Does Utah Have Community Solar Laws?

Utah has steadily expanded its clean-energy portfolio over the last decade, and community solar is becoming an increasingly important component of that transition. While the state does not have a dedicated community solar law comparable to programs in Colorado or New Jersey, it has enabled shared solar development through a combination of regulatory flexibility, utility-led programs, and municipal initiatives. These efforts allow households, renters, and businesses to access renewable energy without installing residential solar systems on their own rooftops.

Utah Public Service Commission and Community Renewable Energy Act (2019)

The Community Renewable Energy Act (HB 411), passed in 2019, provides the legislative framework for cities and towns in Utah to work with utilities on renewable energy procurement. Though primarily focused on city-scale clean-energy goals, the Act paved the way for Utah community solar partnerships by allowing local governments to develop shared renewable projects and offer residents participation options.

Under HB 411, municipalities that opt in (such as Salt Lake City, Park City, and Moab) can collaborate with Rocky Mountain Power, the state’s largest utility, to achieve 100% renewable electricity by 2030. These cities are exploring community-level solar generation as part of their compliance strategies, setting precedents for scalable community solar projects statewide.

Utah Net Metering and Virtual Participation Models

While Utah phased out traditional net metering for new residential solar systems in 2020, the Utah Public Service Commission (PSC) has continued to explore virtual and aggregated participation models that could support shared solar. This includes pilot frameworks that allow third-party developers and municipalities to allocate production credits among multiple customers, effectively the same principle behind community solar energy.

Current rules enable subscriber-based arrangements where multiple utility customers share energy output from a single facility and receive billing adjustments through bill credits or subscription offsets. These mechanisms are overseen by the PSC to ensure equitable compensation and grid reliability.

Utility and Municipal Leadership

The most prominent community solar farms in Utah have been initiated by utilities and local governments. Rocky Mountain Power, for example, manages the Subscriber Solar Program, which lets residential and business customers purchase blocks of solar energy from centralized arrays. Subscribers pay a fixed rate for their portion of solar generation and receive credits based on avoided fossil-fuel consumption.

In addition, Utah Municipal Power Agency (UMPA) and St. George Energy Services have collaborated on small-scale shared solar facilities for residents who wish to participate without installing their own panels. These programs are not legislated mandates but voluntary initiatives supported by the state’s clean-energy policy environment.

Low-Income and Inclusive Access Provisions

Utah does not currently mandate low-income carve-outs in its community solar programs. However, municipal utilities such as Salt Lake City’s Sustainability Department and non-profits like Utah Clean Energy are developing frameworks to ensure equitable participation. For example, Salt Lake City’s Project Skyline and related partnerships explore how shared-solar models can reduce utility costs for renters and income-constrained households.

As these initiatives expand, policymakers are expected to strengthen inclusion measures similar to those adopted in other states. The state’s flexible regulatory environment and growing interest in distributed generation suggest an upward trajectory for equitable Utah community solar participation in the coming years.

What Is Community Solar?

Community solar refers to a shared-generation model in which multiple customers benefit from a single solar installation. Instead of owning rooftop panels, participants subscribe to a community solar project, a centralized solar array that feeds renewable electricity into the local grid. Subscribers then receive credits on their utility bills proportional to their share of the project’s output.

This model of community solar energy makes renewable participation possible for a wider audience, including renters, condo owners, and businesses that lack suitable rooftops or capital to install residential solar systems.

In Utah, where many homes are shaded by mountains or trees and where seasonal variability can affect rooftop performance, community solar provides a stable and accessible alternative to individual ownership.

When Community Solar Is a Good Option

Community solar is ideal for customers who:

• Rent or lease their property, and cannot install rooftop panels.
• Live in multi-unit dwellings or HOAs that restrict residential solar systems.
• Have limited roof space, poor orientation, or excessive shading.
• Want to support renewable energy without managing installation or maintenance.

For many Utahns, community solar farms offer a practical pathway to clean energy, providing predictable savings and environmental benefits without property modifications.

Advantages Over Residential Solar

Compared with traditional residential solar ownership, community solar projects offer a unique set of advantages:

• No Upfront Cost: Participants pay for energy use, not for hardware or installation.
• Easy Participation: Subscription sign-up is quick and requires no construction or permits.
• Low Maintenance: The developer or utility manages equipment, insurance, and performance.
• Scalable Savings: Customers can select subscription sizes that match their electricity needs.
• Environmental Contribution: Each subscription reduces greenhouse gas emissions and supports Utah’s renewable energy targets.

These characteristics make community solar particularly appealing in Utah, where residents value both cost control and environmental stewardship.

Why Community Solar?

Utah’s energy market is evolving toward cleaner, more diversified resources, and community solar energy plays an increasingly significant role. The model offers environmental, social, and financial benefits that align with Utah’s clean-energy roadmap and growing public demand for sustainability.

Benefits of Community Solar for Homeowners, Renters, and Businesses

1. Energy Savings
   Subscribers typically see modest but consistent savings on their electricity bills. Programs like Rocky Mountain Power’s Subscriber Solar charge a fixed rate for solar energy blocks, helping participants hedge against utility-rate volatility.
2. Increased Access
   Community solar breaks down barriers for renters, small businesses, and property owners with unsuitable roofs. Because participation does not require ownership, virtually anyone in the utility’s service area can join.
3. Economic and Local Benefits
   Each community solar project generates construction and maintenance jobs while contributing to rural economic development. Local governments often lease unused public land for community solar farms, generating steady lease revenue.
4. Environmental Stewardship
   Every kilowatt-hour produced by community solar energy displaces fossil-fuel generation, helping Utah reduce air pollution and carbon emissions, key priorities in cities like Salt Lake City and Logan, which experience air-quality challenges during winter inversions.
5. Flexibility and Simplicity
   Subscribers can join, transfer, or cancel participation with minimal notice. This flexibility appeals to Utah’s mobile population, including renters and students.

