Utah Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 35.9 kW system using the historical observed average cost in Utah is $156,883. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $7,712.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗Utah State Program Snapshot
Net Billing (transitional)
Net MeteringExport credit at reduced rate through Rocky Mountain Power
Utah transitioned from net metering to net billing. Export credits are at a reduced rate, though grandfathered systems keep prior terms.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
Tax Exemptions
property tax Exemption
Residential solar energy systems are exempt from property tax increases for the first year after installation.
sales tax Exemption
Utah does not exempt solar equipment from state sales tax (4.85%).
Utility Programs
Rocky Mountain Power
- Net billing
- Wattsmart battery program
- Schedule 137 export credit
Highlights & Drawbacks
Highlights
- ✓Excellent solar resource
- ✓Low installation costs
- ✓Active installer competition
Drawbacks
- !Net metering transitioning to less favorable net billing
- !No sales tax exemption
- !Low electricity rates
- !Limited property tax exemption
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.