Utah has cheap power, about 13.29 cents per kWh, so solar pays here on very high sun, not a big rate. Rocky Mountain Power replaced retail net metering with net billing: exports now earn roughly 4 to 4.9 cents per kWh, well under retail. The state credit has ended, so self-consumption and batteries matter most. For Rocky Mountain Power’s net-billing rates and rules, see our Rocky Mountain Power solar and net billing guide.
- Utah residential power runs about 13.29 cents per kWh (EIA Electric Power Monthly, April 2026), one of the lower rates in the country, so payback leans on Utah’s very high sun and on using your own power.
- Rocky Mountain Power (a PacifiCorp utility) is the dominant electric utility in Utah, serving about 1.7 million customers across six western states, and it runs the interconnection you will sign up under (U.S. DOE AFDC).
- Net metering was replaced. New solar customers go on net billing (Schedule 137), which credits exported power at about 4.855 cents per kWh from June through September and 4.033 cents from October through May, not the retail rate (Rocky Mountain Power Schedule 137).
- The Utah state solar tax credit has ended. The residential Renewable Energy Systems Tax Credit phased down and is gone for systems placed in service after 2023, so it is $0 for 2026 (SEIA).
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
If you own a home in Utah, this is how rooftop solar actually pays you back in 2026, told straight. Utah gets some of the best sunshine in the country, but two things changed the math: Rocky Mountain Power swapped full retail net metering for a lower export credit, and both the state and federal solar tax credits have ended. That does not mean solar stopped working here. It means the smart play is to use more of your own power and, for many homes, to add a battery. This page covers what Utah pays, what changed, and how to tell if your roof is a good fit.
Using NREL PVWatts and the current EIA rate, MySolarFY estimates a typical 7 kW rooftop system in Salt Lake City produces about 10,385 kWh a year (NREL PVWatts v8), which is worth roughly $1,380 a year at Utah’s 13.29 cents per kWh residential rate (EIA, April 2026). But you capture the full value only on the power you use on-site, since exports are credited near 4 to 4.9 cents, so timing your usage and storing power both raise your return.
Utah solar at a glance
Here is the short version of what drives your payback in Utah in 2026. Every figure below is sourced, and the export credit and tax-credit lines are the ones that changed. For the full price and payback breakdown by system size, see our Utah solar panel cost and payback guide.
| Detail | What to know (2026) |
|---|---|
| Dominant utility | Rocky Mountain Power (PacifiCorp), the state’s investor-owned utility |
| Residential rate | About 13.29 cents per kWh, low by national standards (EIA, April 2026) |
| Sun resource | Excellent; a 7 kW Salt Lake City system makes about 10,385 kWh a year (PVWatts) |
| Export program | Net billing (Schedule 137), not retail net metering, for new customers |
| Export credit | About 4.855 cents (June to September) and 4.033 cents (October to May) per exported kWh |
| State tax credit | Ended; the residential credit is gone for systems placed in service after 2023 |
| Federal credit | Section 25D ended for expenditures made after December 31, 2025 |
| Source | RMP Schedule 137, DSIRE |
Why solar still pays in Utah, even with cheap power
Utah’s edge is sunshine, not a high electric rate. At about 13.29 cents per kWh, Utah power is cheaper than in most states (EIA, April 2026), so you are not offsetting an expensive bill the way a homeowner in the Northeast is. What makes up for it is production: Utah’s high-desert sun means a given system generates a lot of kilowatt-hours per year, so a 7 kW system in Salt Lake City makes about 10,385 kWh a year in our PVWatts estimate. Estimate your own roof with NREL’s free PVWatts calculator; your real output depends on roof pitch, direction, and shade. The catch is what happens to the power you do not use yourself, which is where Utah’s rules changed.
The big change: net metering was replaced by net billing
This is the most important thing to understand about Utah solar in 2026. Rocky Mountain Power no longer offers full retail net metering to new solar customers. If you applied for interconnection after October 30, 2020, you go on net billing under Schedule 137, and the power you export is credited at an Export Credit Rate that is well below the retail price (DSIRE). As of the current tariff, that credit is about 4.855 cents per kWh from June through September and 4.033 cents per kWh from October through May (Rocky Mountain Power Schedule 137, effective April 25, 2025). Compare that to the roughly 13.29 cents you pay to buy power back, and you can see the gap: an exported kWh is worth about a third of a kWh you use yourself. These rates are reset periodically by the Utah Public Service Commission, so confirm the current Export Credit Rate before you sign. For the mechanics of how export credits work in general, see how net metering credits your solar exports.
What this means in plain terms: the value of Utah solar now comes mostly from the power you consume in your own home, not the power you send back. Sizing a system to your own usage and shifting big loads (laundry, EV charging, cooling) into daylight hours protects more of your savings than oversizing for export ever could. To see how offsetting your own usage lowers the bill, read how solar lowers your electricity bill.
