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Utah · UT

Solar Panels in Utah:
Is It Worth It in 2026?

Utah averages 1520.3 kWh per kWp per year with 5.9 peak sun hours per day. At 12.88¢/kWh, an 8 kW system saves roughly $1,567/year and pays back in about 9.7 years.

Utah Solar at a Glance

Peak sun hours / day5.9 hrs
Avg solar yield1520.3 kWh/kWp/yr
Electricity rate12.88¢ / kWh
Avg payback (8 kW)9.7 years
Annual savings (8 kW)$1,567/yr
Net meteringFull retail net metering ✓

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in Utah

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

25% state tax credit (up to $400/year, carryforward allowed), Rocky Mountain Power net metering

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Property value increase is tax-exempt.

All Available Incentives in Utah

Federal ITC (Section 25D)Expired December 31, 2025 — no longer available for residential cash/loan
Property Tax ExemptionSolar-added home value not taxed
Net MeteringFull retail net metering ✓
Personalized estimate

Enter your monthly bill — get exact payback numbers for Utah.

Calculator
All Utah incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in Utah: Frequently Asked Questions

Is solar worth it in Utah?
For many homeowners, yes — though payback is longer than average in Utah. Low electricity rates (12.88¢/kWh) extend payback to 9.7 years. But the 25-year savings (~$28,832) still significantly exceed system costs, and electricity prices will likely rise. Utah's 25% state tax credit (up to $1,600) plus net metering and the federal ITC make it a top-tier solar state. Excellent yield from the high desert climate.
What solar incentives are available in Utah?
Utah homeowners can stack multiple incentives: the state solar incentives (federal ITC expired Dec 2025) (ITC) — $6,480 on a typical 8 kW system; a property tax exemption (solar-added home value not taxed); and net metering through Rocky Mountain Power. Utah's 25% state tax credit (up to $1,600) plus net metering and the federal ITC make it a top-tier solar state. Excellent yield from the high desert climate.
How much electricity do solar panels produce in Utah?
Utah averages 1520.3 kWh per kWp of solar per year — 1% above the US average. An 8 kW system produces roughly 12,162 kWh/year, with a monthly average of 126.7 kWh/kWp. Output varies by location: southern Utah produces more than the north.
How much do solar panels cost in Utah?
The average 8 kW system in Utah costs approximately $21,600.0 before incentives. After the 30% federal ITC ($6,480), your net cost is around $15,120. Prices range from $2.40–$3.20/watt installed depending on installer, panel brand, and excellent sun, minimal cloud cover — one of the best solar climates in the US.

Going Solar in Utah: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in Utah. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in Utah average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 12.88¢/kWh in Utah, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    Utah does not have a statewide solar tax credit, but utility rebates and net metering may still apply. 25% state tax credit (up to $400/year.

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in Utah typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for Utah: Utah averages 1520.3 kWh/kWp/year with 5.9 peak sun hours/day. Electricity costs 12.88¢/kWh. An 8 kW solar system saves ~$1,567/year and pays back in 9.7 years. 25% state tax credit (up to $400/year, carryforward allowed), Rocky Mountain Power net metering.