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Utah

An arrow graphic shows that Utah's voluntary renewable portfolio goal is set at 25% in 2025.

Carve-out: None (solar multiplier applied)
Tracking system: Western Energy Generation Information System (WEGIS)

Utah's renewable portfolio standard (RPS) is not compulsory, indicating each investor-owned utility (IOU), municipal utility, and electric cooperatives should pursue renewable energy if "cost-effective". Utilities are required to report their progress to meet the target for retail sales every five years until 2025. A multiplier of 2.4 is credited to solar generation for compliance purposes.

Utah does not have a compulsory RPS. However, renewable energy certificates (RECs) generated in Utah can be used to fulfill utilities' targets, be sold to other states, or participate in the voluntary REC market. Utah's net metering program extends to 2 MW and has a high aggregate capacity limit. Various state tax incentives can be utilized to supplement the federal tax incentives.

Net Metering

Net metering is available to customers of IOU Rocky Mountain Power and electric cooperatives in Utah. Municipal utilities may offer separate net metering programs.

Net-metered solar PV customers are not exempt from utility minimum bill charges for all customers. The Commission has the authority to determine whether any new rate structure, charge, or credit is warranted based on cost-benefit assessment.

System size limit: 20 kW for residential; 2 MW for non-residential

Aggregate cap: 20% of utility's peak demand in 2007

Credit: Net excess generation is credited at the retail rate for residential and small commercial customers; large commercial and industrial customers with demand charge may choose between valuing net excess generation at the avoided cost rate or at an alternative rate based on utility revenue and sales.

RECs: Customers retain ownership of RECs.

Meter aggregation: Meter aggregation is allowed for customer with multiple meters at one location or adjacent locations.

Interconnection

Utah adopted rules for interconnection applicable to small generators for IOU and electric cooperatives over which the Public Service Commission (PSC) has jurisdiction.

Eligible Systems Type of Interconnection
Inverter-based system ≤25 kW Level 1 (approve or deny within 15 days after application completion)
≤2 MW and does not qualify for Level 1 interconnection Level 2 (approve or deny within 15 days after application completion; may need supplemental review)
>2 MW and ≤20 MW Level 3 (may need scoping meeting, feasibility study, and/or system impact study at customer's cost)

System size limit: 20 MW

Liability insurance: Additional liability insurance not required for systems ≤2 MW; insurance requirements at utility's discretion for systems >2 MW.

External disconnect switch: Required for all systems that are not inverter-based systems ≤10 kW.

Third Party Ownership

Third party power purchase agreements are allowed in Utah.

Community Solar

Utah allows aggregate net metering. There is currently no statewide solar program, but numerous solar projects have been built.

State Incentive Programs

Program Administrator Incentive

Renewable Energy Systems Investment Tax Credit

Governor's Office of Energy Development

Tax credit of up to $2,000 (or 25% of system cost) for residential taxpayers; $50,000 (or 10% of system cost) for commercial taxpayers.

Renewable Energy systems Production Tax Credit

Governor's Office of Energy Development

Renewable energy systems ≥660 kW are eligible to receive $.0035/kWh of electricity produced for the first 48 months after project commissioning.

Systems between 660 kW to 2 MW can choose between the Utah production tax credit and investment tax credit.

Alternative Energy Sales Tax Exemption

Utah State Tax Commission

Commercial, industrial, and utility tax payers are exempt from 100% of state sales and use tax for the purchase or lease of renewable energy generation equipment that increases the generation capacity of the property by ≥1 MW.

Utility Incentive Programs

Utility Incentive Limitations

Rocky Mountain Power Utah Solar Incentive Program

Rebate of $0.65/W after installation for large nonresidential net-metered systems. Smaller systems receive more rebate per watt.

$700,000 maximum incentive for large nonresidential systems >25 kW and ≤2 MW

Resources

The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.

Renewable Portfolio Standard

Net metering and Interconnection

Community Solar

Others