Solar in Utah: Excellent Sun, Evolving Net Metering

Utah is one of the sunniest states in America. Salt Lake City, Provo, and St. George all get more annual sunshine than most of the country, and the high desert climate means less humidity and cloud cover eating into production. The raw solar resource here is excellent.

The challenge in Utah is not sunlight — it is Rocky Mountain Power and the evolving net metering landscape. Here is the full picture for 2026.

The Good News

Outstanding Solar Production

Utah averages 5.2-6.2 peak sun hours per day depending on location. St. George in the south rivals Arizona. Even the Wasatch Front (Salt Lake City to Provo) gets 5.0-5.5 hours. A typical 8 kW system in Utah produces 11,500-13,000 kWh per year — well above the national average.

More production means more savings per dollar invested in panels. This is Utah's core advantage.

Competitive Installation Costs

Utah has a mature and competitive solar installer market. Costs run $2.60-$3.00 per watt, below the national average. A typical 8 kW system costs $20,800-$24,000. Several large and reputable installers are based in Utah, which keeps prices competitive.

State Sales Tax Exemption

Utah exempts solar energy systems from state sales tax (4.85% state rate, plus local). On a $22,000 system, that saves roughly $1,100-$1,400 depending on your local rate. This applies automatically at the point of sale.

Growing EV Adoption

Utah's EV adoption rate is climbing, and solar-plus-EV is one of the strongest financial combinations available. Charging an EV with solar instead of grid power can save $800-$1,200 per year on fuel costs, dramatically improving total solar ROI.

The Challenges

No Federal Tax Credit

The 30% ITC expired January 1, 2026. For a $22,000 system, that is $6,600 lost. Utah no longer has a state tax credit either — the old $1,600 state credit was reduced and eventually phased out.

Rocky Mountain Power Net Metering Changes

This is the big story in Utah solar. Rocky Mountain Power (a PacifiCorp subsidiary), which serves the vast majority of the state, fought hard to change net metering terms. Under the current Export Credit Rate (ECR) structure, excess solar energy sent to the grid is credited at a rate significantly below the full retail rate — typically $0.04-$0.06/kWh compared to a retail rate of $0.11-$0.13/kWh.

This is a major hit to solar economics. Under full retail net metering, every exported kWh was worth $0.12. Under the ECR, that same kWh is worth $0.05. If you export 35-40% of your production, the reduction in annual savings is substantial.

Homeowners who installed under the older net metering agreement were grandfathered for a transition period. New installations in 2026 are on the ECR schedule.

Moderate Electricity Rates

Utah residential rates average $0.11-$0.13/kWh — below the national average. Combined with the low export credit, the per-kWh economics are modest.

The Utah Solar Math (2026)

Typical 8 kW system:

• Installed cost: $22,400 ($2.80/watt)
• Federal ITC: $0 (expired January 1, 2026)
• State tax credit: $0
• Sales tax savings: ~$1,100
• Net cost: ~$21,300

Annual production: ~12,000 kWh

Average retail rate: $0.12/kWh

Export credit rate: ~$0.05/kWh

Self-consumption ratio: 60%

Annual savings (self-consumed): 7,200 kWh x $0.12 = $864

Annual credit (exported): 4,800 kWh x $0.05 = $240

Total annual benefit: ~$1,104

Payback period: ~19.3 years

25-year savings: $10,000-$18,000

Without the federal credit and with the low export rate, the payback is long. Increasing self-consumption to 75-80% (via load shifting or a battery) improves the payback to 15-16 years. If Utah electricity rates increase 4% annually, the payback could drop to 13-15 years.

Utah's competitive installer market means pricing varies — comparing multiple proposals is the best way to shave cost in a state where every dollar matters for the payback math.

When Solar Makes Sense

Install if:

• You have high daytime electricity usage (work from home, EV charging, pool pump)
• You are in southern Utah with 5.5+ peak sun hours
• You can pair solar with an EV for combined transportation and electricity savings
• You can maximize self-consumption through smart scheduling or a battery
• You plan to stay in your home 12+ years

Wait or skip if:

• Your electricity bill is under $100/month
• You export a high percentage of production with no way to shift usage
• You are expecting a quick payback (under 10 years) — the math does not support it currently
• You are on a municipal utility with no solar credit program

Key Takeaways

• Outstanding sun (5.2-6.2 peak hours) means Utah systems produce more than most states
• Rocky Mountain Power's export credit rate of $0.04-$0.06/kWh is well below retail — self-consumption is critical
• No federal or state tax credits as of 2026 leaves the sales tax exemption as the only direct incentive
• Competitive installation costs ($2.60-$3.00/watt) help offset the incentive gap
• Payback of 15-19 years depending on self-consumption and rate increases
• Solar-plus-EV is one of the strongest combinations in Utah
• Battery storage helps shift exported power to evening self-use, improving returns — the Tesla Powerwall is a popular pairing for Rocky Mountain Power customers looking to minimize low-value exports

Utah is a state where the sun is on your side but the utility structure is not. The path to making solar work here is maximizing self-consumption — use your solar power directly, charge your EV during the day, and minimize what you send back to the grid at the low export rate. If you can do that, the economics improve substantially.

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