Solar in Utah: is it worth it in 2026?
Utah is one of the hardest states to make solar pay for itself. Three things decide that: electricity here is among the cheapest in the country (45th most expensive of 51), it gets more sun than most states (10th), and exported power earns much less than the retail rate. Of the 51 states and DC, Utah has the 48th-fastest payback for a typical home.
The average home here pays about $99 a month for 761 kWh. A 5.5 kW system sized for that home would knock about $635 off the first year's bills, 53% of the total.
Checked November 12, 2026
What makes solar pay off in Utah
- Size the system to what you use during the day, not to your whole year: extra power sent to the grid earns about 33% of the retail rate. A battery, or running the dishwasher, laundry and EV charging while the sun is up, raises the value of every panel.
- Cheap power stretches payback. At 13.0¢ per kWh, the price you pay matters more than anything. At $3.34 per watt, the high end of what companies quote, payback for a typical system here goes past 25 years.
Payback by system size
An average Utah home uses about 9,132 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:
| Covers | Size | Price | Makes a year | Payback | 25-year savings |
|---|---|---|---|---|---|
| 49% | 3 kW | $7,710 | 4,452 kWh | 24 years | $751 |
| 73% | 4.5 kW | $11,565 | 6,678 kWh | 23 years | $2,438 |
| 98% | 6 kW | $15,420 | 8,904 kWh | 22 years | $4,126 |
| 122% | 7.5 kW | $19,275 | 11,130 kWh | 23 years | $3,820 |
The 6 kW system has both the fastest payback and the most savings. Assumes exported power earns about 33% of the retail rate, prices rise 2.5% a year and one inverter replacement.
How Utah credits power you send to the grid
Reduced credit (net billing)
Rocky Mountain Power's net billing pays 4.855 cents per kWh for exports in June through September and 4.033 cents the rest of the year (rates from March 1, 2026), updated every March.
By utility
- Rocky Mountain Power (Utah): 4.855 cents per kWh in June through September and 4.033 cents the rest of the year, reset every March 1.
Before you sign in Utah
Check the license. Look the company up with the Utah Division of Professional Licensing, by its legal name or license number, and ask for the electrician's license number too.
Utah has no solar-specific sales law that we know of, so its general consumer protection law applies.
In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.
How to choose a solar company · Contract checklist · Before you sign
Utah compared with its neighbors
| State | Electricity | kWh per kW | Typical payback | Exported power |
|---|---|---|---|---|
| Utah | 13.0¢ | 1,484 | 22 years | Reduced credit (net billing) |
| Idaho | 11.8¢ | 1,468 | 24 years | Reduced credit (net billing) |
| Wyoming | 13.4¢ | 1,533 | 14 years | Full credit (net metering) |
| Colorado | 15.7¢ | 1,595 | 10 years | Full credit (net metering) |
| New Mexico | 14.8¢ | 1,779 | 10 years | Monthly netting |
| Arizona | 15.3¢ | 1,755 | 16 years | Reduced credit (net billing) |
| Nevada | 13.3¢ | 1,753 | 14 years | Reduced credit (net billing) |
Questions about solar in Utah
How long does solar take to pay for itself in Utah?
About 22 years for a typical 5.5 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.
Does Utah have net metering?
Not full net metering. Rocky Mountain Power's net billing pays 4.855 cents per kWh for exports in June through September and 4.033 cents the rest of the year (rates from March 1, 2026), updated every March.
Is there a solar tax credit in Utah in 2026?
Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 5.5 kW system in Utah, that credit was worth about $4,241 and brought payback down to 17 years, instead of 22 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.
Is a solar battery worth it in Utah?
On bill savings alone, not quite: a 13.5 kWh battery at about $15,650 would move about 3,548 kWh of solar power a year from the grid to your evenings in a typical Utah home, adding about $4,529 of savings over 15 years. That doesn't cover its price, so the system's payback goes from 22 years to over 25 years; the rest is paying for backup during outages. Time-of-use rates, battery rebates and utility payments for sharing your battery can tip it; try your numbers in the payback calculator.
Is plug-in solar legal in Utah?
Yes, under HB 340, up to 1,200 watts. No renter or HOA protections.
How do I check a solar company's license in Utah?
Look the company up with the Utah Division of Professional Licensing (dopl.utah.gov) by its legal name or license number, and ask for the electrician's license too.
More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?
Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; Utah PSC: Schedule 137 export credit rates, 2026; Idaho PUC: Rocky Mountain Power export credit rate; Solar.com: Plug-in solar, the 2026 guide; EnergySage: median quoted price, first half of 2026.