Installed home solar in Utah commonly runs about $2.50 to $3.00 per watt before incentives, so a 7 kW system costs roughly $17,500 to $21,000 (confirm with local quotes). At Utah’s 13.29 cents per kWh power rate, simple payback usually lands near 14 to 19 years. The federal 25D homeowner credit ended December 31, 2025. For Utah’s full incentive and net-billing picture, see our Utah solar guide, and for how Rocky Mountain Power credits exports, the Rocky Mountain Power net billing guide.
Utah homeowners pay about 13.29 cents per kWh for electricity (EIA retail sales, residential Utah, as of April 2026), a below-average rate, so the payback math here is different from the high-rate Northeast: a system costs about the same, but each kWh it makes erases less money, which stretches the payback. This page walks the cost per watt, the payback math, and what changed in 2026. For how export credits work, see our guide to how net metering credits your solar exports.
A 7 kW rooftop system in Salt Lake City (ZIP 84101) produces about 10,385 kWh per year (NREL PVWatts v8), and at Utah’s 13.29 cents per kWh residential rate that is worth up to about $1,380 a year (EIA, April 2026), but only for the power you use as you make it. Rocky Mountain Power credits exported power well below retail, so how much you self-consume is what really drives the payback below.
How much does solar cost in Utah?
Price is quoted in dollars per watt of system size. A typical residential install commonly runs about $2.50 to $3.00 per watt before any incentives. That is a national benchmark, not a Utah filing, so treat the table as a starting point and get itemized local quotes to confirm your own $/W. Your price moves with system size, roof complexity, panel and inverter choice, and the installer.
| System size | Fits a home that uses | Estimated installed cost ($2.50 to $3.00/W) |
|---|---|---|
| 5 kW | Smaller bill, roughly $80 to $130/mo | About $12,500 to $15,000 |
| 7 kW | Average bill, roughly $130 to $200/mo | About $17,500 to $21,000 |
| 10 kW | Larger home or an EV, $200+/mo | About $25,000 to $30,000 |
Cost ranges are a national $/W benchmark for planning, not a guaranteed price. Utah charges state sales tax on residential solar equipment, and the state’s residential solar income-tax credit fully phased out (see below), so budget from the full sticker price. Confirm your quote before you decide.
What is the solar payback in Utah?
Simple payback on a typical Utah system usually lands near 14 to 19 years.
Payback is cost divided by what you stop paying the utility. Because Utah’s retail rate is below average and exported power is credited well below retail, payback here runs longer than in the old full-retail net metering era, and it hinges on how much of your own power you use on-site. The table pairs the cost above with a production-based offset, scaled from the verified Salt Lake City PVWatts figure by system size and priced at the 13.29 cents per kWh rate as a best case for power you self-consume.
| System size | Estimated annual production | Best-case yearly bill offset | Simple payback |
|---|---|---|---|
| 5 kW | About 7,420 kWh | About $990 | About 14 to 19 years |
| 7 kW | About 10,385 kWh | About $1,380 | About 14 to 19 years |
| 10 kW | About 14,840 kWh | About $1,970 | About 14 to 19 years |
Estimates, not a guarantee. Production is scaled from NREL PVWatts v8 for Salt Lake City and priced at the current EIA rate. The bill offset shown is a best case that assumes you use the power on-site; power you export earns Rocky Mountain Power’s reduced export credit, which is far below retail, so a home that exports a lot lands at the longer end of the range. Rates, production, and prices vary, so verify your own numbers.
What moves your payback in 2026
Four things decide where you land in that 14 to 19 year window:
- How much power you self-consume. At about 13.29 cents per kWh, power you use as your panels make it is worth full retail, but power you export to Rocky Mountain Power (a division of PacifiCorp) earns the reduced export credit instead. Self-consumption, and pairing solar with big daytime loads or a battery, is the single biggest lever on your payback (EIA).
