Why Solar Power Actually Pays Off Even In Regions With Cheap Electricity
In the sunny Mountain West solar panels can make a lot of energy.
Andrew Blok
Associate Editor
Andrew Blok has been an associate editor at CNET covering HVAC and home energy, with a focus on solar since October 2021. As an environmental journalist, he navigates the changing energy landscape to help people make smart energy decisions. He’s a graduate of the Knight Center for Environmental Journalism at Michigan State and wrote for several publications in the Great Lakes region, including Great Lakes Now and Environmental Health News since 2019. You can find him in western Michigan watching birds.
For solar panels to make financial sense, they need to save more money than they cost. The local cost of electricity and solar installations, the amount of available sun, financial incentives and personal energy consumption all have a place on the balance sheet. While people adopt solar power technology for more reasons than saving money, it is a big one.
Homeowners in the mountain west have several things going for them in making solar power worth it. Plenty of sun and cheaper-than-average solar installation costs make solar power an attractive option. Cheaper-than-average electricity might hold some back. Knowing if solar will pay off requires a bit of raw data.
Read CNET’s coverage of other regions’ solar potential: New England, the East Coast, the Midwest, the South and the West Coast.
How Much Sun Does Your Roof Receive
Solar panels harvest the sunlight that normally would hit your roof and use it to produce electricity for your home. As such, solar photovoltaic equipment is more valuable in areas where sunlight is intense and abundant. Utah as a whole experiences around 222 sunny days every year. This is higher than the national average of 205 days, which means most homes in Utah are better suited for solar panels than those throughout the rest of the country. With that being said, not all homes in Utah are right for solar, so you need to assess your property on an individual basis. First, youll want to look at the direction your roof faces, as south-facing and west-facing roofs are the best options in the US for their exposure to sunlight. Next, you should check your roof for shading from trees or buildings, as any obstructions to the available sunlight will reduce power production and make your panels less valuable.
Federal Solar Tax Credit
The Federal Solar Tax Credit represents the dollar-for-dollar reduction program in the income tax amount. Utah residents who opt for solar power qualify for the 26% federal tax credit on the solar panel installation cost. For example, if you pay $15,000 for the solar energy system installation, youd qualify for a $3,900 tax reduction.
Note that the credit amount is set to drop 4% starting in 2023. This means that you should invest in solar before in order to maximize your savings. All tax credits are redeemable until 2023 when they expire unless renewed by Congress.
Other than the federal ITC, there are other incentives depending on the area and utility company.
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Accolades
Every solar energy system is customized based on many different factors, including your electricity needs, home structure, utility company rules, state and federal incentive programs, geography and topography. System production may be decreased by several factors that would affect the production guarantee. Refer to your specific installation agreement for exclusions and/or other factors.
The statements made by Freedom Forever are based on the data available as of the last update to this website. There is no express or implied dollar savings guarantee. Statements regarding tax rebates and/or incentives are not guarantees you should seek advice from a tax professional regarding any rebate terms and/or qualifications. Warranty and repair of the system are subject strictly to the specific terms and conditions stated in your installation agreement.
For more information about the Illinois Shines Adjustable Block Program by the Illinois Power Agency, please read the Illinois Shines Brochure.
Should I Buy Or Lease My Solar Panels
When you decide to install solar panels on your home, you can choose to either buy or lease them. If you can manage the upfront fees, youll end up saving more money in the long run by purchasing your solar panels. Solar panels pay for themselves in 6 to 9 years on average. After that, youre saving money for every watt of electricity your panels produce. Buying your own solar panels also allows you to take advantage of the federal and state tax credits, and it can increase your homes resale value by an average of $15,000.
While leasing solar panels isnt as cost-effective as buying your own solar panels, this option has certainly helped to make solar power more accessible. If you dont want to pay the large upfront costs of buying solar panels, leasing is a great option. Its also a good option for people who rent their homes, since buying panels may not make sense.
Another way to benefit from solar energy without the upfront costs is a community solar program. With a shared or community solar project, many homes share the power generated by an offsite plant. This option is great if you cant afford solar panels, live in an apartment, and in other situations.
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Dominion Energy Residential Energy Efficiency Rebate Programs
The Dominion Energy Residential Energy Efficiency Rebate program rewards customers for things that make their homes more energy efficient. Whether it is solar batteries, a smart thermostat, or new windows, there are different amounts of incentives that you will get from this program.
One of the options that help solar customers save money is the solar-assisted water heating rebate of $750. There is a full list of the incentives on the Dominion Energy website. There are maximum amounts you can claim, but the program is a great way to increase your total savings as you upgrade your home.
