Complete Guide to Solar Energy in Utah

Your complete resource for solar energy in Utah. Everything you need to know about federal incentives, export credit rates, solar access laws, and solar installation across the Beehive State.

$2.67
Cost per Watt (2025)
11-14 years
Average Payback Period
11.34¢/kWh
Average Electricity Rate
5.26 hours
Daily Peak Sun Hours

Why Utah is Perfect for Solar Energy

Exceptional Solar Resource

Utah receives 5.26 peak sun hours daily with over 220 sunny days per year, ranking among the top states for solar potential and providing ideal conditions for maximum energy generation year-round.

Low Installation Costs

At $2.67-$3.02 per watt, Utah’s solar installation costs are below the national average, making solar more affordable and accessible for homeowners looking to reduce energy expenses.

Federal Tax Credit Available

The 30% federal Investment Tax Credit remains available through December 31, 2025, covering thousands of dollars in installation costs and significantly improving solar investment returns.

Strong Solar Access Protections

Utah’s solar access laws prohibit HOAs from unreasonably restricting solar installations, with regulations ensuring restrictions cannot decrease production by more than 5% or increase costs by more than 5%.

Quick Solar Facts

Average System Size: 7-12 kW
Annual Generation: 9,500-14,000 kWh
Federal Tax Credit: 30% (until December 31, 2025)
Typical Payback: 11-14 years
System Lifespan: 25-30 years

Quick Solar Savings Calculator

Important 2025 Updates

Rocky Mountain Power Rate Increase (April 2025)

Utah Public Service Commission approved a 4.7% residential electricity rate increase for Rocky Mountain Power customers in April 2025. While significantly lower than the utility’s requested 18.1% increase, rising rates make solar an increasingly attractive investment for long-term cost stability.

Rate Increase Details →

Plug-In Solar Law (2025)

Utah enacted groundbreaking legislation supporting plug-in solar systems by exempting certain small-scale installations from interconnection agreements. Systems must be certified by nationally recognized testing organizations (like UL) and meet specific safety requirements to qualify for simplified installation.

https://www.kuer.org/business-economy/2025-08-15/with-support-in-utah-plug-in-solar-is-just-starting-to-have-its-moment →

Utah Solar Laws & Regulations

Understanding the legal framework that supports solar energy in Utah

Solar Access Protection Law

Utah Code Section 57-8a-701 and Senate Bill 154 prohibit HOAs from unreasonably restricting solar installations. HOA restrictions may not decrease system production by more than 5% or increase installation costs by more than 5%. Any existing prohibitions on solar energy systems are void and unenforceable.

Learn More →

Export Credit Rate Program

Utah uses an export credit rate system instead of traditional net metering. Rocky Mountain Power customers receive 5.636¢/kWh for excess solar exported to the grid during summer months (June-September) and slightly different rates for winter months. Credits are applied to future utility bills.

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Sales Tax Exemption

Solar energy system purchases in Utah are exempt from the state’s 6.1% sales tax, providing immediate upfront savings on equipment and installation costs. This exemption applies to all components of residential solar installations.

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