Is Solar Worth It in Utah in 2026?
Utah gets real sun — Salt Lake City averages roughly 1,461 kWh of production per installed kilowatt per year, at 40.4°N with around 238 sunny days a year. Solid production, on par with the Mountain West. The problem isn't the sun, it's the math: cheap electricity (about 13.1¢ per kWh, among the lower rates nationally), no federal tax credit, an expired state credit, and roughly half of retail paid for exported power. That combination — cheap power, weak buyback, no tax credit — is the hardest one for solar economics, and Utah has all three in 2026.
That doesn't mean solar never works here — the bar is just higher. A big south-facing roof, a high electric bill, and a system sized to your own usage rather than maximum export can still pencil out over 15 to 20 years. If an installer quotes a "6 to 8 year payback" in 2026, ask them to show their assumptions — that stopped being realistic once the federal credit disappeared.
Utah Electricity Prices — Climbing From a Low Base
Solar only pays off if the electricity you're not buying stays expensive enough, long enough, to justify the upfront cost. Utah's rate is genuinely low nationally, but "low" doesn't mean "flat." Here's the trend, from federal EIA data.
Full Utah electricity price data (1990–2025)
| Year | Utah (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 7.1 | 7.8 |
| 1991 | 7.1 | 8.0 |
| 1992 | 7.0 | 8.2 |
| 1993 | 6.9 | 8.3 |
| 1994 | 6.9 | 8.4 |
| 1995 | 6.9 | 8.4 |
| 1996 | 7.0 | 8.4 |
| 1997 | 6.9 | 8.4 |
| 1998 | 6.8 | 8.3 |
| 1999 | 6.3 | 8.2 |
| 2000 | 6.3 | 8.2 |
| 2001 | 6.7 | 8.6 |
| 2002 | 6.8 | 8.4 |
| 2003 | 6.9 | 8.7 |
| 2004 | 7.2 | 9.0 |
| 2005 | 7.5 | 9.5 |
| 2006 | 7.6 | 10.4 |
| 2007 | 8.2 | 10.7 |
| 2008 | 8.3 | 11.3 |
| 2009 | 8.5 | 11.5 |
| 2010 | 8.7 | 11.5 |
| 2011 | 9.0 | 11.7 |
| 2012 | 9.9 | 11.9 |
| 2013 | 10.4 | 12.1 |
| 2014 | 10.7 | 12.5 |
| 2015 | 10.9 | 12.7 |
| 2016 | 11.0 | 12.6 |
| 2017 | 11.0 | 12.9 |
| 2018 | 10.4 | 12.9 |
| 2019 | 10.4 | 13.0 |
| 2020 | 10.4 | 13.2 |
| 2021 | 10.4 | 13.7 |
| 2022 | 10.8 | 15.0 |
| 2023 | 11.2 | 16.0 |
| 2024 | 12.2 | 16.5 |
| 2025 * | 13.1 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Utah residential rates sit around 13.1¢ per kWh as of 2025 EIA preliminary figures — up about 74 percent since 2005, climbing roughly 1.9 percent a year over the last decade. A real, sustained increase from one of the cheapest markets in the country. The practical effect: your savings per kWh are smaller than a homeowner in California or Massachusetts would see, simply because you aren't paying much for that kWh to begin with. Rising rates help the case over time, but can't fully offset a starting price this low.
The Utah Sun, Month by Month
Panels respond to how high the sun sits and how long it stays up, not air temperature. At 40.4°N, Utah's sun angle swings hard between seasons — long, high summer days versus short, low-path winter ones — and snow cover can add a brief reflectivity boost or block panels entirely depending on how fast it sheds.
Utah monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 91 |
| Feb | 98 |
| Mar | 130 |
| Apr | 133 |
| May | 142 |
| Jun | 145 |
| Jul | 144 |
| Aug | 144 |
| Sep | 135 |
| Oct | 127 |
| Nov | 96 |
| Dec | 75 |
| Year | 1461 |
Source: NREL PVWatts typical-year estimate (Salt Lake City), per installed kW at latitude tilt.
Production is heavily loaded toward late spring through early fall, with a real trough in December and January. If your biggest expense is winter heating rather than summer cooling, panels produce least exactly when usage is highest — worth discussing with your installer before sizing around the annual total rather than the monthly pattern.
What Solar Costs in Utah in 2026
Most Utah residential installs run about $2.65 to $3.35 per watt, in line with or slightly below the national average. With the federal credit gone for owner-financed systems completed after 2025, this is close to your real net cost — the only thing coming off the top is the sales tax you don't pay (below).
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $13,250 to $16,750 | ~7,300 kWh/yr (~$80/mo at 13.1¢) | Smaller home, lower usage |
| 8 kW | $21,200 to $26,800 | ~11,700 kWh/yr (~$128/mo) | Average Utah home |
| 12 kW | $31,800 to $40,200 | ~17,500 kWh/yr (~$191/mo) | Large home, electric heat |
The sales tax exemption (below) helps at signing, but doesn't change the fundamental math: cheap electricity plus a below-retail export rate means Utah systems take longer to pay back per dollar spent than the same system in a high-rate state. Get at least three quotes and compare price per watt directly.
