If you own or manage a business in Utah, you have probably heard other owners talk about going solar. Maybe you like the idea but are not sure it pencils out for a company your size, or you have heard that the tax incentives have changed. This guide walks through how commercial solar works, what affects the return, and what to know about incentives in 2026, without hype or made-up numbers.
Solar Is Not Just for Big Corporations
Commercial solar used to be associated with large corporate campuses. Today, small and mid-sized businesses install it too: retail shops, offices, warehouses, manufacturers, farms, churches, and multifamily properties. Commercial systems can be mounted on flat or pitched roofs, built as shaded carports over a parking lot, or installed on open land. Utah’s sunny climate helps, and so does the fact that most businesses use the most electricity during daylight hours, which is exactly when solar produces.
How Commercial Solar Lowers Costs
- Lower energy purchases. Every kilowatt-hour your panels produce and you use on site is one you do not buy from the utility.
- More predictable costs. Once the system is paid for, the energy it produces is not exposed to future utility rate changes.
- Credit for exports. Under Rocky Mountain Power Schedule 137, power you send back to the grid earns a bill credit. Export credit rates are updated each year and are generally lower than retail rates, so systems are usually sized to match on-site use.
- Possible demand savings. Depending on your rate schedule and load profile, solar paired with battery storage may help manage demand charges. This needs a site-specific analysis.
What Affects the Return on a Commercial System
Every business is different, so we do not quote generic savings figures. The factors that matter most are:
- How much electricity you use, and when you use it during the day.
- Your Rocky Mountain Power rate schedule, including any demand charges.
- Available roof, carport, or ground space, plus shading and orientation.
- Roof age and structure. It is often smart to re-roof before installing solar.
- Equipment choices, system size, and whether storage is included.
- How you pay for it (cash, loan, or lease) and which incentives you qualify for.
Commercial Solar Tax Credits Are Still Available in 2026
The homeowner credit (Section 25D) ended for expenditures after December 31, 2025, according to the IRS. Business-owned solar still qualifies for the Section 48E Clean Electricity Investment Credit. The base credit is 6%. It rises to 30% for projects that meet prevailing wage and apprenticeship requirements or are under 1 MW (AC), and bonus amounts may be available for domestic content or energy community projects.
Deadline: under the One Big Beautiful Bill Act (Public Law 119-21, §70513), which amended IRC §48E, solar projects that begin construction after July 4, 2026 must be placed in service by December 31, 2027. Projects that began construction by July 4, 2026 generally have a longer window. Projects starting in 2026 or later also have to follow new foreign-entity (FEOC) equipment sourcing rules. For the full breakdown, see our guide to commercial solar tax credits and incentives in Utah.
Accelerated depreciation and other incentives
- Utah commercial tax credit: refundable, 10% of eligible cost up to $50,000, for systems placed in service before January 1, 2028 (Utah Office of Energy Development).
- Accelerated depreciation: solar property that qualifies for the 48E credit is 5-year MACRS property under IRC §168(e)(3)(B). 100% bonus depreciation is permanent for property acquired after January 19, 2025 (One Big Beautiful Bill Act §70301; IRS Notice 2026-11). Depreciable basis is reduced by half of the credit (IRC §50(c)(3)). Ask your CPA how it applies to you.
- USDA REAP: USDA is not accepting REAP grant applications right now, but rural businesses and agricultural producers can still apply for guaranteed loans.
This is general information, not tax or accounting advice. Consult your CPA or a qualified tax professional before counting on any credit or deduction.
Benefits Beyond the Utility Bill
- Sustainability goals. Customers, tenants, and employees increasingly notice environmental commitments.
- Resilience. With battery storage, critical equipment can keep running during an outage.
- Long service life. Panels have no moving parts and need little routine maintenance.
Questions to Ask Before You Commit
- How long do we plan to own or occupy this building?
- Does the roof need work in the next several years?
- What does our 12-month usage and demand history look like?
- Is backup power important for our operations?
- What is our timeline relative to federal incentive deadlines?
Commercial Solar With a Local Installer
We have installed residential, commercial, and utility-scale systems across Utah since 2010. Learn more on our services page, read things to consider before investing in solar, or check our FAQ.
Talk to a Local Utah Solar Team
Rocky Mountain Renewable Energy has been designing and installing solar systems for Utah homes and businesses since 2010, from our office at 778 Parkway Dr in North Salt Lake. If you would like straight answers for your own property, request a free quote or call us at 801-980-0700.