Solar Panel Cost in Utah (2026 Estimate)

BySunMetricLab Editorial Team·Independent solar research and calculators

Data last updated September 10, 2026 · ranks #40 of 50 states for modeled payback

Utah averages about 5.3 peak sun hours a day (about average for the US) with an approximate residential electricity rate near 11¢/kWh, on the lower end nationally. In the model used here, an 8 kW system in Utah 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. That is a middle-of-the-pack payback, so whether solar is worth it in Utah often comes down to your specific rate, roof, and any state or utility incentives.

Estimated system cost and payback in Utah

Costs assume roughly $3.00/watt installed for Utah; the net column applies a 30% federal credit for comparison with quotes that include it. Savings and payback use the state's sun hours and rate above.

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.

What moves the numbers in Utah

Two inputs drive most of the difference between states: how much sun a system sees and what each offset kilowatt-hour is worth. Utah's 5.3 sun hours set production, and its roughly 11¢/kWh rate sets what that production saves. The bigger unknowns are your roof, shading, and how your utility compensates exported power, since a lower export rate can pull real savings below the retail-rate figure above.

Net metering and export credits in Utah

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.

Municipal utilities such as Provo, St. George, Logan, Murray, and Bountiful, along with cooperatives like Dixie Power and Moon Lake Electric, are not bound by the Rocky Mountain Power tariff and set their own rules; some still offer retail-style net metering, others have adopted their own export rates. Because compensation is meant to reflect the utility's value of exported power, self-consumption and battery storage carry more weight in Utah than in retail net metering states.

Utah solar incentives beyond the federal credit

Utah's residential Renewable Energy Systems Tax Credit once covered a quarter of system cost up to a capped amount, but the cap stepped down each year and the credit ended for systems installed after 2023, so it is no longer available for new installations. The state's sales tax exemption for renewable energy equipment is written for large generating facilities rather than rooftop arrays, so plan on paying sales tax unless your installer documents an exemption that applies.

Rocky Mountain Power's Wattsmart Battery program pays an upfront incentive and ongoing bill credits to customers who enroll a compatible home battery for utility dispatch, and it is the most substantial state-level offer as of 2026. Verify current terms directly with the utility, since program budgets are set annually.

Utilities and rate plans in Utah

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.