UtahSolar Incentives 2026: Tax Credits, Rebates & Net Metering
The 30% federal residential solar credit has ended. Under P.L. 119-21, the §25D Residential Clean Energy Credit terminated for expenditures made after Dec 31, 2025 — a system installed in 2026 cannot claim it. So the honest question in 2026 is: does solar still pay in your state without the federal credit? Run the math with $0 federal credit plus your state's incentives. Utah still has its own rules: average monthly bills of $115 and 5.5 peak sun hours per day, plus a 25% state credit (up to $400). The calculator on this page uses $0 federal credit.
State Solar Tax Credit
Utah offers a 25% state income tax credit on residential solar installations, capped at $400. The credit applies to panels, inverters, mounting hardware, and labor. It is non-refundable but can typically be carried forward to subsequent tax years if your liability in the install year is too low to absorb the full credit.
The Utah state credit does not stack with a federal residential credit on a 2026 install. That federal credit ended for expenditures made after Dec 31, 2025. On a typical $24,000 installation, the state credit alone is about $400.
Net Metering in Utah
Utah requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is a modified rate (typically retail rate minus a small grid utilization fee).
In practice, this means a properly sized Utah system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under UT net metering rules include Rocky Mountain Power, Utah Municipal Power.
Utah credits exported solar at roughly ~70–90% of retail of the retail rate. See full Utahnet metering rates & rollover rules →
Cost of Solar Panels in Utah (2026)
Solar installs in Utah average $2.80 per watt in 2026. A typical 8 kW system runs about $22,400 before incentives. The federal residential credit is $0. After the Utah state credit only, the illustrated net is about $22,000.
Your price moves with system size, roof complexity, and equipment tier. Run the Utah savings calculator for a number matched to your actual electricity bill.
Are Free Solar Panels Real in Utah?
No — there is no government program handing out free solar in Utah. “Free solar” and “no-cost solar program” ads are leases or power purchase agreements (PPAs): a company owns the panels and bills you for the power. There is no residential federal credit for a 2026 install for either you or the company to claim; a 25% state credit, if any, follows the system owner.
Buying your system — with the incentives in your name — almost always wins on lifetime savings. Read the full breakdown of “free solar” offers →
Utility Rebate Programs
2 major utilities operate in Utah: Rocky Mountain Power, Utah Municipal Power. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.
Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Utah installers will pull up-to-date rebate data during a site assessment.
Property & Sales Tax Exemptions
Utah does not currently offer a property tax exemption for solar. The added home value from a solar installation is generally included in the next assessment cycle.
Utah does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.
How Utah Compares to Neighboring States
Compare Utah's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.
How UT Incentives Work in Detail
Frequently Asked Questions
Solar Incentives by City in Utah
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See your exact Utah solar savings
Plug in your monthly bill. The calculator uses $0 federal credit plus Utah incentives — system size, net cost, payback, and 25-year savings.