Solar Calculator for Utah: Costs, Incentives & ROI
Utah's solar market entered a significant regulatory transition in 2025 that fundamentally changed how new solar customers are compensated for the electricity their panels produce. Rocky Mountain Power, a subsidiary of PacifiCorp and the dominant utility serving approximately eighty percent of Utah's residential customers across Salt Lake City, the Wasatch Front, Provo-Orem, and St. George, concluded proceedings under Utah Public Service Commission Docket 14-035-114 by moving new solar customers from traditional net metering to a Net Billing structure. Under the prior net metering framework, excess solar electricity exported to the grid was credited at the full retail rate of approximately ten cents per kilowatt-hour. Under Net Billing, exported solar electricity earns approximately five point seven cents per kilowatt-hour — roughly fifty-seven percent of the retail rate — while electricity imported from the grid is billed at the standard retail rate. Utah homeowners who interconnected solar systems before the transition are grandfathered at retail-rate net metering for ten to fifteen years depending on their application date. Utah's property tax treatment is notably favorable: Utah Code Section 59-2-1115 provides a full exemption for residential solar energy systems, ensuring a solar installation does not add to a home's assessed value. Utah's electricity rates average approximately ten cents per kilowatt-hour, meaning solar economics depend heavily on self-consumption rather than export compensation under Net Billing. An additional unique angle for Utah is the Wasatch Front's growing electric vehicle concentration: the Salt Lake City-Provo-Park City corridor has one of the highest EV adoption rates in the Mountain West, driven by proximity to the Tesla Gigafactory supply chain in Nevada and Rivian's regional presence, making solar-plus-EV pairing a compelling local buyer narrative.
Incentive data updated: May 2026(may be outdated)
Average Solar Cost in Utah
Average installed solar costs in Utah typically range from $2.60 to $2.80 per watt before the federal Investment Tax Credit, reflecting the competitive Mountain West market and Utah's relatively low labor costs compared to coastal states. A standard six-kilowatt system costs approximately $15,600 to $16,800 before incentives; the thirty-percent federal ITC reduces net cost to roughly $10,900 to $11,800. Utah does not offer a statewide solar rebate or state tax credit, making the ITC the primary financial incentive. Utah Code Section 59-2-1115's property tax exemption provides additional long-term protection: solar owners do not face property tax reassessment when their installation increases the home's market value. For homeowners with electric vehicles — increasingly common on the Wasatch Front — solar-plus-EV systems offer strong dual-benefit economics: the EV charging load creates additional self-consumption opportunity that improves returns under Net Billing's lower export-credit rate. Battery storage is gaining relevance for the same reason, allowing homeowners to maximize self-consumption of output that would otherwise export at five point seven cents. Murray City Power and approximately forty-six other small municipal utilities operate independently of Rocky Mountain Power; homeowners in these territories should verify their specific compensation policies directly with their utility.
- Avg. installed cost
- $2.70/W
- Typical 6 kW system
- $16,000–$17,500
Top Solar Incentives in Utah
Live incentive data not currently available for Utah. See the federal incentive guidance via our Solar Tax Credit Calculator.
Electricity Rates in Utah
Utah residential electricity rates average approximately ten cents per kilowatt-hour, among the lowest in the continental United States. Rocky Mountain Power's rate structure includes tiered and time-of-use options, with blended residential rates in the nine-to-eleven-cent range. Low retail rates mean solar payback periods in Utah are longer than in high-rate states, because each kilowatt-hour saved is worth ten cents rather than twenty-five or more. The 2025 Net Billing transition adds complexity: self-consumed solar avoids the full retail rate, but excess exports earn only five point seven cents — making self-consumption optimization critical. Homeowners who charge an EV during midday solar production, run major appliances during peak generation hours, or add battery storage to shift evening consumption to solar energy maximize self-consumption and reduce the fraction exported at the lower credit rate. Utah's exceptional solar resource partially offsets lower retail rates: a six-kilowatt system on the Wasatch Front produces substantially more annual electricity than the same system in New England.
