State solar guide
Utah solar economics in 2026 depend entirely on your utility rate, available state incentives, and net-metering rules. The federal residential credit expired December 31, 2025. We present the honest picture for your location.
Sources: ElectricChoice June 2026 | NREL PVWatts (Salt Lake City averages 5.0+ peak sun hours per day) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Rocky Mountain Power (RMP), which serves the majority of Utah residents including Salt Lake City, Park City, and Provo, transitioned to net billing for all new solar customers. Export credits are approximately $0.057 per kWh in summer and $0.042 per kWh in other seasons, compared to the retail rate of $0.1333 per kWh. This means exported solar earns approximately 30 to 43% of the retail rate. Grandfathered RMP customers on Schedule 135 or 136 (systems installed before the net metering transition) retain full retail net metering through 2035. New customers receive only the lower net billing rate. Rocky Mountain Power also offers a Subscriber Solar community solar program that allows bill credits for participants without rooftop installation, transferable to another RMP address within Utah.
St. George City (Dixie Power area) and Murray City Power offer full retail net metering - significantly better economics than RMP for customers in those service areas. If you live in St. George or Murray City, your solar economics are materially better than the RMP-served majority of Utah. Verify your specific utility before making any decision.
Program: NM2_avoided_cost. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Utah utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Utah homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Rocky Mountain Power Wattsmart Battery Program Utility rebate (battery storage) Verify current program availability, approved battery models, and enrollment process directly with Rocky Mountain Power before purchasing a battery. Program terms and funding can change. | $400 per kW upfront (maximum $2,000) plus $15 per kW per year for 3 years Upfront rebate of $400 per kW for approved battery storage systems installed in Rocky Mountain Power territory, up to $2,000. Plus ongoing payment of $15 per kW per year for three years. Battery must be paired with solar or standalone (verify with RMP). | Rocky Mountain Power residential customers in Utah installing approved battery storage systems. System must meet RMP specifications and receive approval before purchase. | Active | DSIRE (opens in new tab) |
| Utah Alternative Energy Sales Tax Exemption Sales tax exemption Expiration date under current law is June 30, 2027. Legislative extension is possible but not confirmed. Purchases completed before June 30, 2027 qualify under current law. Verify with your contractor that the purchase is properly coded as exempt. | Approximately $1,700 to $2,100 on a typical residential installation (6.1% of equipment cost) Utah exempts qualifying solar energy equipment from the state 6.1% sales tax. Applies to purchases on or after July 1, 2004 through June 30, 2027 under current law. | Purchases of qualifying solar energy systems for residential installation in Utah before June 30, 2027. | Active | DSIRE (opens in new tab) |
| Utah Residential Property Tax Exemption for Solar Property tax exemption Confirm with your county assessor that the installation is properly recorded as exempt at the time of permit. | Full exclusion of solar-added assessed value from property taxes Utah exempts the added property value from a qualifying residential solar installation from property tax assessment. | Utah residential properties with qualifying solar energy systems. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in Utah
Rocky Mountain Power Wattsmart Battery Program: $400 per kW upfront (up to $2,000) plus $15 per kW per year for three years for approved battery storage systems. This is the strongest available incentive in Utah given the expiration of both the federal residential credit and the state RESTC. Verify current program enrollment and availability with Rocky Mountain Power before purchasing a battery system.
Savings example
This example uses real Utah market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
System size 12 kW at market average of $2.67 per watt. Annual production estimated at 15,600 kWh based on Salt Lake City at 5.0 peak sun hours per day (NREL PVWatts). Assumes 75% self-consumption at $0.1333 per kWh retail value; 25% exported at RMP avoided-cost rate of approximately $0.05 per kWh blended (summer and off-peak). Utility rate escalation at 3% annually. Federal residential credit: $0 (expired). State credit: $0 (expired). This example models a Rocky Mountain Power customer with significant export at avoided-cost rates, a conservative sub-scenario that runs longer than the statewide 11 to 14 year headline range, which is based on typical production and self-consumption conditions across all Utah utilities including municipal utilities with full retail net metering. Customers in St. George or Murray City with full retail net metering will see materially better economics. Figures are illustrative; your in-home assessment will use actual bills and current RMP rate schedule.
Utah Rocky Mountain Power customer (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Utah does not have a statewide residential solar permit fee cap. Permit fees vary by jurisdiction. Salt Lake County and Salt Lake City permit offices typically process residential solar permits in 2 to 4 weeks with fees in the $100 to $300 range. Utah County and Davis County jurisdictions have established solar permit processes. Rocky Mountain Power utility interconnection review adds 4 to 8 weeks after permit issuance. Total contract-to-energization time in Utah typically runs 8 to 14 weeks. SolarAPP+ adoption in Utah is limited; verify with your specific AHJ.
Some Utah mountain resort communities (Park City, Alta, Snowbird area) have separate AHJs with varying timelines and architectural review requirements. St. George area permits may be processed through the city utilities department given the municipal utility structure.
Commercial solar in Utah
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Utah business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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Frequently asked
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