How to Claim Solar Energy Credit in Utah

Solar energy is a renewable form of energy that can replace traditional hydroelectric and thermal energy forms. Areas that receive generous amounts of sunlight can tap this energy by installing suitable solar panels. What’s more, residents of states such as Utah in the US will be able to claim state and federal Utah solar rebates here.

Steps to Claiming Solar Credit in Utah

Here is a detailed description of the process to be followed for receiving Utah solar incentives:  

1. Get a solar energy system installed at home – Apart from the lower power bill, the excess energy produced can be directed to the local grid through an agreement with the local utility company. Professional solar system installers must be contacted for this job. The state of Utah has a mandate that 20% of its energy ought to be produced through renewable sources by 2025. Feed-in tariffs and net meters can be used to interconnect residential solar systems.

2. Start an account with the Governor’s Office of Energy Development (OED) – Hiring a reputed solar systems installer makes this process easy. Not only will they be able to take care of all maintenance issues, but they will also handle the steps here.

3. Fill up the given solar PV application – Many documents have to be submitted to complete the PV application. The list of documents to be given here includes the following:

  • Invoice for installation of solar PV system
  • Photos of solar PV system
  • Interconnection and closure letter or Net Metering agreement
  • Schematic diagram of solar PV system

Since 15th August 2018, a $15 check needs to be sent for all solar PV applications. They need to be made to the Governor’s OED, as per Utah Code 63M-4-401.

4. Ensure that the received TC-40E form is saved – Upon completion of the above application, an email from the OED will be sent to the applicant. This tells the expected response time, which would be from certain days to 6 weeks. It would be best to send out the application before tax season, or else delays may occur. After approval, the applicant will get a completed version of the TC-40E with a stamp of certification.    

5. Claim the credit that comes under Renewable Residential/Commercial Energy System – While filing taxes, this is a credit that appears similar to the one that is not meant to be used. Code 21 on Utah’s TC-40A Part 4 is used to claim the credit.  

6. In case of an audit, information on the TC-40E would have to be verified – There is no need to submit the TC-40E from the OED while filing taxes, but it will be necessary for an audit. The document is very suitable for a tax accountant.

Value of the Tax Credit

Up to the year 2021, the RESTC (Renewable Energy Systems Tax Credit) program gives solar panels Utah incentives up to 25% of the total value of $1600, whichever is lesser. This tax credit may be claimed for additional systems in the subsequent years. However, this credit will go down by $400 every year till it expires. This RESTC program will get over by 2025.

Collect the tax credit while filing for state income taxes. It is treated as a non-refundable reduction of tax liability, which means that excesses will not be paid in cash. In case of the tax credit is greater than the owed amount of tax, the remaining amount can always be used in the following years, till four years after filing.

Once the state taxes are filed, individuals can get the Renewable Residential Energy Systems Credit: Code 21. Residential individuals must remember not to choose Qualifying Solar Project Credit.   

Benefits to the Environment

Only information about the credit system has been described thus far in this write-up, but the actual reason to use solar and other forms of renewable energy is something else. As solar panels are used only to capture energy directly from the sun, these do not pollute the environment in any way. There is no question of solar energy ending anytime soon as well, which means that humans do not have to worry about limited sources. Lowered electricity bills are the greatest incentives for most people.

Now is the time for all countries around the world to put comprehensive and long-term programs into place for harvesting solar energy. Technology will need to evolve with time, just like we see now that electric cars do not still perform quite as well as gasoline-powered vehicles. There is a lot of scope for making solar technology more affordable in different parts of the world.

Research Thoroughly

Research well to find the best solar energy systems installer in Utah. Direct references are always more accurate in such cases. Conversion to solar energy systems may seem cumbersome at first, but it will definitely be rewarding in the long run.  

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