Utah Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Utah homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $15,900 in Utah, that's a direct tax credit of $4,770. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

Utah does not currently offer a state-level solar tax credit. However, Utah homeowners still benefit from the substantial 30% federal ITC, worth $4,770 on a typical 6kW system. Even without a state credit, solar is economically attractive in Utah with electricity rates averaging 13.07¢/kWh.

Utah does not currently offer a statewide property tax exemption for solar installations. This means the added home value from solar panels may increase your property tax assessment. Some local jurisdictions may offer their own exemptions — it's worth checking with your county tax assessor. Even without this exemption, the energy savings from solar typically far outweigh any marginal property tax increase.

Utah does not currently exempt solar equipment from state sales tax. This means you'll pay the applicable sales tax on your solar system purchase. However, the 30% federal ITC and other available incentives more than compensate for this cost in most cases.

Net metering policy: Net Billing (Reduced Rate). Net billing tariff replaced net metering; export credit ~$0.05-0.06/kWh The current system size cap is 25 kW.

Under Utah's net billing policy, excess solar energy sent to the grid is credited at a rate lower than the retail price. This means it's important to maximize self-consumption — use major appliances during peak solar hours and consider adding battery storage to capture excess generation for evening use.

Utah has a voluntary Renewable Portfolio Standard (RPS) target of 20% by 2025 (voluntary goal). While voluntary, this goal signals the state's commitment to growing its renewable energy capacity. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.