Benefits of Solar Energy
Solar energy comes with multiple perks. Let's look at a few of them.
- Reduced carbon footprint: Using solar is a surefire way to reduce your carbon footprint and home fossil fuel dependency.
- Lowered energy bills: Solar panels allow you to generate your own energy to power your home, decreasing your periodic electricity costs. Going off-grid can eliminate your bills completely. Plus, a significant amount of states have adopted net metering, which permit you to earn money by selling your unused energy back to the grid.
- Better energy independence: Adding a solar battery storage system lets you have dependable energy during grid outages and storms.
What Solar Incentives Are Available to Salt Lake City Homeowners?
Governments and power companies often reward homeowners for adopting solar. Here are some of the rebates, tax credits or other programs you could qualify for.
Incentive Type: Corporate Tax Credit
Website: energy.utah.govIncentive Amount:
Commercial wind, geothermal electric, and biomass systems 660 kW or greater, and solar PV systems 2 MW or greater: 0.35¢/kWh ($0.0035/kWh) for 4 years
Other commercial technologies and commercial wind, geothermal electric, solar PV, and biomass systems smaller than 600 kW: 10% of installed cost
Photovoltaic systems between 660 kW and 2 MW: May choose either 0.35¢/kWh ($0.0035/kWh) for 4 years or 10% of installed cost
Incentive Type: Personal Tax Credit
Website: energy.utah.govIncentive Amount:
Residential: 25%
Commercial wind, geothermal electric, and biomass systems 660 kW or greater 0.35¢/kWh ($0.0035/kWh) for 4 years
Other commercial technologies and commercial wind, geothermal electric, and biomass systems smaller than 660 kW: 10% of installed cost
Solar photovoltaic systems 2 MW or greater: 0.35¢/kWh ($0.0035/kWh) for 4 years
Solar photovoltaic systems smaller than 660 kW: 10% of installed costSolar photovoltaic systems between 660 kW and 2 MW: May choose either 0.35¢/kWh ($0.0035/kWh) for 4 years or 10% of installed cost
Incentive Type: Rebate Program
Website: wattsmarthomes.comIncentive Amount:
Ductless Heat Pumps: Up to $1,700
Electronically Commutated Motors: Up to $100
Evaporative Coolers: Up to $200
Heat Pumps: up to $750
Ground Source Heat Pumps: up to $2,500
Rooftop Heat Tape Timer: up to $100
Room Air Conditioners: Up to $20
Smart Thermostats: $50
Whole House Ventilation Fans: up to $125
Manufactured Homes Duct Sealing: Free service available
Manufactured Homes Ductless Heat Pumps: Up to $1,300
Lighting: Special pricing at certain retailers
Heat Pump Water Heaters: up to $550
Insulation: Up to $0.10/sq.ft
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Salt Lake City
Choosing a company is the first step toward a well-oiled and valuable solar system. Make your choice based on the following vital factors.
Licensing and Training
If a solar energy system in Utah doesn't use distributed generation technology, the state exempts its installation from licensing requirements. For other jobs, solar contractors must hold license S202, a specialty classification from the Utah Division of Occupational and Professional Licensing. The license requires a 25-hour course to obtain. Solar installers can also earn accreditations from standards organizations and trade groups. The most prestigious ones in the industry come from the North American Board of Certified Energy Practitioners. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Salt Lake City
Different solar panel types look and perform differently. Monocrystalline panels offer the best energy production but cost more than other options and generally have the highest quality. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can enhance your solar system's performance. Not all solar companies offer these extras, so look for a company that sells them if it's crucial for you.
You can plan to spend about $16,450 on average for a five-kilowatt solar energy system in Salt Lake City. Use the table in this section to get an idea of how much Salt Lake City solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,161 |
| Solar Polycrystalline | $905 |
| Thin-Film | $529 |
| Solar Battery | $743 |
| Solar Home EV Charger | $2,786 |
Financing Solar Energy in Salt Lake City
There are numerous ways to pay for new solar panels, and the right one will help you decrease overhead. A few of the most common options include power purchase agreements (PPAs), cash payments, loans, and leases. Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they help you avoid paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Similar to an auto or home loan, you'll pay a set monthly rate with potentially $0 down. Solar leases allow you to pay a monthly rate to rent your panels, while a PPA lets you pay a variable rate based on only the energy you use. We generally advise against these options since you will not have ownership of your system and are disqualified from solar incentives, but they might be appropriate in particular circumstances. We recommend working with a contractor that offers multiple financing options. Ask each agent about what's available, and obtain more than one estimate for the best odds of keeping within your financial plan.
The table below lists the average payback periods for different capacities of solar systems in Salt Lake City.
You are eligible for a 26% federal solar tax credit for new solar power systems until the year 2032. Municipal and state governments and utility companies might also offer rebates, discounts, and dedicated financing plans that could save you more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.2 years |
| 2 kW | 4.4 years |
| 5 kW | 11.0 years |
| 10 kW | 21.9 years |
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Frequently Asked Questions About Solar in Salt Lake City
How much money could I save by going solar in Salt Lake City?
Is solar energy common in Salt Lake City?
Should I expect a property value increase after going solar?
Is solar installation a fast job?
What size should my new Salt Lake City solar system be?
How long does it take to pay back a solar loan in Salt Lake City?
How are a solar lease and PPA different?
If you choose a lease, you'll make fixed monthly payments.
With both leases and PPAs, you don't own your panels and lose eligibility for some incentives. Further, you'll have to "buy out" or transfer the contract if you sell your home during the term.
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