Is Solar Worth It in Utah in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Utah homeowners — without the federal ITC.
Cost Per Watt
$2.80
installed
Electricity Rate
$0.147
per kWh
Payback (No ITC)
15.4 yr
current reality
Payback (With 30% ITC)
10.8 yr
hypothetical
25-Year ROI
62%
return on investment
Incentive Breakdown — Utah
Available incentives for a typical 7kW residential solar system in Utah
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneUtah's residential solar tax credit expired at the end of 2024.
SREC Market
Not AvailableUtah does not have a traditional SREC market.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: Property tax exemption for solar.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Utah
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC
- $0
- Net Cost
- $19,600
- Annual Savings
- $1,272/yr
- Payback Period
- 15.4 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.80/W
- Gross Cost
- $19,600
- Federal ITC (30%)
- -$5,880
- Net Cost
- $13,720
- Annual Savings
- $1,272/yr
- Payback Period
- 10.8 years
Impact: Without the federal ITC, Utah homeowners face a 4.6-year longer payback period — paying $5,880 more out of pocket.
Net Metering Policy — Utah
How Utah compensates your excess solar production
Reduced export credits or net billing — you earn less than retail for excess solar. Moderate impact on payback.
Utah transitioned to a net metering model with reduced export rates. Rocky Mountain Power credits at approximately the avoided cost.
Cost Per Watt Benchmark — Utah
Utah Average
$2.80/W
National Average
$3.05/W
Typical 7kW System
$19,600
Utah's average installed cost is below the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Utah breaks even in 15.4 years. With the former 30% ITC, payback would drop to 10.8 years.
Without Federal ITC
15.4
years to break even
With Former 30% ITC
10.8
years to break even
Production Details
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