Cost of Going Solar in Utah

Cost of Going Solar in Utah 2025

Utah’s abundant sunshine and steadily rising grid electricity rates make it one of the most attractive states in the West for residential solar adoption. In 2025, the average solar cost for a standard 6-kilowatt (kW) home system ranges between $15,000 and $17,000 before incentives, or roughly $2.40 to $2.80 per watt. After applying the 30% federal Investment Tax Credit (ITC), the net out-of-pocket cost drops to around $10,500 to $11,900, depending on equipment type and installer pricing.

A 6 kW array can typically offset about 8,000 kilowatt-hours (kWh) of annual electricity use, the average for many Utah households. Local programs such as the Rocky Mountain Power (RMP) Wattsmart Battery Program can offer additional performance incentives, further lowering total ownership cost. However, once the ITC phases down after 2025, total installation cost could rise by 30%, increasing payback time and reducing the long-term savings potential of solar investments statewide.

Solar Cost Basics

Every solar installation in Utah includes two main expense categories: hardware costs and solar soft costs. Hardware represents the physical equipment used to generate and store energy, while soft costs include design, labor, and administrative services.

Hardware Costs

Hardware typically makes up about 55–60% of the total system price.

Solar panels: Roughly 25–30% of total cost. Panel choice (monocrystalline vs polycrystalline), efficiency rating, and warranty period all influence price.
Inverters: About 10% of system cost. String inverters are most common; microinverters add roughly $0.10–$0.20 per watt but provide improved performance on shaded roofs.
Mounting and racking: Around 5–8%, depending on roof material, pitch, and wind/snow-load requirements.
Wiring and electrical components: Approximately 3–5%.
Solar batteries: Including a home battery storage system can raise the total by 25–35%, depending on the number and capacity of solar batteries installed.

Solar Soft Costs

Solar soft costs make up the remaining 40–45% of the project budget. These cover the professional, regulatory, and operational tasks necessary to bring the system online.

Labor and installation: Typically, 15–20% of total cost. Utah’s solar market benefits from competitive installer pricing, keeping labor rates moderate.
Permitting and inspection fees: Roughly 2–5%, varying by city or county. Many jurisdictions now use SolarAPP+ to streamline approvals.
Design and engineering: Around 3–5%, especially if electrical upgrades or structural reinforcements are required.
Sales and marketing: Approximately 8–10%, reflecting installer acquisition costs.
Overhead and profit: Typically 5–8%, ensuring business viability and warranty support.

This combination of hardware and soft costs defines the final solar power cost Utah homeowners pay.

How Much Do Solar Panels Cost in Utah in 2025?

The average solar panel cost in Utah in 2025 ranges from $2.40 to $2.80 per watt. For a 5 kW system, that equals roughly $12,000 to $14,000 before incentives; larger 10 kW arrays cost about $24,000 to $28,000.

Several factors affect the cost of solar panels in Utah:

System size: Larger systems reduce per-watt pricing by spreading fixed costs across more panels.
Panel type: Monocrystalline panels (20–22% efficiency) command a premium but yield more energy per square foot—ideal for rooftops with limited area. Polycrystalline panels (16–18% efficiency) offer slightly lower output but are less expensive.
Roof structure: Older or steeply pitched roofs can increase labor time and require additional racking materials.
Installer pricing: Competitive solar markets like Salt Lake City and Provo help keep average installation rates low compared to the national average.

Because Utah receives more than 5.5 peak sun hours per day statewide, even moderately sized systems produce strong returns on investment. Choosing efficient modules ensures maximum energy output throughout the year’s sunny and cloudy periods.

Average Cost of Solar Batteries in Utah

Adding energy storage enhances energy independence and protects against grid outages. In 2025, the cost of solar batteries in Utah averages between $1,000 and $1,300 per kilowatt-hour (kWh) of capacity. A 10 kWh solar battery bank, therefore, adds roughly $10,000 to $13,000 to the overall installation price.

