Is solar worth it in Utah?
For a typical Utah home in 2026, solar is not worth it: about a 22.7-year payback and $1,316 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 22.7 yrs3.1 kW, paying cash
- Electricity price
- 13.3¢per kWh, U.S. 18.0¢
- Solar production
- 1,509kWh per kW per year
- Exports credited at
- ~32%Net billing (reduced export credit)
The numbers for a typical Utah home
| Electricity use | 773 kWh a month (Utah average) |
|---|---|
| Best-value system | 3.1 kW, producing 4,678 kWh a year (50% of use) |
| Price | $11,250 at about $3.00/W |
| First-year savings | $514 |
| Payback | 22.7 years |
| 25-year net | $1,316 (0.8% a year return) |
| Rate increase assumed | 1.8% a year, from Utah's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is cheap: 13.3¢ per kWh, 26% below the U.S. average (18.0¢), so each solar kWh saves less.
- Exported solar is typically credited at about 32% of retail, so systems pay best when sized for what you use yourself.
- A typical system here produces about 1,509 kWh per kW per year (ranked #11 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Utah
Net billing (reduced export credit). Rocky Mountain Power customers who installed solar after 2017 are on net billing: solar used in your home saves full retail, but every kWh exported earns a lower export credit, currently 4.86 c/kWh in summer and 4.03 c/kWh the rest of the year.
RMP Schedule 137 Export Credit Rate (effective 2026-03-01): 4.855 c/kWh Jun-Sep; 4.033 c/kWh Oct-May; updated annually.
- Netting: instantaneous
- Unused credits: Export credits are dollar credits that carry forward month to month; unused excess credits expire annually and their value goes to RMP's Energy Balancing Account (per 2021 PSC letter in Docket 21-035-46), not to the customer.
- System size limit: 25 kW
- Fixed charges: Standard residential customer charge; Schedule 137 customers may have a minimum bill/facility component - verify.
- Last major change: PSC Schedule 137 order (2020) replacing NEM; annual ECR update approved 2026-02-23 effective 2026-03-01 (Docket 26-035-T03).
- Pending: 2026 HB 367 (TOU export tariff, minimum floor) failed. Annual ECR updates continue.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Rocky Mountain Power (PacifiCorp) - Utah | 4.3¢/kWh | Schedule 137: 4.855 c summer / 4.033 c winter (from 2026-03-01). |
Solar incentives in Utah
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Rocky Mountain Power Wattsmart Battery program | battery incentive | Upfront incentive/bill credits for enrolling qualifying batteries in RMP's demand response program; amounts change - verify. Eligibility: RMP Utah customers with qualifying battery. | active |
Ended programs: Utah Renewable Energy Systems Tax Credit (RESTC).
What solar costs in Utah
A fair cash price is around $3.00 per watt before incentives. For the 3.1 kW system that fits a typical home, expect roughly $7,900 to $11,200; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 86,164
- Share of homes
- 6.7%
- Residential solar capacity
- 536 MW
- Growth over the past year
- +5.4%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Utah
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| PacifiCorp (Rocky Mountain Power / Pacific Power) | 969,037 | 14.7¢ | 816 kWh/mo | Not worth it |
| Provo City | 36,032 | 11.6¢ | 619 kWh/mo | Not worth it |
| City of St George | 28,681 | 12.0¢ | 927 kWh/mo | Not worth it |
| Dixie Escalante R E A | 28,410 | 9.5¢ | 1,309 kWh/mo | Not worth it |
| Lehi City Corporation | 28,051 | 10.3¢ | 831 kWh/mo | Not worth it |
| City of Logan | 19,879 | 13.3¢ | 504 kWh/mo | Not worth it |
| City of Murray | 17,724 | 12.7¢ | 597 kWh/mo | Not worth it |
| Spanish Fork City Corporation | 16,588 | 10.6¢ | 694 kWh/mo | Not worth it |
| City of Bountiful | 15,762 | 13.8¢ | 850 kWh/mo | Not worth it |
| Heber Light & Power | 13,903 | 14.7¢ | 820 kWh/mo | Not worth it |
| Moon Lake Electric Association | 13,441 | 9.6¢ | 964 kWh/mo | Not worth it |
