE allows property owners to finance energy efficiency and renewable energy improvements on their properties through a special assessment on their property tax bill, which is repaid over a period of time not to exceed

Interconnection Standards

Utah requires the state's only investor-owned utility, Rocky Mountain Power (RMP), and most electric cooperatives* to offer net metering to customers who generate electricity using solar energy, wind energy, hydropower, hydrogen, biomass, landfill gas, geothermal energy, waste gas, or waste heat capture and recovery. The bill that established net metering also established some basic rules for interconnection. In April 2010, the Utah Public Service Commission (PSC) adopted final rules for interconnection. The rules described below took effect April 30, 2010.

Utah’s interconnection rules are based on the Federal Energy Regulatory Commission’s (FERC) interconnection standards for small generators, adopted in May

Local Option - Industrial Facilities and Development Bonds

Under the Utah Industrial Facilities and Development Act, counties, municipalities, and state universities in Utah may issue Industrial Revenue Bonds (IRBs) or Industrial Development Bonds (IDBs) to promote industrial development and manufacturing facilities. In 2013, Utah extended eligible projects to include energy efficiency upgrades and renewable energy systems. Municipalities may issue revenue bonds in order to finance eligible projects. Proceeds from the sale of bonds may be used to pay for or to reimburse a the project owner, project user, or a lender for the costs of the project. With the added provision to allow reimbursement to lenders, the issuance

Murray City Power - Net Metering Pilot Program

Eligibility and Availability

Under a pilot program, Murray City Power offers net metering to customers that generate electricity using solar photovoltaic (PV), wind, or hydroelectric systems with a maximum capacity of 10 kilowatts (kW).* The utility will install and maintain a revenue meter capable of registering the bi-directional flow of electricity at the customer's facility. This program is currently available to customers on a trial basis. The program may be adjusted or discontinued by the Murray Municipal Council for any reason, at any time without any obligation to existing participants.

Net Excess Generation

Any customer net excess generation (NEG) is

Net Billing

Note: The Public Service Commission approved Rocky Mountain Power's transition program for customer generators in September 2017. Rocky Mountain Power ceased accepting net metering applications in November 2017. Existing net metering customers can be grandfathered under the previous net metering rules until 12/31/35. Any customer that owns or leases a renewable energy system, or purchases electricity from an independent energy producer operating a renewable energy system that was installed after November 2017 must take service under Schedule 136, the Transition Program. The summary below describes the rules for Schedule 136.  

Eligibility and Availability

Utah law required the state's only investor-owned

Questar Gas - Home Builder Gas Appliance Rebate Program

Questar Gas provides incentives for home builders who incorporate energy efficiency into new construction. Builders can receive whole house rebates for building Energy Star homes (certified by an eligible home rater) and High Performance homes . All equipment and construction requirements must be met in order to participate. The program application, builder participation agreement, and more details about incentive amounts and efficiency requirements are located on the program web site.



Questar Gas - Residential Energy Efficiency Rebate Programs

Questar Gas provides rebates for residential customers who make their homes more energy efficient by installing certain efficient heating equipment and certain weatherization measures. Incentives are available for windows, insulation and programmable thermostats.

For more information on incentives, program guidelines and terms, and to access rebate applications, visit the program web site or contact Questar.

Questar Gas - Residential Solar Assisted Water Heating Rebate Program

Questar Gas provides incentives for residential customers to purchase and install solar water heating systems (both for domestic and pool heating uses) in their newly-constructed homes. Rebates of $750 per system are provided to customers of Questar who install solar panels backed up by gas water heaters. 

To be eligible, customer must include with their applications an invoice or receipt that shows purchase date, price, and a description of the equipment, and submit that application within six (6) months of installation. The six (6) month requirement is retroactive for all systems prior to the rule change, which took effect January

Renewable Energy Systems Tax Credit (Corporate)

Utah's individual income tax credit for renewable energy systems includes provisions for both residential and commercial applications. The Utah Office of Energy Development administers the tax credit and has responsibility for revising the tax credit rules and certifying systems as eligible for the credit. Legislation (section 5) enacted in 2007 extended these tax credits through at least 2012. On or before this time, and every five years thereafter, the Utah Tax Review Commission must review the tax credit and make recommendations as to whether the tax credit should be continued, modified, or repealed. 

Residential Systems:

The individual income tax credit

Renewable Energy Systems Tax Credit (Personal)

Utah's income tax credit for renewable energy systems includes provisions for both residential and commercial applications. The Utah Office of Energy Development administers the tax credit and has responsibility for revising the tax credit rules and certifying systems as eligible for the credit. Legislation enacted in 2007 extended these tax credits through at least 2012. On or before this time, and every five years thereafter, the Utah Tax Review Commission must review the tax credit and make recommendations as to whether the tax credit should be continued, modified, or repealed. This legislation also expanded the tax credit language to include

Renewable Portfolio Goal

Utah enacted The Energy Resource and Carbon Emission Reduction Initiative (S.B. 202) in March 2008. While this law contains some provisions similar to those found in renewable portfolio standards (RPSs) adopted by other states, certain other provisions in S.B. 202 indicate that this law is more accurately described as a renewable portfolio goal (RPG). Specifically, the law requires that utilities only need to pursue renewable energy to the extent that it is "cost-effective" to do so. The guidelines for determining the cost-effectiveness of acquiring an energy source include an assessment of whether acquisition of the resource will result

Salt Lake City - High Performance Buildings Requirement

Salt Lake City's mayor issued an executive order in July 2005 requiring that all public buildings owned and controlled by the city be built or renovated to meet the requirements of LEED "silver" certification, at a minimum. A subsequent, related executive order was issued in January of 2006.

The Salt Lake City Council codified the requirements stated in the Executive Order in November 2006. The requirement applies to all new building projects over 10,000 square feet which are owned and operated by the city. The policy also affects the major renovation of public buildings when the work demolishes space down

Solar Contractor Licensing

Utah's Division of Occupational and Professional Licensing requires installers of solar energy systems to be licensed contractors. General electrical contractors carrying an S200 or an S201 license are authorized to install solar photovoltaic systems. The Division has also established solar-specific license classifications. License classification S202 is for Solar Photovoltaic Contractors, and S215 is for Solar Thermal Systems Contractors. A Solar Photovoltaic Contractor is licensed for the fabrication, construction, installation, and replacement of photovoltaic cell panels and related components including battery storage systems, distribution panels, switch gear, electrical wires, inverters, and other electrical apparatus for solar photovoltaic systems. A Solar Thermal

Solar Easements

Utah's solar easement provision is similar to easement provisions in many other states. Parties may voluntarily enter into written solar easement contracts that are enforceable by law. An easement must be created in writing and filed, duly recorded, and indexed in the office of the recorder of the county in which the easement is granted. A solar easement, once created, runs with the land and does not terminate unless specified by conditions of the easement. 

Solar Rights

Under Utah's solar rights law, enacted in 2017, community association governing documents other than declarations and association rules may not prohibit or restrict owners of detached dwellings from installing solar energy systems. The solar rights law does not apply to dwellings where the association has an ownership interest in the roof or to express prohibitions or restrictions on solar energy systems recorded in declarations of created by official association action before January 1, 2017.

An association declaration may prohibit the installation of solar energy systems. Declarations, as well as association rules, may impose a restriction based on system size, location,