Solar panels installed on a residential home in Utah

Solar Panel Cost in Utah

Updated 2026 guide to solar panel prices, savings, and payback period in Utah.

Estimated Solar Savings

$2.75Cost Per Watt
$16,500Avg. System Cost
7Year Payback
$33,00025-Year Savings

Solar Panel System Costs in Utah

Below are estimated costs for different solar panel system sizes in Utah, including the 30% federal solar tax credit.

System SizeCost Before IncentivesFederal Tax Credit (30%)Net CostEst. Annual Production
4 kW$11,000-$3,300$7,7008,030 kWh
6 kWMost Popular$16,500-$4,950$11,55012,045 kWh
8 kW$22,000-$6,600$15,40016,060 kWh
10 kW$27,500-$8,250$19,25020,075 kWh
12 kW$33,000-$9,900$23,10024,090 kWh

What Affects Solar Panel Cost in Utah?

The average cost of solar panels in Utah is $275/watt before incentives. For a typical 6kW residential system, that means a total cost of about $16,500 before the federal tax credit.

After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $11,550.Utah homeowners typically see a payback period of 7 years and save an estimated $33,000 over 25 years.

Utah solar costs have decreased roughly 43% over the past decade. Strong sunshine, state tax credits, and a competitive market make Utah a top solar state.

Factors that affect your cost:

  • System size: Larger systems cost more but have a lower cost per watt
  • Equipment quality: Premium panels and inverters cost more but offer better efficiency
  • Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
  • Local labor rates: Installation costs vary by region within Utah
  • Incentives: State and local programs can significantly reduce your out-of-pocket cost
Beautiful home with solar panels in Utah demonstrating residential solar installation

Solar Incentives in Utah

Federal Solar Investment Tax Credit

30% Federal Tax Credit (ITC)

Utah homeowners can claim the 30% federal ITC along with a state tax credit for solar installations.

30%

State & Local Incentives

Utah Renewable Energy Systems Tax Credit

Tax Credit

Utah offers a state income tax credit for residential solar energy systems.

25% of system cost, up to $800

Sales Tax Exemption

Sales Tax

Utah exempts solar panels and related equipment from sales tax.

100% sales tax exemption on solar equipment

Net Metering

Utah offers net metering through Rocky Mountain Power. The state is transitioning to a new rate structure for solar customers, with ongoing regulatory proceedings.

Available

SRECs

Utah does not have an SREC market. The state's goal is to achieve 20% renewable energy by 2025.

Not Available
View all Utah solar incentives →

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Top Solar Companies in Utah

Affordable Solar Roof & Air

4.9(721 reviews)

Years in Business: 14

Service Area: Salt Lake City

Phone: (800) 515-1254

Sunergy Solutions LLC

4.9(146 reviews)

Years in Business: 6

Service Area: Salt Lake City

Phone: (603) 289-1090

Green Power Energy

4.8(406 reviews)

Years in Business: 17

Service Area: Salt Lake City

Phone: (855) 525-1675

Blue Raven Solar

4.5(1983 reviews)

Years in Business: 10

Service Area: Utah

Phone: (844) 442-5029

Smart Wave Solar

4.5(204 reviews)

Years in Business: 7

Service Area: Utah

Phone: (801) 944-7775

View all Utah solar companies →

Solar Panel Cost FAQ - Utah

The cost of solar panels in Utah typically ranges from $2.50 to $3.50 per watt before incentives. For a standard 6 kW residential system, homeowners in Utah can expect to pay between $15,000 and $21,000 before the federal tax credit. After applying the 30% federal Investment Tax Credit, the net cost drops to approximately $10,500-$14,700. Actual costs vary based on your specific roof, chosen equipment, and installer. We recommend getting at least three quotes from local Utah solar installers to find the best price.

The average solar payback period in Utah depends on local electricity rates, available incentives, and sun exposure. Most Utah homeowners see a payback period between 6 and 10 years. After the payback period, you essentially enjoy free electricity for the remaining 15-20+ years of your system's life. Higher local electricity rates and additional state incentives can shorten the payback period significantly. A qualified Utah solar installer can calculate your specific payback period based on your energy usage and roof characteristics.

Utah homeowners who install solar panels typically save between $20,000 and $50,000 over 25 years, depending on system size, electricity rates, and available incentives. These savings come from reduced or eliminated electricity bills, net metering credits, and any applicable SREC income. As electricity rates in Utah continue to rise (historically averaging 2-3% annually), your savings grow each year. The combination of the 30% federal tax credit and any Utah-specific incentives helps maximize your return on investment.

The right solar system size for your Utah home depends on your electricity consumption, roof space, and budget. The average Utah home uses approximately 10,000-11,000 kWh per year, which typically requires a 6-8 kW solar system. To determine your ideal size, review your annual electricity usage on recent utility bills. Factors like Utah's average peak sun hours, your roof orientation, and any shading will affect how many panels you need. A professional Utah solar installer will use satellite imagery and your usage data to recommend the optimal system size.

Yes, solar is generally worth the investment for Utah homeowners in 2025. With solar panel costs at historic lows, the 30% federal tax credit still available, and electricity rates continuing to rise, the financial case for solar in Utah is strong. Most Utah homeowners who go solar see positive returns within 6-10 years, followed by 15-20+ years of significant savings. Additionally, solar panels increase your home value, provide energy independence, and protect against future electricity rate increases. The best way to determine if solar is right for your Utah home is to get a free, customized quote from a qualified local installer.

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30%Federal Tax Credit
25+Year Savings
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