Peak Sun Hours in Utah
Utah's solar resource is among the strongest in the continental United States. Salt Lake City at approximately forty-one degrees north latitude receives approximately five point five to six peak sun hours per day on a south-facing tilted surface, reflecting the region's high elevation, low humidity, and the Rocky Mountain rain-shadow effect. Southern Utah — St. George and the Colorado Plateau — approaches six to six and a half peak sun hours, competitive with Arizona and Nevada. A six-kilowatt system in Salt Lake City typically produces nine thousand to ten thousand kilowatt-hours per year, significantly more than similar systems in Michigan or New York. Utah's high-altitude location means panels operate closer to Standard Test Conditions temperatures for more of the year than in hot desert states where summer heat deratesoutput significantly. Infrequent winter snowfall at lower Wasatch Front elevations rarely causes extended production losses. The combination of Utah's excellent solar resource and the property tax exemption makes installation economics more competitive than the state's low electricity rates alone might suggest.
Example ROI for a 6 kW System
- Estimated annual savings
- $700
- Payback period
- 10.0 years
- 25-year net savings
- $19,000
Run a personalized estimate with your ZIP code using the Solar ROI Calculator.
Major Cities in Utah
- Salt Lake City84101
- West Valley City84119
- Provo84601
- West Jordan84084
- Orem84057
Common Questions About Solar in Utah
What is Utah's 2025 Net Billing transition, and how does it affect solar payback?
Utah's 2025 Net Billing transition is the result of Utah Public Service Commission Docket 14-035-114 proceedings concluded by Rocky Mountain Power, which moved new residential solar customers from traditional net metering to a Net Billing structure effective in 2025. Under the prior net metering framework, excess solar electricity exported to Rocky Mountain Power's grid was credited at the full retail rate of approximately ten cents per kilowatt-hour — effectively running the meter backward at full value. Under Net Billing, exported solar electricity earns an export-credit of approximately five point seven cents per kilowatt-hour, which is significantly below the retail rate a homeowner pays for grid electricity. This means that solar output consumed directly in the home — running appliances, charging an EV, or stored in a battery — is worth the full ten-cent retail rate in avoided purchases, while output sent to the grid earns only five point seven cents. Homeowners who interconnected solar under the prior net metering framework before the transition took effect are grandfathered at retail-rate net metering for ten to fifteen years depending on their application date. For new installations after the transition, the practical implication is that system sizing and self-consumption optimization matter more than in a full retail-rate net metering environment: oversizing a system to produce large surpluses that export to the grid generates less per-kilowatt-hour than the self-consumed portion.
Should I pair solar with my Tesla or Rivian EV in Utah's Wasatch Front?
Pairing solar with an electric vehicle makes particularly strong economic sense on Utah's Wasatch Front — the Salt Lake City, Provo, West Valley City, and Park City corridor — where EV adoption is among the highest in the Mountain West. The core economics are favorable: a typical EV driven twelve thousand to fifteen thousand miles annually requires approximately three thousand to four thousand kilowatt-hours of charging electricity per year. If you charge primarily during peak midday solar production hours using a Level 2 home charger, that charging load can be largely offset by direct solar self-consumption at the full retail rate of approximately ten cents per kilowatt-hour. Under Utah's 2025 Net Billing structure, this direct self-consumption is especially valuable because it avoids the lower five point seven cent export credit that applies when surplus solar electricity is sent back to Rocky Mountain Power. A six-kilowatt solar system producing nine thousand to ten thousand kilowatt-hours annually in Salt Lake City can realistically offset much of a household's EV charging load while also reducing the home's grid electricity purchases. Battery storage adds a further dimension: excess midday solar production that would otherwise export to the grid can be stored for evening EV charging, further increasing self-consumption. Utah's DOPL-licensed solar installers increasingly offer integrated solar-plus-EV-charger quotes, and the federal ITC applies to both the solar system and qualifying battery storage.
Does Utah exempt solar panels from property tax?
Yes. Utah Code Section 59-2-1115 provides a full property tax exemption for residential solar energy systems, protecting Utah homeowners from property tax reassessment when a solar installation increases the home's market value. Under the exemption, the value added by a solar energy system is excluded from the home's assessed value for property tax purposes — meaning a successful solar installation that increases your home's resale value by twenty thousand dollars does not trigger a corresponding increase in your annual property tax bill. The exemption applies statewide to solar photovoltaic systems and battery storage associated with a residential solar installation. There is no application requirement, dollar cap, or sunset date specified under the current statute. It is important to note, however, that Utah's property tax exemption for solar does not extend to sales tax: Utah imposes a state sales tax of four point eighty-five percent plus applicable local sales taxes on solar equipment purchases, including panels, inverters, racking hardware, and installation materials. This contrasts with states like Maine and New Mexico that specifically exempt solar equipment from sales tax. Homeowners should factor the Utah sales tax on installed equipment cost into their overall investment calculation, as it represents an additional upfront cost not present in tax-exempt states.