Several factors shape the final solar battery cost:

Battery type: Lithium-ion batteries (especially lithium iron phosphate (LFP)) dominate residential systems for their high efficiency, depth of discharge, and long lifespan.
Capacity: Larger storage banks provide more backup hours but increase cost.
Installation complexity: Whole-home backup requires hybrid inverters and transfer switches, raising labor expenses.
Software integration: Advanced monitoring and energy management systems may add slightly to the total price.

Utah residents can offset battery costs through the Wattsmart Battery Program, which offers rebates to customers who allow their batteries to participate in grid support events. This program reduces the initial solar batteries cost and provides ongoing bill credits.

How to Lower Solar Cost in Utah

Although Utah does not offer a statewide solar rebate program, homeowners still benefit from federal and local incentives that substantially lower the cost of going solar.

Federal Investment Tax Credit (ITC)

The federal 30% Investment Tax Credit remains the most valuable incentive available through December 31, 2025. It applies to the entire system cost, including panels, inverters, mounting hardware, and solar batteries charged by solar power. This credit reduces income tax liability by 30% of the project expense and can be carried forward if unused in one tax year.

State and Local Incentives

Utah Renewable Energy Systems Tax Credit: This state credit provides up to 25% of the system’s total cost or $400 (maximum for 2025), whichever is less. While the credit has phased down over time, it still offers modest savings for residents who install solar before 2025 ends.
Sales tax exemption: Utah exempts renewable energy equipment from state sales tax, reducing upfront purchase cost by roughly 6.1%.
Net metering (Transition Program): Under Utah’s current net-billing rules, solar owners receive bill credits for excess electricity sent to the grid at a near-retail rate. These credits help offset evening usage and shorten payback periods.
Utility battery rebates: Rocky Mountain Power and other utilities offer performance-based payments to homeowners enrolling their batteries in grid-support programs.

Together, these incentives reduce the overall solar panel cost and make solar energy a financially sound option across the state.

Paying for Solar Installation in Utah

Utah homeowners can choose from several financing methods to make solar systems more affordable. Each option has unique benefits depending on budget and ownership goals.

Cash Purchase: Paying for the system upfront provides maximum savings and the fastest payback period, often within 7–8 years. Homeowners own the equipment outright and receive all incentives and bill credits.
Solar Loan: Financing spreads payments over 5–15 years and lets homeowners retain ownership. Monthly payments are usually less than current electric bills, and interest is often tax-deductible for secured loans.
Solar Lease: A third party owns the system, and the homeowner pays a fixed monthly fee. This option requires little or no upfront payment but offers smaller lifetime savings since tax credits go to the system owner.
Power Purchase Agreement (PPA): Similar to a lease, but payments depend on actual power production. PPAs allow homeowners to pay for electricity at a lower rate than their utility company charges.

Each financing option enables residents to manage their solar power cost effectively while transitioning to clean energy.

How Much Money Can I Save by Going Solar in Utah?

Utah’s electricity rates remain below the national average at around 12–13 cents per kWh, but steady annual rate increases enhance the long-term value of solar. A 6 kW solar system producing about 8,500 kWh per year can save homeowners $1,000 to $1,100 annually on electric bills.

With a net installation cost of roughly $11,000 after the ITC and state credit, the typical payback period is 8–10 years. After that, the system generates free electricity for the rest of its 25- to 30-year life. Over its lifetime, a Utah homeowner could save $20,000 to $25,000, depending on electricity price trends and system performance.

Adding home battery storage may extend payback slightly but offers critical benefits such as energy resilience, protection during outages, and the ability to store power for use during high-rate evening hours. Batteries also allow participation in utility grid services programs, generating additional annual credits that help offset the solar batteries’ cost over time.

Because Utah combines low installation pricing with abundant sunlight and favorable policy support, residential solar systems installed in 2025 remain among the best long-term energy investments available to homeowners across the state.