Typical home: Not worth it

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 use773 kWh a month (Utah average)
Best-value system3.1 kW, producing 4,678 kWh a year (50% of use)
Price$11,250 at about $3.00/W
First-year savings$514
Payback22.7 years
25-year net$1,316 (0.8% a year return)
Rate increase assumed1.8% 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.
Watch out for leases right now. Lease and PPA providers can still claim a federal credit that homeowners can't, so they're being pushed hard. Compare any lease against buying with our lease vs. buy calculator.

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.

Rules by utility
UtilityExport creditNotes
Rocky Mountain Power (PacifiCorp) - Utah4.3¢/kWhSchedule 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.

ProgramTypeWhat you getStatus
Rocky Mountain Power Wattsmart Battery programbattery incentiveUpfront 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.

Solar costs in every state · What's a good price per watt?

Average residential electricity price in Utah (¢/kWh)

EIA annual averages. Prices rose 1.8% a year from 2015 to 2025; Utah ranks #47 of 51 for price. Last 12 months through July 2026: 13.3¢.

Show as a table
PeriodValue
'129.9
'1310.4
'1410.7
'1510.9
'1611.0
'1710.9
'1810.4
'1910.4
'2010.4
'2110.4
'2210.8
'2311.2
'2412.2
'2513.0
Monthly production per kW of solar in Utah

kWh per kW for a south-facing roof at a 20° tilt, population-weighted across 39 cities (PVWatts, NLR). Total 1,509 kWh a year.

Show as a table
PeriodValue
Jan82
Feb89
Mar130
Apr143
May161
Jun165
Jul165
Aug156
Sep140
Oct122
Nov87
Dec70

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

UtilityHomes servedPrice (2026 est.)Typical useTypical-home verdict
PacifiCorp (Rocky Mountain Power / Pacific Power)969,03714.7¢816 kWh/moNot worth it
Provo City36,03211.6¢619 kWh/moNot worth it
City of St George28,68112.0¢927 kWh/moNot worth it
Dixie Escalante R E A28,4109.5¢1,309 kWh/moNot worth it
Lehi City Corporation28,05110.3¢831 kWh/moNot worth it
City of Logan19,87913.3¢504 kWh/moNot worth it
City of Murray17,72412.7¢597 kWh/moNot worth it
Spanish Fork City Corporation16,58810.6¢694 kWh/moNot worth it
City of Bountiful15,76213.8¢850 kWh/moNot worth it
Heber Light & Power13,90314.7¢820 kWh/moNot worth it
Moon Lake Electric Association13,4419.6¢964 kWh/moNot worth it
Garkane Energy Cooperative11,89511.9¢947 kWh/moNot worth it
City of Springville10,91813.3¢788 kWh/moNot worth it
Navajo Tribal Utility Authority1,80716.6¢501 kWh/moClose call
Empire Electric Association95016.6¢701 kWh/moWorth it
Wells Rural Electric50810.4¢1,019 kWh/moNot worth it
Mt Wheeler Power2129.5¢1,271 kWh/moNot worth it

Solar by city in Utah

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).
More about solar in UtahLow retail (~12 c) with ~4 c export: maximize self-consumption; batteries help. Federal 25D residential clean energy credit is NOT available for homeowner-owned systems placed in service after 2025-12-31 (OBBBA, July 2025); third-party-owned (lease/PPA) systems may still benefit indirectly via 48E through 2027. EPA tried to end Solar for All grants in August 2025, but federal courts set that aside in September 2026; check whether your state's program has resumed.

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.