Experienced Electrician for Salt Lake City & St. George Utah Areas

In-Depth Look At How Solar Energy Can Impact Your Energy And Financial Savings

Solar power has made significant strides in efficiency over the last decade, and can now provide homeowners with greater energy savings when they opt to have solar panels installed. Along with using renewable energy, the greater effectiveness of solar panels can now provide people with greater financial savings.

If you have been on the fence when it comes to solar panel installation for your property, something that can really help you move forward with your decision is understanding the financial and energy savings available with solar energy. Well, your local solar power specialists here at HedgeHog Electric are here to help you with an in-depth look at the savings available when you choose solar power.

Reduce Household Costs With Solar Power

Your electrical bill is often the highest of your utility bills, whether you have to run the AC or heat up your home to all the electronics that come with living in modern society. So, it only makes sense to consider solar panel installation as a way to cut down on the monthly expense that your electrical bill represents.

On average, Utahans pay $0.11 per kWh—kilowatt hour—and depending on the size of the solar panels you have installed and the amount of south-facing roof area dedicated to the panels, you can significantly cut down on the amount you pay. To help you visualize what kind of savings you may have, here’s an example:

Say you live in Southern Utah and have about 500 sq. ft. of south-facing roof that you can place solar panels on so that they receive the most sunlight possible. That area can accommodate around twenty-one, 320-watt solar panels. With those panels in place, the panels can generate about 6.7-kW of electrical power.

This amount of energy should be able to reduce your energy bill by $1,092 in just one year, not even counting the other savings you receive with renewable solar energy.

Net Metering in Utah

While solar panels can enable you to go off-grid, a major benefit that people look forward with solar installation is net metering. For Utah solar panel owners, net metering allows them to send the excess solar electrical energy back to the main electrical grid, and they are given credit on their electrical bill.

Those credits can be used when your solar panels don’t provide enough electrical energy for your needs, and you draw on the main power grid. That way, when the bill shows up, the credits can pay for that electricity usage.

In Utah, Rocky Mountain Power has one of the most robust net metering programs, though you should definitely talk to other electrical power providers to see if their program is better for your needs.

Available Solar Energy Tax Breaks, Savings, And Credits

Along with the continual household energy savings, there are renewable energy tax breaks, savings, and credits available for Utah residents who install solar panels. Below are the various savings available to you when you opt to go solar.

Federal Tax Credit—Investment Tax Credit

The largest savings is the federal tax credit, called the Investment Tax Credit (ITC). This credit will decrease in value over the years, but depending on what year you install your solar panel system, you can be eligible for these savings:

  • 2019 – The tax credit provides you with a federal credit worth 30% of the overall cost of your system for both residential and commercial solar systems.
  • 2020 – Tax credit is now 26% of the overall cost of the solar system for both residential and commercial solar systems.
  • 2021 – Both residential and commercial solar system owners receive a tax credit of 22% of the overall cost of the solar system.
  • 2022 – Only commercial business owners are eligible at this point, and they can receive a tax credit that amounts to 10% of the cost of their solar system.

You do need to own the solar panel system and no be leasing it to be eligible for this tax credit. If you have other questions about claiming the credit, our team can provide answers during your solar consultation.

Utah Tax Credit—Renewable Energy Systems

Utah residents also have an additional tax credit they can claim. Along with the federal tax credit, you can receive the Renewable Energy Systems tax credit, which allows you to claim 25% of the cost of your installation and equipment costs, up to $1,600 worth.

This credit—like the ITC—is scheduled to reduce over the next few years and will be eliminated by 2022, so if you are strongly considering switching to solar, now is the time to reap the most benefits.

Sales Tax Exemption

At this time, the only sales tax exemption available for Utah residents interested in buying solar systems is if you purchase a solar system that has a capacity of 2 MW—megawatt—which is the equivalent of a million watts or 2,0000 kW. Since residential homeowners don’t need that size of system, this sales tax exemption is effectively for commercial buyers only.

Let HedgeHog Electric Help You Enjoy Solar Energy Savings

No matter where you are in your solar energy conversion process, whether you are considering your options or you have purchased a system and need installers, HedgeHog Electric can help. Our electricians are experienced in solar panel installation, and we can assist you from start to finish so that you can enjoy the benefits of renewable solar energy.

To set up your solar panel installation consultation, feel free to contact us today! We are excited to help you enjoy all the energy and financial savings possible when you switch to solar energy.

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