Blog > Policy Update

Utah Approves Extension of Solar Tax Credit

Utah Governor Gary Herbert signed a new bill into law (SB 141) that grants an extension to the state’s solar tax credit. The bill extends the cap on the maximum credit each residential solar system can claim under the 25% solar tax credit by two years. This bill provides stability for the Utah solar market as it adapts to changes to rate structures and net metering.

Key Provisions:
  • Extends a $1,600 cap on maximum credits under the current credit system for residential PV systems until 2020.
  • After 2020, the cap will decline by $400 annually and eventually disappear after 2023.
  • Only applies to residential PV systems
What’s the net effect?

SEIA and the Utah Solar Energy Association have both applauded this decision, believing it will bring much-needed stability and certainty to the Utah market. The cap was initially set to drop down to $1,200 at the end of 2018, but lawmakers compromised for the extension to help the growth of the industry and to bring more jobs to the state. Utah is currently the 8th largest solar-state, with a total of 1,599 MW installed cumulatively and over 6,100 solar industry employees.

Updates made in Energy Toolbase:
  • The Utah state solar tax credit is already in our incentive database and has been updated to reflect these changes.

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