Are solar panels worth it in Utah? The 21st century brought with it a rise in residential and commercial solar panels. So many people are making the switch from their local power grid to renewable solar energy. But how do you know if solar panels are right for you?
In this article, we will explore why solar panels are worth it for residential homeowners and commercial properties in Utah.
Why choose solar panels?
Environmental benefits of solar
There are many forms of renewable energy today. From wind to solar, producing electricity without polluting the environment is more feasible than ever.
Solar panels are a renewable energy source that’s better for the environment than our current reliance on fossil fuels. Did you know that currently most of Utah’s energy comes from burning coal? Renewable energy only accounts for a small portion of public energy in the state, although that percentage is growing.
Solar panel allows your home or business to produce its own electricity and not rely on the energy grid. This reduces your carbon footprint.
More efficient and dependable power
Because our solar panels are independent from the existing power grids in Utah, your energy will be more efficient and dependable. You can avoid power outages that are the result of fire or storms by switching to solar panels. While the rest of your neighborhood is dark, you’ll be able to continue working as normal.
Increase your property values
Having solar panels can actually increase your property values.
According to a Zillow survey in 2019, “homes with solar-energy systems sold for 4.1% more on average than comparable homes without solar power. For the median-valued home, that translates to an additional $9,274.”
So, if your home is worth $500,000, you could sell your home for an additional $20,500 depending on the area where you live.
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, that’s $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.
You’ll 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 you’ll be producing your own electricity.
Tax credits may be available to you
Tax credits may be available to you. Currently, the federal government offers a tax credit for solar panel installations on residential and commercial properties.
In December 2020, the SEIA “successfully advocated for multiple extensions of this critical tax credit.” Currently a 26% Investment Tax Credit could be available to you for residential and commercial properties through 2022. According to SEIA, this allows homeowners to apply the credit toward personal income taxes, reducing the taxes paid to the federal government.
Utah also offers a state tax credit known as the Renewable Energy Systems Tax Credit. While this program is being phased out by 2024, you can still take advantage of it in 2021.
According to the Utah Office of Energy Development, the maximum tax credit in 2021 is $1,200. That number will drop to $800 in 2022 and $400 in 2023. Now is the perfect time to invest in solar!
Commercial projects can receive even more benefits from the state if they qualify. The Utah Renewable Energy Systems Tax Credit also allows for a tax credit of “10% of the eligible system cost or $50,000, whichever is less.”
The ITC is currently scheduled to drop to 22% in 2023 and zeroes out in 2024.
Solar panels need sunlight, and Utah has plenty
Solar power works best when the sun is out. Luckily, Utah gets plenty of sunlight. Salt Lake City currently has an average of 222 sunny days every year, which is above the national average. Meanwhile, St. George averages 255 sunny days each year.
Milford, UT even ranks as the 28th sunniest city in the country, according to NerdWallet, with Salt Lake City trailing in 42nd place.
The high amount of sunlight Utah gets enables your solar system to produce and store extra electricity for cloudy days when production is lower.
Solar panels are an extremely viable option for homeowners and businesses in Utah. With ample sunlight, the possibility of federal and state tax credits, increased property values, and the ability to save money on energy bills, solar panels are the way to go. Solar panels are worth it in Utah.
ES Solar is your go-to source for all things solar. Our solar panels and batteries are of the highest quality and efficiency in all of northern Utah. From Logan to the Salt Lake Valley and everywhere in between, we’ll install solar panels for your home or business.
Our certified contractors are readily available to eliminate your energy bill and install solar power for your home or business. As a local Utah business located in Layton, we provide fast, professional, and personable service.
Contact us at 801-614-0606 or use our secure form to get a quote. Save with solar power today, help our environment for tomorrow!
Article written by Chase Charaba.