Collectively, these benefits of community solar make it a critical complement to rooftop solar and a central part of Utah’s transition to a cleaner energy future.

Are There Community Solar Projects in Utah?

While Utah’s community solar project market is smaller than those of states with formal legislative programs, it has been expanding through utility and municipal partnerships. Several operational and planned projects now serve residential and commercial subscribers across the state.

Statewide Market Overview

As of 2025, Utah hosts approximately 20 operational community solar projects totaling around 60 megawatts (MW) of installed capacity. Most are concentrated in northern and central Utah, near Salt Lake City, Provo, and Ogden, where demand for renewable energy and subscription programs is highest.

The state’s largest utility, Rocky Mountain Power, has played a leading role in scaling community solar farms through its Subscriber Solar Program, launched in 2016. Municipal utilities, cooperatives, and universities have since followed suit with smaller installations designed to test new models of community participation.

Notable Community Solar Projects

Some of Utah’s most influential community solar farms include:

• Spencer Flats Solar Farm (Tooele County) – A large-scale Rocky Mountain Power facility powering both residential and commercial subscribers.
• St. George Community Solar Farm – Operated by St. George Energy Services, this project provides affordable renewable power for southern Utah residents.
• Park City Shared Solar Project – A city-backed initiative contributing to Park City’s goal of 100% renewable electricity by 2030.
• Logan Community Solar Array – A collaboration between Logan City Light & Power and Utah State University, combining solar education with practical energy delivery.
• Provo City Solar Park – One of the earliest municipal community solar projects, supplying clean power to households within the city’s municipal-utility boundary.

These projects illustrate how Utah communities are leveraging local partnerships to expand renewable access and pilot new business models for community solar energy.

How Residents Can Join

Residents can enroll in a Utah community solar program by following a few straightforward steps:

1. Verify Eligibility – Confirm that your utility participates in or supports community solar subscriptions.
2. Select a Program – Options include Rocky Mountain Power’s Subscriber Solar, city-managed programs, or third-party developer offerings.
3. Choose Subscription Size – Decide how much of your electricity consumption you want to offset through the shared project.
4. Sign a Subscription Agreement – Contracts specify cost structure, duration, and transferability.
5. Receive Monthly Credits – Your utility applies credits or adjustments to your electric bill based on your subscription share.

For most Utahns, joining a community solar project requires no equipment, property changes, or upfront costs, making it an attractive entry point into renewable energy participation.

How Does Community Solar Work in Utah?

The Utah community solar model operates through shared generation and utility billing credits, similar to other U.S. states but with local program variations.

A community solar project consists of a centralized solar array connected to the utility grid. The facility generates electricity that is measured in real time by the utility. Each subscriber owns or leases a portion of the system’s capacity. The utility then calculates how much energy the subscriber’s share produced and applies equivalent credits or charges to their bill.

Example: Rocky Mountain Power Subscriber Solar Program

Rocky Mountain Power’s Subscriber Solar remains Utah’s flagship community solar initiative. The program allows participants to subscribe to 1-kilowatt (kW) blocks of solar energy sourced from a community solar farm near Holden, Utah. Subscribers pay a fixed premium per kWh for solar generation but lock in protection from future rate increases.

The energy produced feeds into the grid, and customers receive credits based on their subscribed share. Although the savings vary depending on market rates, participants gain stable, transparent access to renewable energy without equipment ownership or maintenance.

Example: Municipal and Co-Op Models

Municipalities such as St. George and Provo have also established community solar farms that allocate shares of production to local customers. Co-operative utilities like Moon Lake Electric Association have explored pilot projects enabling aggregated participation under similar models. These initiatives demonstrate how community solar energy can succeed even without a statewide legislative framework.

Incentives and Financial Structure

While Utah lacks state-specific subsidies for community solar, developers and utilities can access federal incentives, like the Investment Tax Credit (ITC), which covers 30% of project installation costs through 2025. This incentive helps lower the capital burden and keeps subscription pricing competitive.

Subscribers indirectly benefit when utilities or developers pass on these savings, resulting in lower community solar cost structures or rate stability over time. Some projects also generate Renewable Energy Credits (RECs) that further offset operational costs and support the state’s renewable portfolio objectives.

How Much Does Community Solar Cost in Utah?

Community solar cost in Utah varies depending on the utility, developer, and program structure. Most participation models require no upfront investment. Instead, subscribers either pay a fixed monthly rate or a per-kilowatt-hour (kWh) charge for the energy produced by their share of a community solar project.

These structures typically deliver annual savings between 5% and 15%, depending on electricity market conditions and project type.

The cost includes expenses for site development, construction, financing, maintenance, and administrative management of the community solar farm. Subscribers do not pay for insurance, operations, or repairs. Contract lengths vary (typically between 10 and 20 years), but many Utah programs allow flexible or transferable subscriptions.

For income-qualified residents enrolled through municipal initiatives, additional discounts may be available through utility partnerships or grant-funded pilot programs. Thanks to declining solar-hardware prices and the continued federal ITC, Utah community solar remains one of the most affordable and practical clean-energy options for residents seeking to support renewable generation without installing residential solar systems on their homes.