Solar in Utah: market, incentives and net billing reality

Market snapshot

Solar in Utah by the numbers

Installed capacity

1,900 MW

Homes powered

340K

Solar share of electricity

9%

Solar jobs in state

7,900

Typical cost per watt

$2.60

US ranking

#25

Utah's residential solar market grew rapidly in the mid-2010s under retail net metering before Rocky Mountain Power's 2017 shift to the Net Billing Service Schedule. Volume has stabilised since; residential sales now rely more heavily on the state tax credit, federal credit, and Utah's excellent sun hours (over 5.3 peak sun hours per day in Salt Lake City). Growth is concentrated in the Salt Lake, Provo and St. George metros.

Rates and net metering

Electric rates and how solar export is credited

Incentives

State and local solar incentives in Utah

Beyond the 30 percent federal Residential Clean Energy Credit, which applies in every US state through 2032, Utah has these state and local programmes.

Utah Renewable Energy Systems Tax Credit

25 percent state income-tax credit on residential solar system cost, capped at $400 (reduced from $1,600 in 2022; the cap steps down $400 each year and phases out entirely by 2026). Applies in addition to the 30 percent federal credit. Confirm the current cap on the Utah Office of Energy Development website before quoting.

Property-tax exemption

Utah exempts the added value of residential solar systems from property-tax assessment under Utah Code 59-2-108.5. Automatic.

No sales-tax exemption

Utah does not have a sales-tax exemption on residential solar equipment. The standard 4.85 percent state sales tax plus local additions applies.

Net metering grandfathering

Residential customers who installed solar before the 2017 shift are grandfathered on retail-rate net metering through 2035. New systems do not qualify.

Permits and interconnection

Permits and interconnection

Permit timelines in Utah vary by jurisdiction. Salt Lake County, Utah County and Davis County commonly take 2 to 5 weeks for residential. SolarAPP+ adoption is growing; Salt Lake City uses it for standard residential installations. Interconnection with Rocky Mountain Power typically runs 3 to 6 weeks post-install.

Running a solar company here

Running a solar company in Utah

Running a solar company in Utah means operating in a market reshaped by the Net Billing Service Schedule, where system sizing precision matters more than it did under retail NEM. The installers who have grown fastest are the ones who size systems closer to self-consumption rather than targeting 100 percent offset, and who pair solar with battery storage more often than peer states. Salt Lake metro has moderate lead costs ($100 to $150 range) and the rest of the state is cheaper.

Questions people ask

Solar in Utah: FAQ

Does Utah have net metering?

Not in the retail-rate sense since 2017. Rocky Mountain Power's Net Billing Service Schedule (schedule 136) credits residential solar exports at around $0.045 to $0.060 per kWh, lower than the retail rate. Pre-2017 customers are grandfathered on retail NEM through 2035.

What is the Utah state solar tax credit?

25 percent of the installed system cost, capped at $400 as of 2025 (the cap steps down each year and phases out entirely by 2026 or 2027). Confirm the current cap on the Utah Office of Energy Development website before quoting a customer, as the number moves.

How much does solar cost in Utah?

Residential solar in Utah averages around $2.60 per watt installed, meaning a typical 7 kW system costs about $18,000 gross. After the 30 percent federal tax credit and the (shrinking) state credit, net cost is around $12,000 to $12,500.

Is solar worth it in Utah?

Yes for most Utah homes with suitable roofs, but with longer payback than full-NEM Sun Belt peers like Arizona or Nevada due to the export credit rate: typically 9 to 13 years for residential installations with the federal tax credit. Pairing solar with battery storage, sized for self-consumption, shortens payback meaningfully under net billing.