Federal solar credit ended Dec 31, 2025
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Solar costs · Utah

Solar Panel Cost in Utah

Updated Data verified Nov 5, 2026

A typical Utah home uses 774 kWh a month[1] of electricity. Covering that with solar takes a system of about 6.3 kW est.[1,2], which costs roughly $19,500 to $26,000 est.[1,2,3] before incentives at the state's median installed price. With Utah's average residential price of 13.19¢ per kWh[4], our model puts payback at about 24 years est.[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

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Utah solar at a glance

Average electricity price13.19¢/kWh[4]Jan–Aug 2026 average (preliminary)
Average home use774 kWh/mo[1]2024 average
Solar output per kW1,484 kWh/yr[2]PVWatts estimate for Salt Lake City
Median installed price$3.60/W[3]Estimate, before incentives
Typical system6.3 kWSized to cover 100% of use
Typical price$22,700Estimate, before incentives
Year-1 savings$820Estimate
Payback24 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: Rocky Mountain Power credits exports from new solar customers at about 4.31¢ per kWh; we use it for Utah. Other utilities differ. Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in Utah by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in Utah.

Estimated cost, output and payback by system size in Utah
SystemPrice before incentives[3]After incentiveskWh in year 1[2]Year-1 savings[4][5]Payback (years)
4 kW$14,400$14,4005,940$52024
6 kW$21,600$21,6008,900$78024
8 kW$28,800$28,80011,870$1,04024
10 kW$36,000$36,00014,840$1,30024
12 kW$43,200$43,20017,810$1,56024

Incentives that lower the price in Utah

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026

All Utah incentives, including utility and local programs →

How Utah utilities credit your solar

Rocky Mountain Power customers who applied to interconnect after October 30, 2020 are on Schedule 137 'Net Billing Service': exported energy earns a PSC-approved export credit rate (updated each March; 4.855 cents/kWh June-September and 4.033 cents/kWh October-May from March 1, 2026) applied against monthly power and energy charges, with excess credits carrying over within the annual billing period and expiring at its end.[7]

We have not added every Utah utility yet, so the estimates on this page use the state-level rule: Rocky Mountain Power credits exports from new solar customers at about 4.31¢ per kWh; we use it for Utah. Other utilities differ.[5]

Full Utah net metering and export-credit rules →

FAQ

Frequently asked questions

How much do solar panels cost in Utah?

At the state median installed price of $3.60 per watt est.[3], a 6.3 kW est.[1,2] system that covers a typical home's use costs about $22,700 est.[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in Utah?

For a cash purchase at the state's average electricity price of 13.19¢ per kWh[4], our model estimates about 24 years est.[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)[8] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.