Solar Panels in Utah (2026 Guide)

Q: Does Utah have a solar tax credit?

No. Utah's residential solar tax credit phased out and reached $0 for systems installed after December 31, 2023. The federal credit also expired December 31, 2025.

Q: What does Rocky Mountain Power pay for exported solar?

Utah uses net billing. As of March 2026, exported energy earns about 4.9 cents per kWh in summer and 4.0 cents in winter — roughly a third of retail — so self-consumption and batteries matter.

Q: Is solar still worth it in Utah?

It can be, but it's a longer-payback, energy-independence play now. Cheap installs and great sun help; low rates, no credits, and low export pay don't. Design the system for self-use.

Q: Should I add a battery in Utah?

Often yes. Because exported power earns so little, storing your solar to use at night usually beats selling it back for a few cents.

Utah gets some of the best sunshine in the country, and installs are cheaper than most states. But the value case changed in 2026: the state tax credit is gone, electricity is cheap, and the utility now pays very little for the power you send back. This guide gives you the honest math — where solar still makes sense in Utah, and why how you design the system matters more than ever.

Want your exact Utah numbers? Get a free, no-obligation solar quote →

How Much Do Solar Panels Cost in Utah?

Utah is a relatively low-cost market — about $2.65 per watt before incentives. For a typical home system:

5 kW system: ~$13,250
10 kW system: ~$26,500

Your real price depends on your roof and installer. See our 2026 solar cost breakdown.

Utah Solar Incentives in 2026

No federal tax credit in 2026

The 30% federal residential solar tax credit expired December 31, 2025 and is not available in 2026. Many older guides still list it — it's gone. See our 2026 tax credit guide.

No state solar tax credit anymore

Utah's residential solar tax credit phased down over several years and reached $0 for systems installed after December 31, 2023. For 2026 buyers, there is no Utah state solar tax credit. We want to be straight about that, because plenty of outdated pages still mention it.

Sales tax exemption

Utah exempts solar equipment from state sales tax, which trims your upfront cost. Your installer typically applies it at purchase.

Property tax

Solar's added home value may be exempt from added property tax in Utah, but treatment varies by county. Check with your county assessor rather than assuming a fixed exemption.

Low-income programs

Utah's federally funded "Solar for All" award was terminated in 2025, so it is not an available program in 2026. We'll update this if a new low-income program launches.

What You Get for Exported Power (Net Billing)

This is the most important number in Utah, and it's why design matters. Utah is net billing, not full retail net metering. New solar customers on Rocky Mountain Power are credited for exported energy at a low "Export Credit" rate — effective March 1, 2026, about 4.9¢/kWh in summer and 4.0¢/kWh in winter, roughly a third of the retail rate. The rate resets each March and has been trending down.

Plain version: the power you use the moment you make it offsets your bill at full value, but the surplus you send to the grid earns only ~4–5¢. That makes two things important in Utah:

Size the system to your own usage so you use more of what you produce.
Batteries make more sense here — storing your solar to use later beats exporting it for a few cents. See our solar + battery guide.

Major Utah Utility

Almost all Utah homeowners are served by Rocky Mountain Power. Utah's residential electricity rates are low — around 11–14¢ per kWh, roughly 20–35% below the national average. Cheap power is great day to day, but it means each kWh your panels offset saves less, which lengthens your payback compared with high-rate states.

Is Solar Worth It in Utah in 2026?

It's a tougher value case than it was a couple of years ago, and we'd rather be honest than oversell it. The headwinds: no federal credit, no state credit, low electricity rates, and a low export credit. The tailwinds: excellent sunshine, cheap installs, and a sales-tax exemption. The verdict: solar can still pay off in Utah, but it's now a long-term, energy-independence play rather than a fast-payback one — and it works best when the system is sized for self-consumption and paired with a battery. If you're chasing a quick return off an already-low power bill, set expectations accordingly. A custom quote for your usage shows your real numbers.

Frequently Asked Questions

How much do solar panels cost in Utah in 2026?
About $2.65 per watt before incentives — roughly $13,250 for 5 kW and $26,500 for 10 kW.

Does Utah have a solar tax credit?
No. It phased to $0 for systems installed after December 31, 2023. The federal credit also expired December 31, 2025.

What does Rocky Mountain Power pay for exported solar?
Utah uses net billing — about 4.9¢/kWh summer and 4.0¢/kWh winter as of March 2026, roughly a third of retail.

Is solar still worth it in Utah?
It can be, but as a longer-payback, energy-independence play. Cheap installs and great sun help; low rates and low export pay don't.

Should I add a battery in Utah?
Often yes — because exports earn so little, storing solar to use at night usually beats selling it back.

Sources

State credit phase-out: Utah Office of Energy Development. Net billing / export credit: Utah PSC, EnergySage. Costs & rates: EnergySage, EIA. Federal credit expiration: IRS OBBB guidance.