Salt Lake CitySolar Incentives 2026: Rebates, Tax Credits & Net Metering
Salt Lake City homeowners stack the 30% federal tax credit with the 25% Utah state credit and Rocky Mountain Power net metering. At 5.3 peak sun hours a day, a home with a $85/month bill (about 607 kWh) needs roughly a 4.8 kW system — 12 panels — and pays back in about 7.9 years.
Solar Incentives Available in Salt Lake City
Solar incentives in Salt Lake City come in three layers. First, every homeowner qualifies for the 30% federal Residential Clean Energy Credit on the full installed cost, claimed on IRS Form 5695. Second, Utah adds a 25% state income tax credit (up to $400) that stacks on top. Third, Rocky Mountain Power sets the local rules for crediting the solar power you export.
Rocky Mountain Power credits exported solar at an export rate in Salt Lake City; the 30% federal credit is the main incentive as Utah's state credit phases out.
How Much Solar Salt Lake City Homes Produce
Salt Lake City gets 5.3 peak sun hours a day, so each 1 kW of panels produces about 1,548 kWh per year here. A 4.8 kW system — the size that fits a typical $85/month Rocky Mountain Power bill — generates roughly 7,428 kWh annually, worth about $1,040 in avoided electricity in year one and more as rates rise.
Rocky Mountain Power Net Metering in Salt Lake City
Rocky Mountain Power credits excess solar generation from Salt Lake City homes under Utah's modified net metering (~70–90% of retail). A right-sized system can bring net annual electricity costs close to zero. See full Utah net metering rules →
How Much Do Solar Panels Cost in Salt Lake City?
At Utah's 2026 average of $2.80/watt, the 4.8 kW system most Salt Lake City homes need runs about $13,440 before incentives. The 30% federal credit takes off $4,032, and the Utah state credit another $400 — landing the net cost near $9,008, with payback around 7.9 years.
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