Incentives for Renewable Energy Systems

State Incentives
Utility Incentives

Federal Incentives
- Solar Energy Tax Credit
- Rural Renewable Energy/Energy Efficiency
More Information on Incentives

UTAH RENEWABLE ENERGY TAX CREDIT

Utah individuals or businesses that install renewable energy systems (solar electric, solar thermal, passive solar, wind, hydropower, ground source heat pumps, water source heat pumps, direct use geothermal, geothermal for electricity, and biomass)* may claim the Utah Renewable Energy Tax Credit against their Utah income tax.

RESIDENTIAL ENERGY SYSTEMS

Individuals or businesses may claim a tax credit equal to 25% of the costs (not to exceed $2,000) of a residential energy system, including installation costs.
Homes, condominiums, apartments are eligible, but motorized dwellings, such as motor homes, are not eligible.
Tax credit is for the taxable year in which the qualifying residential energy system is completed and placed in service.

COMMERCIAL ENERGY SYSTEMS

For solar, wind, A business entity is entitled to a tax credit equal to 10% of the costs (not to exceed $50,000) of any commercial energy system installed, including installation costs.
Commercial systems that use wind, biomass, or geothermal energy and have a production capacity greater than 600 kilowatts are not eligible for an investment tax credit but are eligible for a production tax credit of 0.35 cents per kilowatt hour of electricity produced.
Credit goes against any income tax due for the taxable year in which the system is completed and placed in service.

* Energy-saving devices such as insulation, siding, thermal windows and high-energy furnaces do not qualify

View the complete rules and requirements for the tax credit on-line at: http://geology.utah.gov/sep/incentives/rincentives.htm

APPLY TO QUALIFY

Utah Geological Survey, State Energy Program

1594 W. North Temple, Suite 3110

Salt Lake City, UT 84114-6100

(801) 538-4798 | http://geology.utah.gov/sep/incentives/rincentives.htm

NET METERING

Investor-owned electric utilities and rural electric cooperatives in Utah are required to allow customers to connect renewable energy systems to the grid for their own use and to supply excess electricity to the electric grid.
The utility will "net" the customer's electricity use and production over the monthly billing period.
If net metering results in excess customer-generated electricity over the billing period, the utility will credit the customer for the electricity for at least the avoided cost rate – i.e., the cost the utility would otherwise incur to generate power if it did not purchase electricity from another source.
The customer may use the credit to offset purchases of electricity during future billing periods in the same year. Any unused credits expire at the end of the calendar year.
Eligible Technologies: Solar, wind, small hydropower, or fuel cells up to 25 kW.
Read the Net Metering Statute
Utah Geological Survey State Energy Program
For more information, contact your utility provider (they may offer net metering even if they are not listed here):

UTAH SALES AND USE TAX EXEMPTION

The purchase or lease of equipment used to generate electricity from renewable resources is exempt from the Utah sales tax.
Renewable resources include wind generation, solar, biomass, landfill gas, anaerobic digestion, hydroelectricity, and geothermal energy.
Eligible equipment: wind turbines, generating equipment, control and monitoring systems, power lines, substation equipment, lighting, fencing, pipes and other equipment for locating power lines and poles.
Ineligible equipment: tools and other equipment used in construction of a new facility, contracted services required for construction and routine maintenance activities and equipment utilized or acquired after the project is operational.
Eligible facilities must use renewable energy to produce electricity and have a production capacity of 20 kW or greater. A facility that has its generation capacity increased by one or more MW as a result of the machinery or equipment may also be eligible for the exemption.
Eligible purchases or leases made for or by a renewable energy production facility on or after July 1, 2004 and before June 30, 2009.
All leases must be made for at least seven years.

FEDERAL RENEWABLE ENERGY TAX CREDITS

RESIDENTIAL SOLAR AND FUEL CELL TAX CREDIT

30% of the costs for residential solar system.
Maximum:$2,000 for Photovoltaic (PV) and solar hot water; $500 cap per 0.5 kW for fuel cells
Eligible Technologies: Solar Hot Water, PV, Fuel Cells

BUSINESS ENERGY TAX CREDIT

30% of the costs for a commercial/industrial solar, solar hybrid lighting, and fuel cells; 10% for micro wind turbines; 10% for geothermal
Maximum: $500 per 0.5 kW for fuel cells; $200 per kW for microturbines; no maximum for all other technologies
Eligible Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, PV, Geothermal Electric, Fuel Cells, Solar Hybrid Lighting, Direct Use Geothermal, Microturbines

Contact:

Information Specialist - IRS
Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, DC 20224
Phone: (800) 829-1040
Web site: http://www.irs.gov

Farm Bill Grant, Section 9006

The U.S. Department of Agriculture (USDA) makes funds available for energy efficiency and renewable energy projects undertaken by agricultural producers and small businesses in rural areas.
USDA funds are available to those who can demonstrate financial need, are situated in rural areas of less than 50,000 people, and get 50 percent or more of their income from the production of agricultural products or own a small, rural business.
More information on the USDA Section 9006 Program is available at http://www.rurdev.usda.gov/rbs/farmbill/.