Ask any homeowner in Utah what’s stopping them from going solar, and you’ll almost hear the same thing: The upfront cost. And that’s understandably so, especially when that five-figure quote is staring you in the face Fortunately, that’s where Utah solar incentives come in to help you shave thousands off what you’d otherwise shell out. Better yet, most of these benefits stack, meaning you’re not just relying on one discount, but layering several together to make solar way more affordable than it looks at first glance. In this article, I’ll break down Utah’s current solar incentives and how they can work in your favor.
Utah Solar Incentives 2025
Residential Clean Energy Credit
The Residential Clean Energy Credit is a federal tax credit worth 30% of your total solar installation cost – including panels, inverters, labor, and even batteries.
This is arguably the most generous solar incentive available today. If your system costs $20,000, you’ll cut $6,000 straight off your tax bill. For emphasis, this is not a deduction or rebate, but a direct credit against taxes you owe.
To claim this incentive, you must file IRS Form 5695 with your federal tax return.
Keep in mind, however, that how much you can claim in a given year depends on your tax liability. The good news is that if your tax liability is lower than the credit, you can carry forward the remaining credit in future years.
The federal solar tax credit is available to all U.S. homeowners through at least 2032 under the Inflation Reduction Act.
Net Metering in Utah
Net metering (or in some cases, net billing) is a utility billing program that lets you earn credit for the extra solar power your home sends back to the grid.
Here’s a bit of context: Most people use the most electricity after sunset, right when your solar panels stop producing. Net metering helps bridge that gap. Your overproduction during sunny hours doesn’t go to waste, but rather, gets banked as credits that help cover your nighttime and cloudy-day usage.
Essentially, it’s like trading your unused daytime electricity for future bill savings.
Now that that’s out of the way, the question then becomes: How much credit can you actually earn from it? It depends largely on your utility provider’s net metering policies.
- Rocky Mountain Power (RMP): Uses net billing, where excess energy is credited at the utility’s avoided-cost rate (between 4 to 6¢/kWh, depending on the billing month)
- Provo Power: Uses net billing, where they compensate excess solar generation at a fixed export rate of 6.7 cents per kilowatt-hour (kWh).
- Murray City Power: Offers net metering, where every kWh you export is credited at the retail rate (1 to 1 net metering).
- City of St. George: Also on net billing. You’re paid for excess energy at wholesale market rates, not retail. Exact fees are available on their official website.
- Heber Light & Power: Offers net metering. Compensation rates for excess energy are available on their official website.
As you can see, some utilities compensate for excess solar energy at full retail rate while others at a lower wholesale or avoided-cost rate. And that difference has everything to do with how much you’ll actually save.
But either way, these programs all help you recoup your solar investment and eventually shorten your solar payback period.
Your solar installer will handle the interconnection paperwork and enroll you in your utility’s net metering program as part of the installation process.
Energy-Efficient Mortgages
Energy-Efficient Mortgages (EEMs) is a loan program that lets you roll solar costs into your mortgage, either when buying a new home or refinancing your existing one.
That means you can fund home energy upgrades without taking a separate loan, and spread the solar costs over 15 to 30 years, often at lower interest rates than personal loans or solar-specific financing.
Eligible upgrades typically include:
- Solar PV systems
- Battery storage
- ENERGY STAR® appliances
- Insulation
- Energy-efficient windows and HVAC systems
To apply, you’ll need to work with a participating mortgage lender. Let them know you’re interested in an EEM, and they’ll guide you through eligibility and documentation (usually including a home energy audit to verify savings):
- If you’re using an FHA or VA loan, you can ask the lender if they can add an EEM feature.
- For conventional loans, ask if they support Fannie Mae’s HomeStyle® Energy product.
Battery Storage Incentives in Utah
If you’re already thinking about investing in a solar battery (or looking for reasons to invest in one), know that – apart from the 30% federal solar tax credit – another way you can get “paid” for a home solar battery is through Rocky Mountain Power’s Wattsmart Battery Program.
The Wattsmart Battery Program rewards homeowners for letting the utility tap into their battery storage during periods of high grid demand, such as during hot summer afternoons or winter peaks. In return, you get paid for every kilowatt of storage capacity your battery provides.
Here’s how you can benefit from this program:
- Enrollment Incentive: Upfront cash payment of $400 per kilowatt (with a $2,000 cap per household)
- Annual Bill Credits: $15 per kilowatt (starting in the 2nd year of the program)
To qualify, you must be an RMP residential customer. Moreover, your battery must be from the utility’s approved equipment list.
Is the Renewable Energy Systems Tax Credit Still Available?
No, Utah’s former state-initiated solar tax credit is no longer available for homeowners. The program, officially known as the Renewable Energy Systems Tax Credit (RESTC), ended for residential systems installed after December 31, 2023.
That means if you installed your solar panels in 2024 or later, you won’t be able to claim any state tax credit from Utah.
Why Am I Not Getting My Full Solar Tax Credit?
If your federal solar tax credit isn’t as big as you expected, the most common reason is that you didn’t owe enough in taxes. If your tax liability is too low for the year, you won’t be able to claim the full amount in the first year. However, you can roll over the unused portion for future years.
Is Solar Worth It in Utah?
Yes, solar is absolutely worth it in Utah. If you pause for a second and look beyond just the price tag, you’ll see why going solar makes sense in Utah, not just on paper, but also in practice:
- Electricity prices aren’t staying put in Utah. In just one year alone from early 2024 to early 2025, average residential electricity prices in Utah rose from around 10 cents to nearly 12 cents per kilowatt-hour – a 20% jump. Going solar lets you lock in a steady cost for years to come, softening the blow of such price hikes.
- Homes with solar sell for more. That means if you ever decide to move, you’re more likely to sell your home quicker and for a better price.
- Utah gets about 5.5 peak sun hours per day. That’s more than New York, Massachusetts, and even parts of California. More sunlight means more energy from your system, faster payback, and better long-term savings.
Final Thoughts on Utah Solar Incentives
If you’ve done some prior research, you might have noticed that Utah doesn’t exactly roll out the flashiest rebates like states such as California, New Jersey, or New York.
But here’s the thing: Incentives are just one part of the equation. What really makes or breaks your solar savings is how well your system is designed – from panel placement to inverter choice to matching your usage patterns. And that’s something a reputable solar installer can help you get right.
If you want to know what a well-designed solar system tailored to your home’s energy needs could actually cost you in Utah, request a quote today. We at Avail Solar have installed hundreds of systems across the state, and we’re confident we can give you a price that fits both your goals and your budget.