Why batteries matter more in Utah now
A home battery lets you keep the power you would otherwise sell cheap. Because an exported kWh earns about 4 to 4.9 cents while a kWh you use is worth about 13.29 cents, storing your midday surplus and using it in the evening captures roughly three times the value of exporting it. That is a real change from the old net-metering days, when a battery was mostly about backup. In today’s Utah, storage is also an economic tool: it raises how much of your own production you actually use. A battery adds up-front cost and is not right for every home, so treat it as a payback question, not a default. For a framework on running those numbers, see our guide on whether solar panels are worth it.
Utah and federal tax credits: what is gone in 2026
Both the state and federal homeowner credits have ended, so do not count on either. Utah’s residential Renewable Energy Systems Tax Credit was placed on a phase-down schedule and is no longer available for residential systems placed in service after 2023, which means there is no state solar income-tax credit for a 2026 install (SEIA). On the federal side, the 30% 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 who buys solar with cash or a loan in 2026 cannot claim it (IRS). One federal credit still exists but is not yours to claim: Section 48E is a commercial credit that the business owning a leased or PPA system claims, not the homeowner. For the full timeline, see what the federal solar tax credit change means in 2026.
How you pay changes what you get
How you finance solar decides who owns the system and who claims any remaining benefit. This is the part of a quote worth reading closely.
| How you pay | Up-front cost | Who owns it | Export credits |
|---|---|---|---|
| Cash | Full system price | You | Credited to you |
| Solar loan | Little or none, financed over time | You | Credited to you |
| Lease or PPA | $0-up-front where you qualify | A third-party company | You still see bill credits; the company keeps ownership and any commercial credit |
If you own the system (cash or loan), you keep the export credits and any bill savings. If you lease or sign a PPA, a third party owns the panels, you get a lower or fixed power price with no up-front cost, and that company claims any commercial tax credit, not you. Neither path gives a 2026 Utah homeowner the federal residential credit, since it ended after December 31, 2025. Solar panels are not free, and a lease or PPA is a long-term contract, so compare the total cost of each path before you decide.
How to choose a solar installer in Utah
Utah has a deep, competitive installer market. Rather than chasing a “best” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Utah contractor license through the Utah Division of Professional Licensing, plus proper electrical licensing.
- A clear workmanship and equipment warranty in writing.
- Real Utah experience, verifiable reviews, and help with the Rocky Mountain Power interconnection and net-billing paperwork.
- A written production estimate and a transparent quote you can compare. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. For the statewide picture and neighboring states, see our solar incentives by state hub.
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Frequently asked questions
Does Utah still have net metering in 2026? Not the old full-retail kind for new customers. Rocky Mountain Power replaced retail net metering with net billing under Schedule 137, so power you export is credited at an Export Credit Rate well below the retail price, about 4.855 cents per kWh from June through September and 4.033 cents from October through May under the current tariff (RMP Schedule 137). Customers who interconnected under the older program may be grandfathered on better terms. Because the credit is low, the value of Utah solar now comes mostly from using your own power.
Is there a Utah state solar tax credit in 2026? No. Utah’s residential Renewable Energy Systems Tax Credit was phased down and is no longer available for residential systems placed in service after 2023, so there is no state solar income-tax credit for a 2026 install (SEIA). Always confirm the current status with the Utah Office of Energy Development before you decide.
What happened to the federal solar tax credit? The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025 under the One Big Beautiful Bill Act. A Utah homeowner who buys solar in 2026 with cash or a loan 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.
Is solar worth it in Utah if power is cheap and the credits are gone? It can be, but the case is different than it used to be. Utah’s very high sun means a system produces a lot of kilowatt-hours, and every kWh you use yourself offsets power at about 13.29 cents. The weak spot is exported power, credited near 4 to 4.9 cents, so payback depends on sizing to your own usage and, for many homes, adding a battery. Run your own numbers with a written production estimate before you commit.
Should I add a battery to my Utah solar system? For many Utah homes, storage now makes more financial sense than it did under old net metering. Because you use stored power at about 13.29 cents instead of exporting it near 4 to 4.9 cents, a battery captures roughly three times the value of that surplus. It also adds up-front cost, so weigh the payback for your usage pattern rather than treating it as automatic.
Who is my utility for solar in Utah? For most Utah homes it is Rocky Mountain Power, a PacifiCorp company and the state’s dominant investor-owned utility, serving about 1.7 million customers across six western states (U.S. DOE AFDC). Rocky Mountain Power runs the interconnection and the net-billing program you will enroll in. Some Utah homes are served by a municipal utility or co-op with its own rules, so check your bill.
Reviewed by the MySolarFY team. Figures were verified against the linked Rocky Mountain Power (Schedule 137), DSIRE, EIA, NREL, SEIA, and IRS sources as of August 2026. Export Credit Rates, incentives, and net-billing rules change and are reset periodically by the Utah Public Service Commission, so confirm current terms with 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, and Utah’s state solar tax credit has ended. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, export credits, and rates vary and are not guaranteed. See our full disclaimer.
