Find out if solar panels are right for your home in Utah.
Since 2015, Utah has seen the construction of many utility-scale solar farms. The increase in residential solar has also been tremendous. Utah has jumped from being ranked as the 23rd state to 12th for solar nationally in just one year, 2022 to 2023.
Utah is making waves in the solar energy sector, both in utility-scale and residential installations. Major projects like the 240 MW Escalante Solar Project and the upcoming 300 MW-AC ECG Utah Solar 1 plant are putting Utah on the map for large-scale solar production.
As of 2023, Utah has installed enough solar to power over 500,000 homes. Plus, with a renewable portfolio goal aiming for 20% renewable energy by 2025, Utah's sunny days are looking even brighter.
While solar power and other renewable energy options are booming in popularity, there is much to consider. Whether you are trying to reduce your carbon footprint or your utility bills we’ll walk you through the most important factors to help you make the best energy decision.
The average price for a home solar panel system in Utah is $16,140 for a 6kW system or about $2.69 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Utah | $17,280 | $28,800 | $8,640 | $2.88 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $14,400 | $8,785 |
| 6 kW | $17,280 | $10,542 |
| 7 kW | $20,160 | $12,299 |
| 8 kW | $23,040 | $14,056 |
| 10 kW | $28,800 | $17,570 |
Unfortunately, nothing is perfect - including solar. To avoid buyer's remorse, you should think about all the pros and cons associated with installing solar equipment on your home. Then weigh them against each other to decide if it makes sense for you.
Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.
Overall Utah is a great state to get solar but we will give the caveat that it will highly depend on where you live. Utah's landscape is a stunning mix of natural wonders, from arid deserts to lush forests and towering mountain ranges.
The southern regions get plenty of sunshine year-round, maximizing solar panel efficiency. Even in the northern parts, the sunny days can contribute to a solid solar output. Plus, with net metering available through Rocky Mountain Power, residents can get credited for the excess energy they generate. This can offset electricity costs and make solar an economically smart choice.
This doesn’t come without challenges of course. Permitting and interconnection rules and regulations are lagging behind demand and technology.
Utah residents can expect a payback period from 10 to 12 years on their solar investment only half the expected life of a system. That’s right, solar panels on average last over 20 years!
While solar is a viable option for Utah residents, make sure to do due diligence on the logistics in your area for installation.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Utah. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Utah residents have some pretty sweet incentives to go solar. First up, the Federal Solar Investment Tax Credit (ITC) gives you a 30% credit on your income tax for your solar system cost, averaging around $6,432 in savings. Then there's Rocky Mountain Power's Wattsmart Battery Program, offering $400 per kW of battery installed, with an average rebate of about $4,000 for two batteries, if you decide to get batteries with your solar.
Then, Net Metering, which credits your electricity bill for any extra power you send back to the grid. The savings here can vary but are definitely worth it. On the local level, cities like St. George and Murray City offer full retail rate credits for net energy metering, making solar even more appealing.
But that’s not all! Rocky Mountain Power's Wattsmart program also caps rebates at 30 kW, meaning you could get up to $12,000 back. With Utah's goal to hit 20% renewable energy by 2025, these incentives aren't just pocket-friendly; they're also aligned with the state's green ambitions.
This table shows the available incentives in Utah. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.
| Name | State | Category | Type |
|---|---|---|---|
| Renewable Energy Systems Tax Credit (Personal) | UT | Financial Incentive | Personal Tax Credit |
| Clean Fuel Vehicle Tax Credit - Personal | UT | Financial Incentive | Personal Tax Credit |
| Renewable Energy Systems Tax Credit (Corporate) | UT | Financial Incentive | Corporate Tax Credit |
| Moab - Green Power Community | UT | Regulatory Policy | Green Power Purchasing |
| Clean Fuel Vehicle Tax Credit - Corporate | UT | Financial Incentive | Corporate Tax Credit |
| Clean Fuel Grant Program | UT | Financial Incentive | Grant Program |
| Clean Fuel Tax Exemption and Certificate | UT | Financial Incentive | Sales Tax Incentive |
| Net Billing | UT | Regulatory Policy | Net Metering |
| Interconnection Standards | UT | Regulatory Policy | Interconnection |
| Salt Lake City - Green Power Purchasing | UT | Regulatory Policy | Green Power Purchasing |
Renewable Energy Tax Credit (RESTC): The residential Solar PV tax credit is phasing out and currently (installations completed in 2023) the tax credit is calculated as 25 percent of the eligible system cost or $400, whichever is less for installations on residential dwelling units.
Rocky Mountain Power (PacifiCorp) Wattsmart Battery Program:
Local Incentives: Various rebates and perks provided by individual utility providers, municipalities, and other local entities. Examples include the City of St. George Net Energy Metering and Murray City Power NEM Program, both offering full retail rate credits.
There are hundreds of solar companies in Utah. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
Utah's has an ambitious plan to achieve net-100% renewable energy by 2030 through a unique program called the Community Renewable Energy Program. Initiated in 2019 with the passage of HB411, this program allows communities within Rocky Mountain Power's service area to opt into a collective effort to boost renewable energy. The program is a first of its kind, involving a collaboration between a monopoly investor-owned utility and various communities.
The plan is still in its early stages. But, 15 communities, including Salt Lake City and Castle Valley, are already on board. These communities make up about 37% of Rocky Mountain Power's electricity sales. If successful, the program could double Utah's solar grid capacity. The timeline for the program is pretty detailed, from rate design in 2021-2022 to the construction of new renewable energy sources from 2023 to 2024. There's also a focus on affordability and a provision for a low-income plan committee to ensure equitable access to renewable energy.
So, it's not just about going green; it's about doing it in a way that involves and benefits as many communities as possible.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Utah decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Utah can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Utah is $16,140 for a 6kW system or about or about $2.69 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
When it comes to solar panels, you've got two main types of solar panels to consider. Monocrystalline panels are the top dogs in efficiency and have a sleek design, but they'll cost you a bit more. Polycrystalline panels are a more budget-friendly option but offer lower efficiency. So whether you're going for max efficiency or are on a budget, there are options for you.
Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.
Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There's is a lot that can go wrong, posing a potentially deadly hazard.
Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.
Utah, getting a solar permit is pretty straightforward but can vary depending on your local jurisdiction.
Typically, you'll need to submit a permit application to your local building department, which usually includes site plans and system specs. Some cities have streamlined this process to encourage solar adoption. It's always a good idea to consult your local building department for the nitty-gritty details like required documentation and fees.
If you're working with a solar installation company, they often handle the permitting process for you.
Salt Lake City Building Services
West Valley City Building Services
City of Provo Permitting & Licensing
