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.

Calculate Savings Learn the Basics
$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

Explore Solar Topics

Laws & Regulations

Federal ITC, export credit rates (5.6-5.9¢/kWh), solar access protections, HOA restrictions limitations, and plug-in solar exemptions for small systems.

Residential Solar

Complete guide for Utah homeowners, optimal system sizing for high solar radiation, roof requirements, and maximizing production with excellent sun exposure.

Costs & Savings

2025 pricing at $2.67-$3.02 per watt, federal tax credit benefits, long-term savings calculations, and ROI analysis with Utah’s electricity rates.

Financing Options

Solar loans, cash purchase advantages, financing through local credit unions, home equity options, and third-party ownership arrangements.

Installation Guide

Finding licensed installers, Rocky Mountain Power interconnection process, export credit enrollment, local permitting requirements, and timeline expectations.

Solar 101

Solar technology , equipment selection for Utah’s climate, battery storage benefits, time-of-use rfundamentalsate optimization, and system maintenance.

Community Solar

Shared solar programs, community renewable energy initiatives, options for renters and those with unsuitable roofs, and subscription benefits.

Solar Calculator

Estimate your solar savings and system requirements.

Quick Solar Savings Calculator

Important 2026 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.
Learn More →

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.
Learn More →