UtahSolar Incentives 2026: Tax Credits, Rebates & Net Metering

Utah offers a 25% state income tax credit on residential solar installations, capped at $400. The credit applies to panels, inverters, mounting hardware, and labor. It is non-refundable but can typically be carried forward to subsequent tax years if your liability in the install year is too low to absorb the full credit.

The Utah state credit stacks with the federal 30% Residential Clean Energy Credit. On a typical $24,000 installation, that combination returns roughly $7,600 in combined credits.

Utah requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is a modified rate (typically retail rate minus a small grid utilization fee).

In practice, this means a properly sized Utah system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under UT net metering rules include Rocky Mountain Power, Utah Municipal Power.

2 major utilities operate in Utah: Rocky Mountain Power, Utah Municipal Power. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.

Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Utah installers will pull up-to-date rebate data during a site assessment.

Utah does not currently offer a property tax exemption for solar. The added home value from a solar installation is generally included in the next assessment cycle.

Utah does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.

Compare Utah's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.