What is the typical payback period for solar in Utah after the 2025 Net Billing change?
The typical payback period for a new residential solar installation in Utah under the 2025 Net Billing framework is approximately nine to eleven years for a well-sized system, depending on household electricity consumption patterns, self-consumption rate, and the fraction of solar output exported versus consumed directly. A six-kilowatt system in Salt Lake City producing approximately nine thousand kilowatt-hours annually, with a self-consumption rate of approximately seventy to eighty percent, generates annual savings in the six hundred to eight hundred dollar range — combining avoided grid electricity purchases at the full retail rate with exported electricity credited at the Net Billing export rate. After the thirty-percent federal Investment Tax Credit reduces the net installed cost to roughly eleven thousand to twelve thousand dollars, a ten-year payback is a reasonable central estimate. This is longer than the seven-to-eight-year paybacks achievable in high-rate states like Rhode Island or Massachusetts, reflecting Utah's lower retail electricity rate of approximately ten cents per kilowatt-hour. The property tax exemption under Utah Code Section 59-2-1115 adds long-term value by preventing reassessment: over a twenty-five-year system lifespan, this protection can represent meaningful accumulated savings in counties with higher property tax mill rates. Obtaining three competitive quotes from DOPL-licensed electrical contractors and using the Solar ROI Calculator with your specific Rocky Mountain Power tariff and household consumption profile will produce the most accurate payback estimate for your situation.
Best Solar Installers in Utah
Utah requires solar installation contractors to hold an Electrical Contractor license (E100 or E200) from the Utah Division of Occupational and Professional Licensing (DOPL). Verify contractor license status at the DOPL public lookup portal before signing a contract. NABCEP certification is a recommended quality indicator beyond the state licensing minimum.
- Get at least 3 quotes from different installers to compare pricing and equipment.
- Check installer ratings with the BBB before signing a contract.
- Verify contractor licensing with Utah Division of Occupational and Professional Licensing (DOPL) — Electrical Contractor license (E100/E200). Ask for proof of a 20–25 year panel warranty.
Top Utility Companies in Utah
Rocky Mountain Power (PacifiCorp)
Service area: Salt Lake City, West Valley City, Provo, West Jordan, Orem, Wasatch Front, St. George, most of Utah (~80% residential)
Tariff: tier-2, TOU
Residential rate: 9.0–11.0¢/kWh (as of 2026-05)
NEM program: UT Net Billing — transition 2025 (PSC Docket 14-035-114); export credit ~5.7¢/kWh; self-consumption at full retail; pre-2025 NEM grandfathered
Murray City Power
Service area: Murray
Tariff: flat
Residential rate: 9.0–11.0¢/kWh (as of 2026-05)
NEM program: Municipal net metering — policies vary; consult Murray City Power directly
Net Metering Policy in Utah
- Version
- NEM transition
- Effective date
- 2025-01-01
- Buyback rate
- export-credit — 5.70¢/kWh
- System size cap
- 25 kW
- Grandfathering
- Pre-2025 NEM customers grandfathered at retail-rate net metering for 10–15 years depending on application date; new applications enroll in Net Billing
Utah PSC Docket 14-035-114 transitioned NEM 1.0 retail-rate to Net Billing effective 2025. Export credit ~5.7¢/kWh (significantly below ~10¢/kWh retail rate). Self-consumed solar avoids full retail rate. Pre-2025 NEM customers grandfathered at retail-rate net metering for 10–15 years depending on application date. Rocky Mountain Power (PacifiCorp) is primary IOU (~80% UT residential). Small municipal utilities (Murray City Power + ~46 others) may have independent NEM policies.
Property Tax Exemption in Utah
- Status
- full
- Exemption
- 100%
- Applies to
- solar-pvstorage
Utah Code § 59-2-1115 — residential solar energy system value exempt from property tax assessment. A solar installation does not add to a home's assessed value for property tax purposes. NOTE: Utah sales tax (4.85% state + applicable local) is NOT exempt for solar equipment purchases — panels, inverters, and installation materials are subject to standard Utah sales tax.