| Garkane Energy Cooperative | 11,895 | 11.9¢ | 947 kWh/mo | Not worth it |
| City of Springville | 10,918 | 13.3¢ | 788 kWh/mo | Not worth it |
| Navajo Tribal Utility Authority | 1,807 | 16.6¢ | 501 kWh/mo | Close call |
| Empire Electric Association | 950 | 16.6¢ | 701 kWh/mo | Worth it |
| Wells Rural Electric | 508 | 10.4¢ | 1,019 kWh/mo | Not worth it |
| Mt Wheeler Power | 212 | 9.5¢ | 1,271 kWh/mo | Not worth it |
Solar by city in Utah
- Salt Lake City21-yr payback · Not worth it
- West Valley City20.8-yr payback · Not worth it
- West Jordan21-yr payback · Not worth it
- ProvoNo payback · Not worth it
- St. George19.4-yr payback · Not worth it
- Orem20.6-yr payback · Not worth it
- Sandy20.9-yr payback · Not worth it
- Ogden21-yr payback · Not worth it
- Lehi20.9-yr payback · Not worth it
- Layton21-yr payback · Not worth it
- South Jordan21-yr payback · Not worth it
- Millcreek21-yr payback · Not worth it
- Herriman21-yr payback · Not worth it
- Taylorsville20.9-yr payback · Not worth it
- Logan22-yr payback · Not worth it
- Eagle Mountain20.6-yr payback · Not worth it
- Draper20.9-yr payback · Not worth it
- Murray20.9-yr payback · Not worth it
- Saratoga Springs21-yr payback · Not worth it
- Riverton21-yr payback · Not worth it
- Bountiful21.9-yr payback · Not worth it
- Spanish Fork20.9-yr payback · Not worth it
- Roy20.7-yr payback · Not worth it
- Cedar City19.6-yr payback · Not worth it
- Tooele21-yr payback · Not worth it
- Pleasant Grove20.8-yr payback · Not worth it
- Kearns metro20.8-yr payback · Not worth it
- American Fork20.9-yr payback · Not worth it
- Midvale21.1-yr payback · Not worth it
- Springville20.9-yr payback · Not worth it
- Syracuse21-yr payback · Not worth it
- Clearfield21-yr payback · Not worth it
- Kaysville21.1-yr payback · Not worth it
- Cottonwood Heights21.3-yr payback · Not worth it
- Washington19.3-yr payback · Not worth it
- Holladay21.4-yr payback · Not worth it
- Magna metro20.8-yr payback · Not worth it
- South Salt Lake21-yr payback · Not worth it
- Farmington21.4-yr payback · Not worth it
Protect yourself when buying
- Check the license. Utah DOPL contractor license; S202 Solar Photovoltaic Contractor specialty classification (or electrical contractor). Look up an installer
- Cancellation rights. 3 business days to cancel many home-solicitation sales. Residential Solar Energy Disclosure Act (Utah Code 13-52): required disclosure statement; buyer can rescind within 3 business days. How to cancel
- HOA and solar access. Solar easements allowed; HOAs may adopt reasonable restrictions (limited protection).
- Community solar. Rocky Mountain Power Subscriber Solar (utility program).
Questions about solar in Utah
Is solar worth it in Utah in 2026?
For a typical Utah home, solar is not worth it. A 3.1 kW system costing about $11,250 after state incentives saves about $514 in the first year and pays back in about 22.7 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Utah?
A reasonable cash price is around $3.00 per watt before incentives, or roughly $7,900 to $11,200 for a 3.1 kW system.
Does Utah have net metering?
Rocky Mountain Power customers who installed solar after 2017 are on net billing: solar used in your home saves full retail, but every kWh exported earns a lower export credit, currently 4.86 c/kWh in summer and 4.03 c/kWh the rest of the year.
Is there a solar tax credit in Utah?
The 30% federal credit for homeowners ended for systems installed after 2025. Utah does not offer a state income tax credit for solar that we're aware of.
How do I check a solar installer's license in Utah?
Utah DOPL contractor license; S202 Solar Photovoltaic Contractor specialty classification (or electrical contractor).. Look up any installer with the state's license search at https://secure.utah.gov/llv/search/index.html.
Policy research current as of October 2026; sources include pscdocs.utah.gov, pscdocs.utah.gov, hub.utahcleanenergy.org. Electricity data: EIA, through July 2026. Found something out of date? Tell us.