- Rocky Mountain Power net billing. Utah retired full-retail net metering; new rooftop customers are on a net billing tariff that credits exported power well below the retail rate, roughly in the 4 to 6 cents per kWh range and recalculated each March 1. Verify the current export credit before you size a system (DSIRE net billing, Utah). For the mechanics, see how net metering credits your solar exports.
- No Utah state solar credit. Utah’s state residential solar income-tax credit (the Renewable Energy Systems Tax Credit) phased down from $1,600 to $400 and fully expired for residential solar PV installed after December 31, 2023, so a 2026 Utah homeowner cannot claim it (Utah Office of Energy Development). Leave it out of your math even though older guides still mention it.
- No federal credit in 2026. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Utah homeowner buying with cash or a loan in 2026 cannot claim it (IRS). See what the federal solar tax credit change means in 2026.
The incentive side is lean now, and that is the honest part. With the state credit expired and the federal credit ended, the return on a Utah system comes from the bill you erase, not from a check back. That makes two things matter more than ever: getting a sharp price per watt, and sizing the system to your own daytime use so more of your production offsets full retail. For a broader look at what is left, see our guide to current solar incentives.
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How you pay changes the cost you carry
The sticker price is one thing; how you finance it decides your out-of-pocket and your payback.
| How you pay | Up-front cost | Best when |
|---|---|---|
| Cash | Full system price | You want the shortest payback and the most lifetime savings |
| Solar loan | Little or none, financed over time | You want to own the system with low money down |
| Lease or PPA | $0-up-front where you qualify | You want no out-of-pocket cost and a lower or fixed power price without owning |
A lease or PPA has no up-front cost, but the company owns the panels, terms typically run 20 to 25 years and may include an annual escalator, and total payments can exceed a cash purchase. No 2026 Utah homeowner gets the federal residential credit, since that credit ended after December 31, 2025. For a full payback breakdown, see the financial case for whether solar panels are worth it.
Frequently asked questions
How much does solar cost in Utah?
Installed home solar commonly runs about $2.50 to $3.00 per watt before incentives, so a 5 kW system is roughly $12,500 to $15,000, a 7 kW system is about $17,500 to $21,000, and a 10 kW system is about $25,000 to $30,000. Those are national planning benchmarks, not a Utah price filing, so get itemized local quotes to confirm your own dollars per watt.
What is the payback on solar in Utah?
At Utah’s 13.29 cents per kWh rate, simple payback usually lands near 14 to 19 years, longer than in high-rate states, because the retail rate is below average and Rocky Mountain Power credits exported power well below retail. A 7 kW system in Salt Lake City produces about 10,385 kWh per year (NREL PVWatts v8), worth up to about $1,380 at today’s rate (EIA, April 2026) for power you use on-site. How much you self-consume is the biggest factor in your real payback.
Is there a Utah state solar tax credit in 2026?
No. Utah’s state residential solar income-tax credit, the Renewable Energy Systems Tax Credit, phased down from $1,600 in 2020 to $400 in 2023 and fully expired for residential solar PV installed after December 31, 2023 (Utah Office of Energy Development). Do not count on a Utah state solar credit in your 2026 math, even though older guides still mention it.
Does a Utah homeowner qualify for the federal solar tax credit in 2026?
Not as a homeowner buying in 2026. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a cash or loan buyer cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner.
How does Rocky Mountain Power credit my solar exports?
Utah retired full-retail net metering, so new rooftop customers are on a net billing tariff. Rocky Mountain Power credits the power you export well below the retail rate, roughly in the 4 to 6 cents per kWh range, recalculated each March 1 (DSIRE). That is why self-consumption matters so much in Utah. Verify the current export credit with Rocky Mountain Power before you size a system.
Reviewed by the MySolarFY team. Cost and payback figures are estimates built from NREL PVWatts v8 production and the EIA Utah residential rate, with incentive facts verified against DSIRE, the Utah Office of Energy Development, and IRS sources as of August 2026; prices, production, tariffs, and programs change, so confirm current numbers with local installer quotes and each source before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Cost, savings, payback, eligibility, incentives, and rates vary and are not guaranteed. See our full disclaimer.
