Utah Solar Overview
Utah's solar incentive story has evolved, and not always in homeowners' favor. Full retail net metering ended in 2017, and the replacement net billing rates have declined with each recalculation. The state income tax credit (RESTC) for residential solar was phased out, with systems installed from 2024 onward receiving a $0 credit. The federal ITC expired December 31, 2025.
What remains in Utah's favor: the state has some of the most abundant solar resources in the country, with 5 to 7 peak sun hours per day in many regions. Check with the Utah State Tax Commission whether sales tax applies to residential solar equipment. And a property tax exemption ensures your installation won't increase your annual property tax bill.
The central challenge for Utah solar in 2026 is the net billing export rate. At approximately 4 to 5¢/kWh, Rocky Mountain Power pays less than one-third of the retail rate for electricity you send to the grid. This fundamentally changes system design: the highest-value strategy is to maximize self-consumption rather than maximize system size and exports.
Net Billing, Three Tiers Based on Install Date
Utah uses net billing, not traditional net metering. What you receive for excess solar generation depends entirely on when you signed your interconnection agreement with Rocky Mountain Power. Three schedules are active:
Schedule 135, Closed
Installed before Nov 15, 2017
Grandfathered through 2036
Credits reset each March
Schedule 136, Closed
Installed Nov 15, 2017, Oct 30, 2020
Still receiving near-retail credit
Schedule 137, Active
Summer: 4.855¢/kWh
Winter: 4.033¢/kWh
Recalculated every March 1
All new solar installations fall under Schedule 137. The rate reflects Rocky Mountain Power's avoided cost, not the retail rate. Netting is instantaneous: you receive credit only for energy exported in real time, valued at the export rate rather than the retail rate. Unused credits carry forward monthly and expire each March.
At 4.855¢/kWh export credit vs. 13.12¢/kWh retail, each kWh you self-consume is worth 2.7x more than each kWh you export. A well-timed dishwasher, EV charge, or pool pump run during peak solar hours dramatically outperforms over-producing a large system. Demand response, battery storage, and smart load-shifting are valuable companions to solar in Utah.
| Schedule 137 Feature | Detail |
|---|---|
| Summer export rate (Jun to Sep) | 4.855¢/kWh (eff. March 1, 2026) |
| Winter export rate (Oct to May) | 4.033¢/kWh (eff. March 1, 2026) |
| Rate recalculation | Annually every March 1 |
| Netting method | Instantaneous (real-time export only) |
| Credit banking | Excess credits carry over month to month; unused credits expire at the March meter reading each year |
| System size cap | 25 kW residential (2 MW non-residential) |
State Tax Incentives
Renewable Energy Systems Tax Credit (RESTC), Expired for Solar
Utah's state income tax credit for residential solar photovoltaic systems, established under Utah Code § 59-10-1014, was phased out over several years as the legislature lowered the annual cap:
| Installation Year | Max Residential Solar Credit |
|---|---|
| 2017 | $2,000 |
| 2018 to 2020 | $1,600 |
| 2021 | $1,200 |
| 2022 | $800 |
| 2023 | $400 |
| 2024 and beyond | $0, No longer available for solar PV |
Non-photovoltaic renewable systems (geothermal, wind, micro-hydro) remain eligible through January 1, 2028, with a credit of 25% of installation cost up to a $2,000 maximum. Commercial solar retains a 10% credit capped at $50,000. Source: Utah Governor's Office of Energy Development (energy.utah.gov).
Sales Tax Exemption, Active
Sales tax treatment of residential solar equipment is set by Utah Code § 59-12-104. Confirm with the Utah State Tax Commission or your installer whether state and local sales tax applies to your purchase.
Property Tax Exemption, Active
Solar energy systems are exempt from property tax assessment in Utah. The value added to your home by a solar installation is not included in your property's assessed value, which means your annual property tax bill will not increase due to the system. This is a permanent benefit that compounds over the lifetime of the installation.
Even without the RESTC and ITC, Utah's sales tax exemption and property tax exemption provide real, ongoing value. The property tax exemption alone can save $200 to $500 per year depending on your home's value and local mill levies, adding up to $5,000+ over a 25-year system lifetime.
Payback Analysis (2026)
Utah's excellent solar resource, among the best in the Mountain West, partially compensates for the thin incentive environment. A well-designed, right-sized system can still deliver reasonable economics, particularly for households with high daytime electricity use that can maximize self-consumption.
Adding battery storage paired with smart load-shifting can meaningfully improve this estimate by increasing self-consumption. The RMP Wattsmart Battery program offers $1,000 to $2,000 incentives for qualifying battery installations, further improving the economics when paired with solar.
Rocky Mountain Power Battery Incentive
Rocky Mountain Power's Wattsmart Battery program offers a direct incentive for home battery storage paired with time-of-use rates. This is one of the few remaining active utility incentive programs in Utah for residential energy customers.
| System Size | Upfront Incentive | Requirement |
|---|---|---|
| Under 10 kW battery | $1,000 | Enrollment in TOU or time-of-day rate |
| 10 kW+ single battery | $2,000 | Enrollment in TOU or time-of-day rate |
Battery storage paired with solar allows you to store midday excess production (which would otherwise export at 4¢/kWh) and use it during evening hours (worth the full 13¢ retail rate), dramatically improving the economics of a Utah solar installation.