This psalm is a part of daily prayer. It is recited before the Pesukei dezimra, a section of the Shacharit prayer. It was introduced as part of the daily prayer during the 17th century. The purpose of this was to dedicate the morning temple service.
Psalm 30 is also considered the psalm for the day of Hanukkah.
^Henry, Matthew (2005) [1708–10]. Matthew Henry's Commentary on the Whole Bible. Alban Books. ISBN1-56563-778-X. It was the laudable practice of the pious Jews, and, though not expressly appointed, yet allowed and accepted, when they had built a new house, to dedicate it to God, Deut. xx. 5. David did so when his house was built, and he took possession of it (2 Sam. v. 11); for royal palaces do as much need God's protection, and are as much bound to be at his service, as ordinary houses.