Solar Panels in Utah | 2022 Cost and Incentives | SaveOnEnergy®

Utah Solar Panels: Pricing and Incentives

How much do solar panels cost in Utah?

home with solar panels on the roof

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Solar power in Utah

As with much of the country, residential solar panels are becoming increasingly popular in Utah. The state is among the largest producers of solar energy in the United States, and its growth is only expected to grow in the coming years. As a result, it’s easy for Utah residents to find accessible and affordable solar panels for their homes.

Are you considering installing solar panels on your home? Keep reading to learn more about the costs and benefits of solar panels in Utah and how to decide if they’re right for your home.

Utah solar panel cost

The cost of solar panels depends on a variety of factors, including the size of your system, the type and brand of your solar panels, the cost of solar panel installation, tax credits, and more. Generally, the price of a solar system is based on how much energy the system will generate. 

Solar panels cost between $3 and $5 per watt, so a 5 kWh system would cost between $15,000 and $25,000. The good news is that between state and federal financial incentives and potential energy savings, you could make back your money in just six to nine years.

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Utah solar panel incentives or rebates

While the upfront costs of solar panels in Utah are high, there are several federal and state incentives and rebates to offset those costs.

The most significant incentive currently available is the federal Solar Tax Credit (ITC). The solar tax credit is 26% in 2022 and will drop to 22% in 2023. The credit is set to expire in 2024, so it might be smart to invest in solar panels soon to guarantee you receive the credit. 

The state of Utah also offers potential ways for homeowners to save. The state’s renewable energy systems tax credit allows you to claim 25% of your solar panel purchase on your taxes, for up to $1,600 back on your taxes. Other initiatives in the state include Utah’s renewable energy credits program and its solar easements and rights laws.

Why choose Utah solar power?

There are some key benefits to choosing solar power in Utah, including reducing your energy costs, establishing energy independence, and reducing your environmental footprint.

Lower energy costs 

While the upfront cost of solar panels is a major investment, your panels can drastically reduce your energy costs. Anytime your home is being powered by solar energy, you aren’t paying for energy from the traditional electricity grid. You can save even more by selling your excess energy back to the energy grid through Utah’s net metering program.

Establish energy independence 

Another perk of installing solar panels is the ability to establish energy independence, meaning you aren’t reliant on the traditional energy grid to power your home. You can store any power your solar panels generate that your home doesn’t use immediately with solar batteries that are connected to your system. 

Go green

Solar power is a form of renewable energy, meaning it won’t run out. It’s also a form of green energy, meaning its generation doesn’t have the same harmful environmental impacts as traditional electricity generation.

Should I buy or lease my solar panels?

When you decide to install solar panels on your home, you can choose to either buy or lease them. If you can manage the upfront fees, you’ll end up saving more money in the long run by purchasing your solar panels. Solar panels pay for themselves in 6 to 9 years on average. After that, you’re saving money for every watt of electricity your panels produce. Buying your own solar panels also allows you to take advantage of the federal and state tax credits, and it can increase your home’s resale value by an average of $15,000.

While leasing solar panels isn’t as cost-effective as buying your own solar panels, this option has certainly helped to make solar power more accessible. If you don’t want to pay the large upfront costs of buying solar panels, leasing is a great option. It’s also a good option for people who rent their homes, since buying panels may not make sense.

Another way to benefit from solar energy without the upfront costs is a community solar program. With a shared or community solar project, many homes share the power generated by an offsite plant. This option is great if you can’t afford solar panels, live in an apartment, and in other situations.

Utah solar panel companies

In Utah, you have several solar panel companies to choose from. Because it’s a major investment, it’s important that you do your research ahead of time. You can use the resources from SaveOnEnergy to get familiar with the solar industry before choosing an installer.

The history of solar power in Utah

Utah began passing solar policies in the late 1970s when it passed its solar easements regulations. While the state didn’t pass many policies in the following years, it picked up steam again in the early 2000s. The state went on to pass its solar tax credit, its net metering program, Renewable Portfolio Goal, and more.

Today, Utah ranks 12th in the nation for solar energy generation. More than 9% of the state’s electricity comes from solar power, which is enough to power nearly half a million homes. Most of the solar installations in the past decade have been utility investments, but there has been an increase in residential installations as well.

Important solar installation factors to consider

Solar power can be an excellent investment, especially when you combine the potential energy savings with both the federal and state tax credits. However, there are a few things to consider before installing solar panels on your home:

  1. According to the Department of Energy, solar panels are most effective on roofs in good condition, those that are south-facing, and those with slopes from 15 to 40 degrees.
  2. Solar panels save you the most money if your home gets a lot of sunlight, so many sure weather patterns or shade don’t prevent the sun from hitting your solar panels.
  3. If you have a homeowners association, there may be some restrictions around solar panels, including requiring approval before you install them.

Solar power FAQs

How much would solar cost in Utah? Expand / Collapse Toggle

The cost of a solar panel system varies based on factors, including the size of the system. On average, a 5kWh home solar system costs between $15,000 and $25,000 before tax credits.

Is solar power a good investment in Utah? Expand / Collapse Toggle

Solar panels can be an excellent investment, but they aren’t right for everyone. To determine if solar panels are right for you, consider the weather patterns in your area and your energy usage habits.

How much could I save by investing in solar? Expand / Collapse Toggle

Utah residents pay some of the lowest energy bills in the nation, with an average monthly bill of just $81. However, there’s still plenty of potential savings. Even the average resident could save nearly $880 per year.

Where can I find a good solar panel installer in Utah? Expand / Collapse Toggle

Because Utah is a top state for solar installation, there are many experienced solar panel installers available throughout the state. Go about finding an installer the same way you would find any home improvement contractor – research your options and read all contracts before signing.

How does solar power help the environment? Expand / Collapse Toggle

Unlike traditional electricity generation, solar power doesn’t emit carbon dioxide or other pollutants into the atmosphere. Solar is also a form of renewable energy.