Save Money On Energy Bills
While solar systems can be expensive to install, if you plan on living at your current location for many years, you can actually save money on energy bills in the long run.
Currently, energy bills in Utah range from $8-16 for a single family home each month, plus an additional charge based on the energy you use. Right now, thats $0.082126 per kWh for the first 400 kWh and $0.105959 for all additional kWhs each month.
These bills add up over time, and by purchasing solar panels you can save money in the long run.
Youll also avoid price hikes on electricity rates. No one knows what energy prices will be in the future. Prices could go up substantially as they have in other places. Solar panels help you avoid that since youll be producing your own electricity.
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Best Solar Installation Companies In Utah
Below is a quick list of our top seven solar companies in Utah:
- Best Financing Options:Blue Raven Solar
- Best Warranty Coverage: ES Solar
- Best Customer Service: Creative Energies Solar
- Best Local Experience: Solar Works Energy
- Best for Emergency Energy Backup: Smart Wave Solar
- Best for Full-Service Installations: Mynt Solar
Get free quotes from solar installers in Utah.
How Much Does Solar Energy Cost In Utah
The installation cost for solar panels in Utah depends on many different factors that are hard to gauge, including shading on your property, how many panels you need to power your home, the brand of panels you choose, and much more. Generally speaking, the average upfront cost for a solar project in Utah is around $13,000, which is already taking into account the federal tax credit.
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Utah Solar Panel Incentives Or Rebates
While the upfront costs of solar panels in Utah are high, there are several federal and state incentives and rebates to offset those costs.
The most significant incentive currently available is the federal Solar Tax Credit . The solar tax credit is 26% in 2022 and will drop to 22% in 2023. The credit is set to expire in 2024, so it might be smart to invest in solar panels soon to guarantee you receive the credit.
The state of Utah also offers potential ways for homeowners to save. The states renewable energy systems tax credit allows you to claim 25% of your solar panel purchase on your taxes, for up to $1,600 back on your taxes. Other initiatives in the state include Utahs renewable energy credits program and its solar easements and rights laws.
Wrap Up: Is Solar Worth It In Utah
Solar conversion is more popular in Utah than in most other states, and for a good reason: the majority of homeowners in the Beehive State save a significant amount of money when installing solar panels. However, solar isnt right for everyone, so you need to assess your homes solar viability before committing. Some things you need to consider during your calculation include your average monthly electric bills, the system size you need, the net metering program offered by your utility company, the direction your roof faces, shading on your property, and more. We suggest calling a reputable solar installer to help you figure out if solar panels will actually save you money.
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Lower Taxes & Access To Other Incentives
Despite producing most of its energy from fossil fuels, Utah incentivizes solar conversions, as does the federal government. One of the most significant solar incentives available in the Beehive State is the federal solar tax credit, also called the ITC. The ITC totals a massive 26% of your system expense, which averages out to $5,574 in Utah. This amount gets credited to your federal income tax liability for the year your system is installed. There are some additional Utah solar incentives, which well explain briefly below:
- Utah Renewable Energy Systems Tax Credit : This is a state tax credit in the amount of 25% of your total system expense up to $800 for the year your system is installed and commissioned. Most Utahns will receive the full $800 in 2022.
- Net Metering: While Utah doesnt mandate net metering, many of the electric companies in the state offer the program privately. Net metering helps you pay off your system expense more quickly and save more with your panels overall by letting you send power to the electrical grid for compensation.
- Rocky Mountain Power Wattsmart Battery Program: Rocky Mountain Power customers who couple their panels with a solar battery can receive a rebate based on the battery capacity.
Net Metering Policies In Utah
Net metering is not mandated in Utah, but many utility companies still offer this incentive to their customers. You should contact your power provider for information on its net metering program before you commit to solar. Net metering usually isnt a make-or-break factor, but you might need to consider a solar battery if you dont have net metering available or have a suboptimal policy with a buy-back rate thats below the retail rate.
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Does Solar In Utah Make Sense
There are many reasons why it makes sense to get solar, and Utah is a great place to get it. Not only is your utility bill going down every month, but the state has a number of great incentives for going solar. Utah residents can get a tax credit of 30% for their electricity usage if they go solar.
Are Solar Panels Worth It In Utah
Are solar panels worth it in Utah? The answer is yes. This can be evidenced by the growth in rooftop solar power in Utah. People are searching more for “solar panels Utah“, and Utah is becoming on of the fastest growing states in solar energy.
It’s an issue that is growing with electricity demand burdens but is also supported with tax incentives and rebates.
Organizations like the National Renewable Energy Laboratory predict that this will grow with time, but also predict that Utahns need to find ways to use less power.
