Utah Solar Incentives, Cost & Payback (2026)
Written by Aditya Patil · Last updated 2026-09-24
Utah offers excellent sun exposure, but the rules for going solar have shifted. With Rocky Mountain Power switching to a Net Billing Tariff, the financial returns now strongly favor pairing your solar panels with a battery system to maximize self-consumption.
$120
Avg. monthly bill
13.37¢/kWh
Avg. rate
7.1 kW
Est. system size
for average usage
4.71
Peak sun hours
excellent irradiance
System sizing and costs in Utah
The average Utah household uses about 899.5 kWh per month, or around 10,794 kWh annually. Thanks to Utah's strong sunlight—averaging 4.71 peak sun hours per day—a typical home only needs an estimated 7.08 kW solar array to offset 100% of its annual electricity usage.
We currently don't have enough verified recent public data from the LBNL Tracking the Sun dataset to publish a reliable average cost-per-watt figure specifically for Utah. Generally, national prices hover around $3.00 to $3.50 per watt before incentives, but getting multiple quotes from local Utah installers is the best way to determine your actual costs.
Net billing (Schedule 137)
If you are a Rocky Mountain Power customer in Utah, the traditional retail net metering programs (Schedules 135 and 136) are closed to new applicants. New solar installations fall under Schedule 137 (Net Billing Service).
Under this structure, any surplus solar energy you send to the grid is credited at a reduced export rate rather than the retail rate you pay for electricity. These credits reduce your monthly power bill and roll over from month to month throughout an Annualized Billing Period. This period usually resets after your March billing cycle, at which point any unused credits expire.
Expert tip: Because exported energy is less valuable under Schedule 137, sizing a battery to store your excess daytime solar power for evening use is generally a much better financial move than relying solely on the grid.
Utah solar rebates & incentives
Utah’s historical solar incentives have largely been phased out, making it essential to look into battery incentives like the Wattsmart program and the federal tax credit.
| Program | Amount | Status |
|---|---|---|
| Wattsmart Battery Program | Up to $1,000 upfront enrollment incentive for systems smaller than 10 kW, or up to $2,000 for systems 10 kW or larger, plus an ongoing annual bill credit (typically $15 per kW starting in the second year). | open |
| Renewable Energy Systems Tax Credit (RESTC) | None (Expired for residential solar). | closed |
| Utah sales tax on residential solar — no residential exemption | None for typical homeowners. The Alternative Energy Sales Tax Exemption applies only to larger-scale commercial/industrial projects (2 MW or greater). | closed |
| Utah property tax exemption — no statewide exemption | None. Utah does not offer a statewide property tax exemption for the value added by residential solar panels. | closed |
Batteries & the Wattsmart Program
With standard solar-only setups offering lower returns under current utility rules, home batteries are taking center stage in Utah. Rocky Mountain Power offers the Wattsmart Battery Program, functioning as a Virtual Power Plant (VPP).
Wattsmart Battery Program
Rocky Mountain Power provides an upfront rebate of up to $1,000 for <10kW or $2,000 for >=10kW systems and an ongoing bill credit for allowing the utility to manage the battery for grid support.
Enrolling in this program allows the utility to dispatch your battery to support the grid during periods of peak demand. In exchange, you get an upfront rebate and ongoing annual credits, helping to significantly offset the high initial cost of energy storage.
Top utilities in Utah
Rocky Mountain Power (PacifiCorp) dominates the state, though several municipal utilities operate with their own rates and solar policies.
| Utility | Residential rate | Customers |
|---|---|---|
| PacifiCorp | 12.52¢/kWh | 947,246 |
| Provo City Corp | 11.39¢/kWh | 35,299 |
| City of St George | 11.4¢/kWh | 28,436 |
Lease vs. buy in Utah
With fewer local incentives available, deciding how to finance your system is critical. A cash purchase or loan lets you claim the 30% federal tax credit directly, provided you have sufficient tax liability. If you opt for a lease or Power Purchase Agreement (PPA), the solar company claims the credit and should pass the savings on to you via lower monthly payments. See our full lease vs. buy vs. PPA guide for more details.
Estimate your own numbers
Use our solar calculator to estimate your exact system size and potential savings based on your own usage and quotes you've received.
FAQ
Is solar still worth it in Utah?
Yes, though the transition from retail net metering to Rocky Mountain Power's Schedule 137 (Net Billing) means that you get less value for the energy you send back to the grid. To maximize your savings, combining a solar installation with a home battery has become the most effective approach in Utah, allowing you to use more of your own power instead of exporting it at a lower rate.
What solar incentives are currently available in Utah?
The primary state-level incentive is the Wattsmart Battery Program, which offers up to $2,000 upfront for battery enrollment plus ongoing bill credits. Unfortunately, Utah's Renewable Energy Systems Tax Credit (RESTC) has expired for residential solar, and the state does not offer a statewide sales or property tax exemption for solar panels. However, you can still claim the 30% federal solar tax credit.
How does Utah's net billing (Schedule 137) work?
Under Rocky Mountain Power's Schedule 137, energy you export to the grid is credited at a reduced export rate, rather than the full retail rate. These excess credits offset your power and energy charges on your monthly bill and roll over month-to-month. The credits expire at the end of the Annualized Billing Period, which typically resets in March.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil