1. How does solar benefit Utah?
2. What are other states doing to support solar?
3. How can policy makers support increased solar development?

1. How does solar benefit Utah?
Solar technologies can make a significant contribution to Utah's economy and energy portfolio. 

Utility-scale solar plants are becoming increasingly common across the U.S., especially in the Southwest, where sunshine and land are abundant.  These large solar power plants help diversify the energy supply, while creating local jobs and stimulating local investments and economic development.  Smaller scale residential (or distributed) solar provides unique benefits to homeowners, businesses, and utilities as demand and energy prices continue to rise.

Local and state policymakers are in a unique position to remove both regulatory and market barriers to help residents and business use solar development to meet their energy demands and contribute to a strong local economy.

Learn more about Utah's solar potential and the benefits of solar.  

2. What are other states doing to support solar?

New Jersey - With over 3100 solar PV systems installed, New Jersey is second only to California in solar panels installed. New Jersey’s favorable net metering and interconnection rules have allowed for this impressive solar push by allowing PV systems to connect to the grid and be compensated for their contribution of clean, emission-free electricity.

The New Jersey Clean Energy Program, administered by the NJ Board of Public Utilities, has provided over $227 million dollars from May 2001 – June 2008 to promote solar energy through PV installation rebates. These rebates have provided up to 50 percent or more of the installation costs to PV installers, helping interested homeowners relieve stress from the state’s power load.
New Jersey recognized the importance of providing these rebates to PV installers as a way to develop the solar energy market but also realized that the cost to achieve the 2.12 % solar RPS requirement by 2021 with these rebates would be almost $10 billion dollars. The NJ Board of Public Utilities decided in September of 2007 to move the state towards a market-based Solar Financing Program. New Jersey will phase out rebates by 2012 and rely on Solar Renewable Energy Credits (SRECs) and a Solar REC-based financing to spur private investment and market development for solar technologies. An SREC is issued to a solar facility for each 1000kWh (1 MWh) of solar energy it generates which can be bought or sold separately from the electricity, thus providing the PV system owner with a source of revenue to help offset the cost of the system installation.

New Mexico - New Mexico state government has taken aggressive action to develop solar by providing homeowners and corporations with incentives to develop solar capacity.  In 2006 New Mexico established a 30% personal income tax credit (up to $9,000) for residents and businesses (non-corporate) who purchase and install certified photovoltaic (PV) and solar thermal systems. Eligible systems include grid-tied commercial PV systems, off-grid and grid-tied residential PV systems, and (active) solar hot water or hot air systems.  New Mexico also offers corporate incentives for solar development. Corporations that generate electricity from solar energy receive a tax incentive that provides an average of 2.7¢/kWh annually over ten years.

Oregon - Perhaps the most comprehensive of state-offered incentive programs is Oregon’s Business Energy Tax Credit which provides Commercial, Industrial, Construction, Multi-Family Residential, Equipment manufacturers a tax rebate incentive of 50% distributed over five years (10% per year) with a maximum credit of $20 million for renewable energy equipment manufacturing facilities and $10 million for other projects.

Oregon also offers robust residential credits. Photovoltaic systems are eligible for $3 per peak watt with a maximum limit of $6,000, up to 50% of the installed cost. However, the amount claimed in any one tax year may not exceed $1,500 or the taxpayer's tax liability, whichever is less. Unused credits may be carried forward for five years.  Solar space and water heating systems, and wind-powered mechanical systems are eligible for a credit of 60 cents per kWh saved during the first year, up to $1,500. Spa and pool heating systems are eligible for a tax credit of 15 cents per kWh saved, up to 50 percent of the cost, with a maximum tax credit of $1,500.

To learn more about other innovative solar policies, visit the Database of State Incentives for Renewables and Efficiency.

3. How can policy makers support increased solar development?
State and local governments can support increased solar development through policy measures that remove market and institutional barriers to solar adoption; some important policy measures include: 

• Adoption of favorable solar codes/access
• Solar incentives (such as feed-in tariffs, rebates, and tax credits)
• Innovative financing mechanisms (such as Property Assessed Clean Energy Bonds)
• Removing regulatory barriers to Third-party financing and power purchase agreements
  
  LEARN MORE
• For a list of important policies to support solar, visit the Solar Alliance
• For model net metering and interconnection policies, visit the Interstate Renewable Energy Council
• Learn About the U.S. Department of Energy Solar America Cities Program
• Learn About Solar Salt Lake - A US DOE Solar America Cities Project
• Learn More about Solar Salt Lake Phase II