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Here’s a quick look at the estimated cost of solar in Utah:
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit. **Payback period is calculated assuming the system is purchased in cash.
By Karsten Neumeister, Solar Expert
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As a homeowner in Utah, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.
Looking to go solar, but want to know more about the average cost of solar panels in Utah? In this article, we’ll go over solar panel pricing in the Beehive State and show you how to save money on your home’s installation.
The figures we use in this article are averages, but solar costs can change significantly based on your home’s configuration and your household energy needs.
To get an accurate, free estimate of what it would cost to put solar panels on your roof, you can get a quote below or to be connected to a certified installer near you.
Here is a list of preferred partners in this area.
The good news for residents of Utah is that the cost of solar panels in the state is on par with the national average. Based on market research and data from top solar brands, we’ve found the average cost of solar panels in Utah to be $2.68 per watt, while the national average stands at $2.66.
At $2.68 per watt, a typical 5-kilowatt (kW) system would cost $9,904 after the federal solar tax credit is applied. A price tag under $10,000 for a residential solar system is usually considered excellent. For pricing of solar power systems between the 5 kW to 10 kW (which are the most common system sizes for residential installations), take a look at the chart below.
While the numbers in the table are reliable, they are based on the average cost per watt and hence only indicate approximate system prices. The best way to get the correct pricing for your home is to contact nearby installers. We recommend getting several free quotes before selecting the best solar company for your project.
Consulting installers near you not only gets you a more accurate price range, but also several other important numbers such as your projected solar payback period, your net return on investment and more. These can prove to be key indicators of whether solar panels are worth it for your home.
The solar equipment, financing option and installation company you select will all determine the cost of your solar panel system in Utah.
Utah residents are also eligible for the federal solar tax credit and Utah’s 2001 Renewable Energy Systems Tax Credit (RESTC), which can drastically reduce the cost of your solar panels. Other incentives and net metering programs available in Utah can also help pay off a large portion of your system.
The location and climate of where you live largely influence the solar equipment you should choose. An abundance of sunny, clear days in the Utah summer offers great conditions for solar panels.
This means that most residents can generate the energy they require with an older model of solar panel, rather than splurging on the latest and greatest solar technology. This can help keep average prices lower than less sunny states.
Remember that if your roof space is limited, you may still have to opt for more expensive, high-efficiency solar panels. The number of panels that can fit on your roof is an often overlooked factor in choosing the right equipment.
Utah does receive snow, and some snow on your solar panels isn’t a problem. In fact, some snow or rain can actually help brush off debris, making your panels more efficient.
However, excessive snow or extreme weather conditions can put your panels at risk of damage. If your area receives an abundance of snow and ice, we recommend that you opt for a panel with high snow load ratings and a comprehensive warranty that will cover any weather-related damage.
Utah residents enjoy solar incentives like the federal solar tax credit and Utah’s renewable energy system tax credit. Here’s what Utah can offer when it comes to financing the rest of your system.
For homeowners with a good credit score, you may qualify for a home equity line of credit (HELOC) to secure a low interest rate for a solar loan. Solar installers, some banks and credit unions offer solar-specific loans as well.
Admiral’s Bank, GoldenWest Credit Union and LRB Financial are some participating institutions in Utah that offer solar loans. Learn more about solar financing options in Utah here .
Utah is a top state in the U.S. for solar energy, so there are plenty of solar companies to choose from. But what many readers don’t realize is that the prices for a solar installation can vary wildly from installer to installer, even if you get quotes for identical systems.
This variation stems from differences in labor, distance and the quality of the workmanship, warranties and backend support that you’ll receive. This is why we always recommend getting as many quotes as you can.
Take a look at our top brand highlights below, and read more on our top solar companies in Utah page.
Make sure to be aware of these considerations and costs before your start your solar installation project in Utah:
When considering the cost of solar panels in Utah, it helps to take into account the financial incentives available to residents. Here’s an outline of the major solar incentives in Utah:
The availability of solar panels will vary based on your installer, but here are the most common solar brands we’d expect you to encounter in Utah, as well as their relative prices.
Do you want to know how much solar panels would cost for your Utah home? Select one of our top providers below to get a free, no-obligation quote based on your household’s energy needs.
