Is solar worth it in Utah?
At Utah’s average rate of 13.3¢/kWh and about 1500 kWh per kW of panels a year, a typical home pays back its system in roughly 21.1 years on electricity savings alone — no federal credit, which ended for buyers at the end of 2025 — then keeps saving. Run your own numbers below.
Sources: EIA · NREL · IRS. No federal credit — it ended 31 Dec 2025.
Independent estimate for guidance only — not a quote or advice. Great sun, but low rates and reduced export credits stretch payback.
What drives solar payback in Utah
Utah homeowners pay about 13.3¢/kWh, which is 5.1¢ below the national average. A rooftop here generates roughly 1500 kWh per kW each year — better than the typical US figure. On exports, Utah offers partial / below-retail export credit: Great sun, but low rates and reduced export credits stretch payback.
Utah electricity price trend
Average residential rate, monthly, May 2023 – Apr 2026. Up 23% over the period.
Source: U.S. Energy Information Administration (EIA), Electric Power Monthly · range 10.84–14.12¢/kWh
A worked example
For a Utah home with a $116/month power bill (typical household usage at Utah’s rate):
That nets out to a payback of about 21.1 years — shorter than simply dividing net cost by year-one savings, because power prices climb ~2.5%/yr so your savings grow each year. Year-one savings already reflect Utah’s below-retail export rate (you save full value on the power you use as it’s made, less on what you export), which is why they’re lower than the bill. Assumes 3.00 $/W installed before incentives and a typical 40% self-consumption; your actual cost, roof and usage will differ — adjust the calculator above.
Who supplies your power in Utah
Rocky Mountain Power, a PacifiCorp subsidiary, is the dominant investor-owned utility and serves the large majority of Utah homes (roughly a million customers) along the Wasatch Front and beyond — so its rules shape solar economics for most of the state. A handful of municipal utilities run their own show, including Murray City Power, Bountiful City Light & Power, Provo City Power and St. George's city utility, and rural co-ops such as Garkane Energy and Dixie Power cover the south and east. If you are outside Rocky Mountain Power territory, check your specific provider's export policy directly — municipal and co-op terms vary and are not bound by the state regulator's rulings.
What you’re paid for what you export
Utah is firmly in the below-retail camp. Rocky Mountain Power closed traditional 1:1 net metering to new customers years ago; today new rooftop systems go onto its Export Credit Rate, a net-billing arrangement where you are charged full retail for what you draw but credited well below retail for what you export. Export credits are seasonal and modest — around five cents per kilowatt-hour, roughly half the retail rate of about 11 to 12 cents — so surplus daytime generation is worth markedly less than the power it displaces. The practical lesson: size the system to your own daytime use, and expect self-consumption, not exports, to drive the savings. Municipal and co-op customers may see different, sometimes better, terms.
Utah incentives & taxes in 2026
Is there anything left to claim in Utah? Almost nothing. The state's Renewable Energy Systems Tax Credit was deliberately stepped down over several years and has now hit zero for new home installations — residential PV placed in service from 2024 onward no longer qualifies — so no meaningful state income-tax credit remains. There is no SREC market and nothing comparable to New Jersey's production incentive. What survives is modest: some benefit may remain in the sales-tax treatment of equipment, and the odd municipal utility offers a small rebate, which is worth a direct call to your provider to confirm.
The 30% federal credit ended on 31 December 2025 and can now only reach a homeowner indirectly through a lease or PPA. Check the current state and utility programs on DSIRE’s Utah list, then type any incentive into the calculator above to see how it shortens your payback.
What solar costs in Utah
Utah installs cheaply: $2.60 to $3.00 per watt is typical, a little under the going national rate, helped by a crowded Wasatch Front installer market and straightforward permitting in many jurisdictions. A 7 kW system comes in around $18,000 to $21,000 — and with no credit or rebate waiting behind it, that is the real number. Prices vary more between installers than between Utah cities, so several itemised quotes will do more for you than shopping by location.
The honest verdict for Utah
Utah has some of the best sun in the country and some of the least flattering maths. Retail rates of 11 to 12 cents mean each offset kilowatt-hour saves you little, below-retail export credits blunt whatever surplus you generate, and with the state credit wound down to zero and no federal help remaining, nothing is left to shorten the payback. For many households that means waiting into the low or middle teens of years for break-even. It can still work — size tightly to daytime use, drive a hard bargain on the install, and model the decision against your actual bill rather than headline savings.
Sources for this page
Driving electric — or heating electric — in Utah?
Your home electricity rate also sets what it costs to charge an EV and whether a heat pump beats a gas furnace. See the Utah EV charging cost and the Utah heat pump vs gas comparison.