Solar Panel Cost in Salt Lake City, UT (2026 Estimate)
BySunMetricLab Editorial TeamIndependent solar research and calculators
Data last updated
Salt Lake City averages about 5.3 peak sun hours a day (about average for the US, matching the Utah statewide average), and pairs with Utah's approximate residential rate near 11ยข/kWh. In the model used here, an 8 kW system produces roughly 12,380 kWh a year and trims about $1,400 off annual electricity costs, paying back its net cost in about 12.3 years . Local shading, roof, and your utility's export terms move the real figure.
Estimated system cost and payback in Salt Lake City
Costs assume roughly $3.00/watt installed; the net column applies a 30% federal credit for comparison with quotes that include it. Savings use Salt Lake City's sun hours and Utah's rate.
| System size | Gross cost | Net after 30% credit | Yearly production | Yearly savings | Payback |
|---|---|---|---|---|---|
| 6 kW | $18,000 | $12,600 | 9,290 kWh | $1,000 | 12.3 yrs |
| 8 kW | $24,000 | $16,800 | 12,380 kWh | $1,400 | 12.3 yrs |
| 10 kW | $30,000 | $21,000 | 15,480 kWh | $1,700 | 12.3 yrs |
The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.
Net metering and utilities around Salt Lake City
Rocky Mountain Power closed traditional net metering to new customers in late 2017 and, after a transition period, moved to a net billing structure approved by the Public Service Commission in a 2020 settlement. Under net billing your imports and exports are netted over short intervals rather than a full month, and exported energy earns an export credit that is set well below the retail rate, with different values for summer and winter and for on-peak and off-peak hours. Unused credits roll forward but are cleared once a year, and the export rate itself can be adjusted in future commission proceedings.
Rocky Mountain Power, part of PacifiCorp, serves roughly four out of five Utahns including Salt Lake City, Ogden, and most of the Wasatch Front. Provo Power, St. George Energy Services, Logan Light and Power, Murray City Power, and other municipal systems supplied through UAMPS cover many cities, with Dixie Power, Moon Lake Electric, and Garkane Energy serving rural areas. Residential rates are among the lowest in the West, and Rocky Mountain Power uses seasonal tiered pricing with an optional time-of-use rate that shifts value toward late-afternoon and evening hours. Low rates plus below-retail export credits mean payback here depends on abundant sun and careful system sizing more than on the tariff.
For the full state picture, including incentives, property and sales tax treatment and the complete net metering notes, see the Utah solar cost page.
Sources and methodology
Every figure on this page is computed from two published inputs (average peak sun hours and the state's average residential electricity rate) plus the documented assumptions on the methodology page. It is a transparent model, not a survey of installer quotes. Inputs last reviewed .
- Utah Public Service Commission
- Rocky Mountain Power
- U.S. Energy Information Administration (EIA), average residential electricity price by state · basis for the rounded state electricity rates
- NREL National Solar Radiation Database and PVWatts · basis for the average daily peak sun hours
- NREL solar resource maps · regional irradiance context
- DSIRE (Database of State Incentives for Renewables and Efficiency) · state and utility incentives, net metering rules
- IRS, Residential Clean Energy Credit · 30% federal credit applied in the net-cost figures