Here is a list of preferred partners in this area.
Utah is a good state for solar, enjoying more sunny days than the national average, a falling cost of solar and both statewide and national tax credits. This has made residential solar panel installations more prevalent every year for the past decade.
Solar’s popularity in the state is a double-edged sword, as it means that the government doesn’t have to incentivize solar for its residents to make the switch. The state is phasing out its renewable energy tax credit by 2024, and its net metering has suffered in recent years.
These two policies still provide excellent value for residential solar installations, so if you’re considering going solar in Utah, we encourage you to do so before the state’s tax credit phases out.
Going solar is certainly not right for everyone, so make sure to consult with a solar contractor and weigh your options before you make the switch.
Your system’s capacity and size, as well as the angle, shading and orientation of your roof, will determine how much energy you can get from your solar panels in Utah.
In general, however, Utah receives plenty of sunlight annually to power most homes with solar panels. If you can fit an 8 kW system on your roof, the average size needed in Utah, you should have no trouble generating around 1,000 kWh in a month (about 35 kWh per day). This would be enough to offset the energy use of most homes in the state.
However, you should talk with your solar contractor to learn exactly how much energy you would be able to generate from your home, and what equipment they think would best suit your needs.
Utah’s first solar policy came about in 1979 when the state passed its solar easement regulations. These laws ensured that homeowners had legal access to sunlight by creating legally binding agreements with their neighbors. 2
The first financial solar incentive in Utah came around in 2001, when the state created the renewable energy systems tax credit, allowing property owners installing solar to claim 25% off of their solar equipment and installation cost. However, the credit is decreasing by $400 each year and is set to expire in 2024.
Utah’s net metering policy, which was established in 2002, is still active. It’s offered by Rocky Mountain Power, the main provider in the state.
The program allows solar users to be reimbursed for the excess energy that their solar panels produce. Rates aren’t great for the consumers, however, who are only reimbursed for about half the retail value of the excess energy they send back to the grid.
The state also provides several incentives to encourage commercial solar production, like the 2004 Alternative Energy Sales Tax Exemption.
Overall, we expect Utah’s solar industry to continue growing for the foreseeable future. However, installations could slow if the state ends its net metering program outright and does not extend its statewide tax credit.
At EcoWatch, we’re happy to get questions about the process and costs of getting rooftop solar from Utah residents. Below are some of the questions we see most often, along with our responses. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.
Multiple studies have shown that having solar panels on a home increases its value, which makes sense considering the fact that solar panels can save thousands of dollars in power bill savings over decades.
A Zillow study showed that on average, solar panels increase property value in the U.S. by 4.1%.3 Other studies have shown similar property appreciation with solar panels.
Although solar panels succeed in eliminating a portion of your energy costs, the equipment itself is not free. However, residential solar panels have witnessed a whopping 64% reduction in prices since 2010. Additionally, the panels pay themselves off in a few years and save a significant amount over their lifetime, making them a highly profitable investment.
If you hear of a company offering “free solar panels,” it’s likely a marketing tactic to get you to sign a solar lease or power purchase agreement. However, the amount you pay for your lease (plus your monthly utility bill) may not be less than what you were paying each month before you installed your system.
The Utah Renewable Energy Systems Tax Credit (RESTC) is an incentive created by the Utah Office of Energy Development to promote clean energy technologies. Any residential or commercial entity that installs one of the eligible renewable energy systems can avail of the tax deduction.
The incentive covers solar photovoltaic (PV), wind, geothermal, hydro, biomass, and certain renewable thermal technologies. However, this credit is phasing out. As of 2022, residential customers can claim 25% of their system cost, or $800, whichever is lower. The value decreases to a maximum of $400 in 2023, and the program will end in 2024.
Commercial solar customers can claim a deduction of 10% of the solar project cost, or $50,000, whichever is lower.
When you consider the combined effect of the federal solar tax credit and the RESTC, the Utah solar panel costs drop notably.
Aniket Bhor is a solar engineer who has spent nearly a decade studying and working in the solar power sector in the European, Asian, and North American markets. He is a climate enthusiast and avid cyclist, and he also loves to lose himself in books and cooking.
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