Estimate Your Utah Payback
The calculator below is set to Utah's average rate and Salt Lake City-area production. Enter your own monthly bill for an estimated system size, payback period, and 25-year savings. Utah rates have grown about 1.9 percent a year over the last decade — a reasonable starting point for the inflation assumption, though test it both higher and lower.
Utah Solar Incentives in 2026 — What's Actually Left
Separate what's gone from what survived.
- Gone — the 30 percent federal credit: The Residential Clean Energy Credit (25D) was repealed for installs completed after December 31, 2025, under the One Big Beautiful Bill Act. No phase-out, no exception for owned systems.
- Gone — the state tax credit: Utah's Renewable Energy Systems Tax Credit (RESTC) phased down for residential solar PV to $0 for systems installed in 2024 and beyond, per the state energy office. A 2025 bill (HB 264) extended the RESTC sunset for other technologies, but does not revive the residential solar credit.
- Still here — sales tax exemption: The Alternative Energy Sales Tax Exemption waives state sales tax on solar equipment and qualifying leases (7+ year terms), extended through June 30, 2027.
- Still here — property tax exclusion: Systems installed after December 31, 2011 don't add to your assessed home value. The annual mechanics are inconsistently sourced — some describe an ongoing exclusion via yearly filing, others a one-time benefit — confirm with your county assessor.
- Partially — leases and PPAs: Third-party-owned systems can still access a separate federal business credit (48E) through 2027, but it belongs to the leasing company, not you. Compare against a cash or loan purchase first.
- Storage, not solar: Rocky Mountain Power's battery incentive (roughly $400/kW upfront, capped near $2,000, plus ~$15/kW a year) rewards enrolling in its demand-response program — real money, but for the battery, not the panels.
Net Metering in Utah — Actually Net Billing for Almost Everyone
If you've heard Utah has net metering, the details matter more than the label. Rocky Mountain Power (RMP/PacifiCorp), the dominant utility, runs three programs depending on when you signed up: Schedule 135 is true 1:1 retail net metering, but closed — only customers who filed before November 15, 2017 keep it, grandfathered through January 1, 2036. Schedule 136, a transition program, closed to new applicants in October 2020. Install solar today and you land on Schedule 137, Net Billing Service — the one that matters.
Under Net Billing, you're credited an "Export Credit Rate" for every exported kWh, based on avoided cost rather than retail. That rate resets every March 1; recent figures run around 5.6¢/kWh in summer (June–September) and 4.7¢/kWh the rest of the year — roughly half of retail. Unused credits settle into an Energy Balancing Account at period-end rather than rolling forward, so exported power is worth meaningfully less than what it offsets. The Public Service Commission revisits this rate regularly (RMP has proposed cuts before) — confirm the current figure on RMP's live tariff before signing.
The upshot: size your system to cover what you use, not to maximize export. Self-consumed power is worth full retail value; oversized systems that sell the surplus at avoided cost leave money on the table versus a true net-metering state.
Utah's Solar Access Law Has a Catch
Utah's 2017 Solar Access law (SB 154, Utah Code §57-8a-701) caps how much an HOA can restrict rooftop solar — a rule change or added cost is limited to 5 percent of system production or cost. Strong protection, for many homeowners. But there's a carve-out that trips people up constantly: it only protects detached single-family homes where the HOA doesn't own the roof, and it grandfathers any HOA with solar rules already on the books before January 2017. Own a condo or townhome, or live in an older subdivision? You may have weaker solar rights than a neighbor in a newer detached-home community nearby. Check your HOA's covenants and their adoption date before assuming you're covered — legislative interest in revisiting HOA solar rules recurs (a 2025 House bill among them), so check the current session too.
How to Go Solar in Utah
Work through these before signing anything.
- Pull your last 12 power bills for a true average — Utah's winter heating and summer cooling loads can differ sharply.
- Confirm your roof faces south, east, or west with minimal shading; north-facing roofs rarely pay off anywhere, especially at Utah's rates.
- Ask your installer to size the system to your own usage, not to maximize export — Schedule 137's below-retail buyback makes oversizing a weaker bet here than in a true net-metering state.
- Get at least three quotes, confirm none assume a federal or state credit that no longer applies, and compare price per watt directly.
- Ask RMP for the current Schedule 137 Export Credit Rate before signing — it resets every March 1 and has been proposed for cuts.
- If you're in an HOA, check your covenants and their adoption date against the January 2017 cutoff in the state Solar Access law before assuming you're protected.
For the full picture of how panels work, sizing, and buying versus leasing, read our main solar panels guide — this page focuses on what's specific to Utah.
Solar also touches your home's electrical system — your installer coordinates the interconnection with your panel and meter. Our electrical guide covers what a modern panel needs to support, solar included.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 preliminary). Production: NREL PVWatts. Net metering programs: EnergySage — Rocky Mountain Power net metering. Net billing tariff: Rocky Mountain Power — Customer Generation and Utility Dive. State tax credit history: Utah Office of Energy Development — RESTC. Sales tax exemption: DSIRE. Property tax exclusion: DSIRE. Solar Access law: Utah Code §57-8a-701. Reviewed every six months.