In Utah, a typical residential solar panel system costs $15,100 to $30,200 before incentives, depending mainly on the system’s size and equipment.
Jump to insightThe 30% federal solar tax credit expired at the end of 2025. Utah homeowners may still qualify for state tax benefits and net billing.
Jump to insightNet billing lets residents with solar panels earn credits for excess electricity they generate and send to the grid.
Jump to insightResidential solar panel incentives in Utah
Utah residents may also take advantage of a local group-purchase solar program or a utility battery incentive:
- Summit Community Power Works Solar: This community-led program is available to residents in Summit and Wasatch Counties in Utah. SCPW Solar allows people to join together and benefit from bulk-purchase discounts on solar installations. This makes going solar more affordable and accessible for Utah homeowners. SCPW Solar aims to simplify the process and promote clean energy adoption in the community.
- Rocky Mountain Power Wattsmart Battery Program: Customers who install an eligible new battery may receive a $1,000 upfront incentive for a system under 10 kW or $2,000 for a single battery of 10 kW or more. Participants can also earn monthly bill credits. Standalone residential batteries must be enrolled in an eligible time-of-use or time-of-day rate.
What to know about net billing in Utah
Utah uses net billing rather than traditional net metering. If your solar panels produce more electricity than your home uses, the extra power goes to the grid and you receive a credit on your electric bill.
Any unused credits left at the end of the annual billing cycle go to the utility without compensation.
The credit helps offset the electricity you buy from the grid, but it is usually based on a lower export rate rather than the full retail rate you pay for electricity.
Rocky Mountain Power export rates
Your rate depends on when your solar system was connected:
- Before Nov. 15, 2017: Customers are grandfathered into legacy net metering through 2036 and receive a full kilowatt-hour credit.
- Nov. 15, 2017, to Oct. 30, 2020: Customers receive about 90% to 92.5% of the average retail rate through 2033.
- After Oct. 30, 2020: Customers receive Rocky Mountain Power’s Schedule 137 export credit rate.
As of March 1, 2026, the Schedule 137 rate is:
- 4.855 cents per kWh from June through September
- 4.033 cents per kWh from October through May
The Utah Public Service Commission can update these rates each year, so check the current tariff before estimating your solar savings.
Federal solar programs
A few standing federal programs can still help Utah homeowners save money on going solar:
- Energy-Efficient Mortgages: FHA- and HUD-backed Energy-Efficient Mortgage programs let Utah homebuyers finance the cost of solar panels and other efficiency upgrades directly into their home loan.
- Fannie Mae Green Financing: This program mainly benefits apartment buildings and cooperatives, so it’s less relevant to most single-family Utah homeowners, but it can apply to larger residential solar projects.
How much do solar panels cost in Utah?
A typical solar panel system in Utah costs $15,363. However, system size greatly affects how much you pay overall. The average solar panel system size in Utah is 5.8 kW. You might need a bigger or smaller one.
How do you know what system size you need? For a rough estimate, divide your annual electricity use in kWh by about 1,200. For example, 15,000 kWh divided by 1,200 equals roughly 12.5 kW, although an installer should calculate the appropriate size based on your roof, location and energy use.
Average solar panel cost by system size in Utah
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide | $15,100 | $18,120 | $21,140 | $24,160 | $27,180 | $30,200 |
| Salt Lake City | $14,160 | $16,992 | $19,824 | $22,656 | $25,488 | $28,320 |
Find solar companies in Utah
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Utah’s top solar companies to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Blue Raven Solar | Learn More | 3.2 |  | Cash, loan, lease, PPA | 2014 |
 Project Solar | Learn More | 3.9 | | Cash, loan | 2020 |
 ShopSolar | Learn More | 4.5 |  | Cash, loan | 2018 |
 Tesla Energy | Learn More | 1.9 | | Cash, loan and lease | 2015 |
FAQ
Can I get free solar panels in Utah?
No, but you can lease solar equipment or enter a power purchase agreement (PPA) with little to no upfront costs. Still, neither is totally free. Solar leases generally require a flat monthly fee. With a PPA, you pay for the electricity the system generates.
» FREE SOLAR PANELS: Are they really free?
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option of getting a lease or power purchase agreement.
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Utah?
On average, Utah homeowners with solar panels avoid $31,768 in utility costs over 25 years.
Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy. Knowing your average energy consumption helps determine the size and capacity of the solar system you need. Once you know this, you can figure out potential savings and how long it should take for your solar installation to pay for itself. In Utah, solar panels usually pay for themselves within 19.86 years.
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters, too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
Is my HOA allowed to restrict solar panels?
Utah limits how HOAs can prohibit or restrict solar panels, but the exact rules depend on your property and the association’s governing documents. HOAs may impose certain placement, appearance, safety and installation requirements. Check your HOA declaration and rules before installing a system, and consider seeking legal advice if a restriction appears unreasonable.
What has Utah’s investment in solar been so far?
Total solar investments in the state amount to $7.3 billion, according to the Solar Energy Industries Association.
Bottom line
Utah doesn’t have as many solar incentives as other states, but there are a few you can take advantage of. The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states.
Whether solar is worth it — particularly worth it in Utah — depends on your installation cost, electricity use, financing terms and available utility incentives. Compare several quotes and estimate your payback period before committing to a system.
Solar costs vs. savings: Utah and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Arizona | $12,823 | $21,372 | 7 kW | $2.14 | $42,844 |
| Colorado | $16,729 | $27,882 | 4.9 kW | $2.79 | $31,582 |
| Idaho | $16,992 | $28,320 | 6.3 kW | $2.83 | $7,664 |
| Nevada | $14,049 | $23,414 | 7.2 kW | $2.34 | $36,225 |
| New Mexico | $16,898 | $28,164 | 5.2 kW | $2.82 | $22,365 |
| Utah | $18,120 | $30,200 | 5.8 kW | $3.02 | $31,768 |
| Wyoming | $19,942 | $33,238 | 6.9 kW | $3.27 | $46,147 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, "Utah Solar Programs." Accessed July 21, 2026.
- Rocky Mountain Power, "Wattsmart Battery Program." Accessed July 21, 2026.
- Utah Energy Hub, "Connecting Solar to the Grid and Export Credit Rates." Accessed July 21, 2026.
- Solar Energy Industries Association, "Utah Solar." Accessed July 21, 2026.
- Utah State Legislature, "Solar Access." Accessed July 21, 2026.
- IRS, "Residential Clean Energy Credit." Accessed July 21, 2026.
- Fannie Mae Multifamily, "Green Financing." Accessed July 21, 2026.
