Are Solar Panels Worth It in Utah?
Last updated July 1, 2026 · based on Utah energy prices
In Utah, where residential electricity averages about 11¢/kWh and rooftop solar yields roughly 1,600 kWh per kW per year, solar has a longer payback here (about 18.8 years) because electricity is relatively cheap — it makes the most sense if your rate is rising or you value energy independence.
Utah solar cost & savings (typical 7 kW system)
| Metric | Estimate |
|---|---|
| Annual production | 11,200 kWh |
| Installed cost (before incentives) | $21,000 |
| Estimated annual savings | $1,120 |
| Payback period | 18.8 years |
| 25-year net savings | +$5,383 |
Figures use Utah average prices, a 7 kW system at $3.00/watt, 50% self-consumption at retail plus a conservative 9¢/kWh net-metering credit, and ~0.5%/yr panel degradation. Sources: EIA electricity prices and NREL PVWatts production modeling.
What this means for Utah homeowners in 2026
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025, so a 2026 installation in Utah carries the full upfront cost unless a state or utility incentive applies. Because Utah electricity costs relatively little, the payback case is more marginal — strongest for high electricity users, south-facing roofs, and homeowners who plan to stay long term.
Frequently asked questions
Are solar panels worth it in Utah in 2026?
At Utah's electricity price of 11¢/kWh, a typical 7 kW system saves about $1,120 per year and pays for itself in roughly 18.8 years. There is no federal solar tax credit in 2026 (Section 25D expired December 31, 2025), so these figures reflect bill savings and net metering only.
How much do solar panels cost in Utah?
A 7 kW system costs roughly $21,000 installed at about $3.00/watt before any state or utility incentive. Costs vary by installer, equipment, and roof complexity.
How much electricity will solar produce in Utah?
About 1,600 kWh per year per kW installed in Utah, so a 7 kW system produces roughly 11,200 kWh/year. Your exact output depends on roof orientation, tilt, and shading.
Estimates based on Utah average energy prices and a simplified model; your results will vary. Energy prices and incentives change frequently. Not financial advice.