Cost of solar panels in Utah (2024)

How much do solar panels cost in Utah?

With professional installation, a typical 6-kilowatt residential solar panel system in Utah costs $16,320. That price drops to $11,424 after the full federal solar investment tax credit (ITC). On the high end, Brett in West Jordan, Utah, told us he spent $44,000.

The size of your solar panel system is a big factor in your overall solar costs. A typical Utah household needs a system with a capacity of 10.72 kW to offset enough energy costs to make solar viable. Depending on your household energy usage, you might need a smaller or larger system.

Average solar panel installation cost by system size in Utah

This doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence and essential if you go off-grid. Permitting, utility fees and maintenance also add to the cost of going solar.

Are solar panels worth it in Utah?

Solar panels are worth it for many Utahns. On average, you’ll spend $9,520 to $27,200 for panels that last about 25 years. Over that same time period, you’d avoid approximately $53,135 in total utility costs.

We’ve talked to dozens of residents with solar panels, and most of them seem satisfied with their decision. For example, Luke in Herriman, Utah, is happy because his electric bill has dropped to just $10. David in Herriman, Utah, said it “was very simple, straightforward and painless setting it up.”

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

With energy costs getting more expensive, it’s nice to have a more predictable (and lower) monthly bill. Ultimately, whether or not it’s worth it financially comes down to how much you pay versus how much you save. In Utah, solar panels usually pay for themselves within 11 years.

But it doesn't work out for everyone. We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Nearly 14% of Utah’s electricity is harvested from solar energy, and the state ranks ninth nationally in total installed solar capacity. Solar energy plays a significant role in Utah’s energy mix, too. Big corporations with significant presences in Utah have all gone solar, including Amazon and Meta.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Utah

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. You’ll hear installers talk about how “efficient” their panels are.

Solar panel efficiency is a measure of how well a panel makes electricity. The more efficient the solar panels you buy are, the fewer panels you need. While more efficient panels cost a little more, you save by buying fewer panels.

In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Additional solar equipment costs

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, lifespan, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can get a stand-alone system for $80 to $400.

Size of your system

The cost difference between a 6-kilowatt system and a 7-kilowatt system is thousands of dollars. To estimate what size system you need, first look up how many kilowatt-hours (kWh) you used last year on your electricity bill. Divide that number by 1,200. This will be roughly the system size you need. For example, if your home used 30,000 kWh last year, you would need a 25-kW system.

» WATT’S THE DIFFERENCE? kW vs. kWh

Condition of your roof

Quality solar panels should last 25 to 30 years, so you need your roof to last just as long. Otherwise, you’ll have to pay to remove the panels, fix your roof and reinstall them again. This is a frustrating and expensive process you should avoid if you can. If you’ve been thinking about replacing your roof, it’s a good idea to do that before getting solar panels.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. Get your roof inspected, fixed or replaced before you get a solar energy system.

Labor costs

The cost of hiring professionals to install your solar system varies based on project size and complexity. Labor costs are usually included in your system's initial price estimate, but be sure to confirm before committing to a contract.

Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the do-it-yourself route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

Local permits and fees

Permits and interconnection fees, though relatively cheap, are worth mentioning. Solar permits vary by municipality in Utah. Usually, city planning or building departments will check if a solar system project complies with building and electrical codes.

For example, Salt Lake City requires fees and inspections before a building permit can be issued. You’ll need your electrical utility’s approval in Summit County as well.

Reputable solar installers in the area can guide you through the permitting process and can often handle it on your behalf. You can also contact your municipality’s building department directly for accurate information and fees.

How to save money on solar panels in Utah

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Utah:

• Compare quotes: Get quotes from at least three or four different solar companies in Utah. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Explore payment options: Affordable financing makes the upfront costs of solar more manageable. For instance, leases and power purchase agreements (PPAs) can let you start saving from day one with little or no money down.
• Use incentives: In addition to the federal solar tax credit, Utah has multiple local incentives and programs.
• Look for rebates: Some solar panel manufacturers offer rebates on their products. While these may not be specific to Utah, they can still provide additional savings. You can inquire with your installer about any available manufacturer rebates.

» TIPS: Get the best solar quotes

Solar incentives, tax credits and rebates in Utah

The federal solar investment tax credit (ITC) is the best financial incentive for going solar in Utah. The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

The ITC drops to 26% in 2033 and 22% in 2034.

Don’t get confused: The ITC is not a rebate or a refund. It is a credit that goes toward what you owe on federal income taxes the year your system becomes operational. Any unused portion of the credit rolls over into future tax years.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

» EXPLORE: Utah solar incentives, tax credits and rebates

How can I pay for solar panels in Utah?

You have options when it comes to paying for your solar system. You can pay cash upfront, take out a solar loan, lease your system or get a power purchase agreement (PPA).

• Loan: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan terms typically last eight to 20 years.
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Power purchase agreement: A solar power purchase agreement (PPA) is similar to leasing. A solar developer buys, installs and maintains solar panels on your property. You buy the power generated by the system on a per kilowatt-hour (kWh) basis. It’s a fixed price, and the cents/kWh is usually cheaper than the utility’s rate for the same amount of electricity.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Utah

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Utah.

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on the system's size, local labor rates and available incentives. Utah homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Utah and other states.

Solar costs vs. savings: Utah and nearby states