Solar panels in Utah: cost, payback and the rules that matter
Utah homes pay 13.2¢ per kWh for electricity, the 48th highest of 51, up 3.4% in a year. A typical home needs 15 panels. With no federal tax credit they pay for themselves in about 14.3 yrs.
Four facts that decide solar in Utah
1. The sun. One kilowatt of panels makes about 1,587 kWh a year in the median Utah city, from 1,554 in Logan to 1,779 in St. George.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 13.2¢ in Utah today.
3. What your utility pays for exports. Most Utah utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. We don't know of a statewide income-tax credit for home solar in Utah.
Utah's homes
1,124,822 households; 70.2% own their home. 737,251 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1992; 16.8% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific Utah home
Solar in every Utah city with 50,000+ people
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| Salt Lake City | 5.6 | 1,581 | 37° | 6.3 | 14.3 yrs | 23.5 yrs | 9.9 |
| West Valley City | 5.6 | 1,583 | 36° | 6.3 | 14.3 yrs | 23.5 yrs | 9.9 |
| West Jordan | 5.6 | 1,586 | 36° | 6.3 | 14.3 yrs | 23.5 yrs | 9.9 |
| Provo | 5.7 | 1,606 | 37° | 6.3 | 14.1 yrs | 23.3 yrs | 9.7 |
| St. George | 6.4 | 1,779 | 35° | 5.5 | 12.8 yrs | 20.8 yrs | 8.8 |
| Lehi | 5.6 | 1,594 | 37° | 6.3 | 14.2 yrs | 23.4 yrs | 9.8 |
| Orem | 5.6 | 1,602 | 37° | 6.3 | 14.2 yrs | 23.3 yrs | 9.8 |
| Sandy | 5.6 | 1,587 | 37° | 6.3 | 14.3 yrs | 23.5 yrs | 9.9 |
| Ogden | 5.5 | 1,566 | 37° | 6.3 | 14.5 yrs | 23.7 yrs | 10.0 |
| South Jordan | 5.6 | 1,587 | 36° | 6.3 | 14.3 yrs | 23.5 yrs | 9.8 |
| Layton | 5.5 | 1,571 | 37° | 6.3 | 14.4 yrs | 23.6 yrs | 10.0 |
| Eagle Mountain | 5.6 | 1,602 | 36° | 6.3 | 14.2 yrs | 23.3 yrs | 9.8 |
| Millcreek | 5.6 | 1,584 | 37° | 6.3 | 14.3 yrs | 23.5 yrs | 9.9 |
| Herriman | 5.6 | 1,590 | 36° | 6.3 | 14.3 yrs | 23.4 yrs | 9.8 |
| Saratoga Springs | 5.6 | 1,600 | 37° | 6.3 | 14.2 yrs | 23.4 yrs | 9.8 |
| Taylorsville | 5.6 | 1,584 | 37° | 6.3 | 14.3 yrs | 23.5 yrs | 9.9 |
| Logan | 5.5 | 1,554 | 37° | 6.3 | 14.6 yrs | 23.8 yrs | 10.1 |
| Murray | 5.6 | 1,585 | 37° | 6.3 | 14.3 yrs | 23.5 yrs | 9.9 |
| Draper | 5.6 | 1,589 | 37° | 6.3 | 14.3 yrs | 23.4 yrs | 9.8 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the Utah average home. $3.00/W, cash, 25 years.
Rule changes that affect Utah
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
- Utah: Utah allows small plug-in “balcony” solar without utility approval · Programs
Questions about solar in Utah
How much do solar panels cost in Utah?
A 6.3 kW system, the size the average Utah home needs, costs about $15,750 to $23,625 before incentives in 2026.
Is solar worth it in Utah?
In the median Utah city, solar pays for itself in about 14.3 yrs if exported power earns the retail rate, or 23.5 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in Utah?
We know of no statewide income-tax credit for home solar in Utah; utilities and cities sometimes offer rebates. The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a Utah home need?
About 15 panels of 420 watts for the state-average 774 kWh a month. Sunnier cities need fewer: St. George gets 1,779 kWh per kW a year, Logan 1,554.