It’s important for you to know what your options are when it comes to maintaining your home or business with solar panels.
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Dont Wait To Purchase Your Solar Pv System In Utah
With all the benefits you can expect to gain from installing a solar panel system, theres never been a better time to make the switch.
With rebates and tax credits to take advantage of, you can significantly reduce the cost of your system. Solar systems can help you save money on your utility bills.
Over the lifetime of the machine you may even turn a handsome profit.
Utah Senate Bill 245 Would Help Solar Companies Stay In The State
Solar panels cover Glenn Lamsons garage in his backyard in Salt Lake City on Monday, Nov. 2, 2020.
Kristin Murphy, Deseret News
For the last decade, America has been steadily moving towards utilizing renewable power sources. Thousands of Utahns have recently installed rooftop solar on their homes. Large tech companies investing in Utah, like Facebook, have committed to using 100% renewable sources of energy, including rooftop solar. And an astonishing 7,000 Utahns are currently employed by solar companies.
However, just a few months ago, Utahs rooftop solar industry was tragically decimated by a little-known decision by the Public Service Commission. After the decision, solar companies began leaving Utah immediately, just in an effort to survive. New solar installations came to a screeching halt. As one solar company executive recently stated, I dont know why any solar company would ever stay here. The sooner they leave Utah, the better their chance of surviving.
For a state like ours, with so many companies relocating here and the influx of new residents making it difficult to even buy a home, this fleeing industry is truly an outlier in Utah.
In the final days of this session, the state legislature has an opportunity to help this critical Utah industry one that is not only helping clean our air, and address climate change, but one that also employs thousands of Utahns. For now.
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Solar Installation Cost In Utah
The installation and solar panel cost in Utah is a little different from other parts of the world. Here is a basic breakdown on average costs:
For homes 15 kW to 100 kW: $17,000 per system
$17,000 per system For homes 100 kW or more: $39,000 per system. This includes a solar tracker system and inverter. Inverter can reduce your electricity use by 20-30%.
Because the solar industry is still very new, youll need to do some research before making your decision. If you want to go solar in Utah, youll need to understand how much it will cost and how to make the most of your investment.
Residential systems are more expensive to install due to the fact that there is more equipment that needs to be installed on your roof. You may want to consider a solar system on your business first if you live in an area where this is possible.
Businesses are more likely to go with solar because theyre considered separate entities from your home.
However, you can make solar more affordable by getting a solar loan. This will allow you to pay off your system in installments so its not all at once. As the cost of solar continues to fall, many Utah residents are finding that solar energy is an affordable investment for them.
Where To Go To Learn The Tax Incentives
If you are considering solar panels, it is important to check with your local tax office to see what kind of credits exist. If you have any questions about that, you should contact your financial planner about what can be done to help cut down your energy bills and taxes.
There are many other reasons why installing solar panels on your home makes sense. The biggest reason is that it will reduce your energy costs, but it can also help your home to become more valuable and help to make a positive environmental impact.
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Is Solar Worth It In Utah
Utah is among the seven US states with the highest solar power potential. In fact, the state aims to obtain 20% of its electricity from renewable resources by 2025 due to cost-effectiveness. So yes, solar seems to be well worth it in Utah.
If youre considering switching to solar in the Beehive State, this short guide explains why its a sound decision.
Heres What We Would Like You To Know About Us:
YOU WILL SAVE MONEY
Homeowners who go solar in Utah with Blue Raven will save between $15,000 and $30,000+ over a 25-year period depending on the size of their system and their current home energy use.
Well send a solar professional to your home to review your utility bills. Our analysts will quickly evaluate your bills and your roof to determine if you are qualified for maximum solar savings. If not, we wont waste your time.
YOU WILL GET PREMIUM SOLAR EQUIPMENT
Blue Raven Solar customers deserve the best, so we offer only one level of quality: top-of-the-line. Our solar arrays are built using only high-end black-on-black, monocrystalline silicon solar panels and Enphase microinverters. When going solar you want high-quality productions at a low price. Going solar with Blue Raven means you get maximum value.
YOU GET WORRY-FREE SOLAR OWNERSHIP
To make solar energy as dependable as the morning sun, we include a two-year productivity guarantee. Two years after installation, if our systems produce less than our original estimates, we update them with more panels free of charge.
We provide professional installation, and solar equipment warranties to ensure that you experience worry-free solar power system ownership.
YOU WILL GET THE FASTEST SOLAR PANEL INSTALLATION IN UTAH
WE MAKE GOING SOLAR EASY
WE ARE LOCAL IN UTAH
Local teams, local office, and local partnerships mean fast panel installation & net metering times, so you can begin saving with solar quickly!
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