Solar power in Utah

As in many areas of the country, residential solar panels are becoming increasingly popular in Utah. The Beehive State is among the largest producers of solar energy in the United States, and it already has installed enough solar to power more than 520,000 homes. According to the Solar Energy Industries Association (SEIA), Utah has invested $4.4 billion and counting in solar energy. 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? Even though you’ll need to spend a lot upfront, you can save significantly in the long run. Keep reading to learn more about the costs and benefits of solar panels in Utah and decide if they’re right for your home.

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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, installation fees, tax credits, and more. Generally, the price of a solar system is based on how much electricity the system will generate.

According to data from Find Energy, a typical set of Utah solar panels costs around $3.29 per watt, with an average system size of 7 kilowatts (kW). The state’s typical total system cost is$23,034 before applying any Utah solar incentives or federal tax credits.

Here’s how that compares to the national average:

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does Utah solar save you money?

With state and federal solar incentives, you can significantly reduce your upfront costs when you purchase your solar panels. The federal solar tax credit can knock off 30% of the cost of solar panels in Utah, saving you about $6,900 off an average Utah solar installation.

You also have to consider your long-term savings and return on investment. If you’re like the typical Utah homeowner, you spend around $88.74 per month on electricity. Solar panels could reduce or eliminate that cost, saving you around $1,060 per year. With that savings, you’d pay back the cost of your Utah solar panels in just under 15 years.

In the table below, you’ll find a range of prices for various system sizes in Utah. You can use this to estimate your costs before tax credits and calculate your potential return.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Utah solar panel incentives or rebates

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

The most significant incentive currently available is the federal Residential Clean Energy Credit. With this program, you’ll receive a portion of the cost of your Utah solar panels back when you file your tax return.  The solar tax credit will be 30% from 2022 to 2032 and will drop incrementally until it expires in 2035.

The state of Utah also offers potential ways for homeowners to save. Here are some of the Beehive State’s most popular solar incentives:

Solar incentives in Salt Lake City

Residents of Utah’s most populous city, along with surrounding towns like West Valley City, West Jordan, Orem, and Provo, can take advantage of statewide Utah solar incentives like the Renewable Energy Systems Tax Credit and net metering.

• Note that the tax credit is phasing out after 2023. Systems installed this year can receive a maximum $400 credit, while systems from 2022 can receive $800, systems from 2021 can receive $1,200, and systems from earlier years receive up to the full $1,600. Visit the state page to apply.
• To apply for net metering, reach out to your utility company.

Solar incentives in St. George

Along with the Renewable Energy Systems Tax Credit, residents of St. George are eligible for a city-specific net metering program. 

• Reference the City of St. George webpage for more information about its net metering program, including what to know before you start your installation and how to apply for the program. 

Why choose Utah solar power?

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

Lower your energy costs

While the upfront cost of solar panels in Utah 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 grid through Utah’s net metering program.

Increase energy independence

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

Go green

Solar power is a form of renewable energy, meaning it doesn’t diminish with use. It’s also a form of green energy, meaning its generation doesn’t have the same harmful environmental impacts as traditional electricity generation. Installing Utah solar panels is a great way to reduce your carbon footprint.

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. After you recoup the costs through energy savings, you’ll be earning money for every watt of electricity your panels produce. Buying your own solar panels also allows you to take advantage of 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 choice 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.

Utah solar panel companies

In Utah, you have severalsolar 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. We work with top-tier, trusted solar installers in Utah and across the country.

Solar installer	Year founded	Financing options	Warranty terms
	2011	Cash purchase or solar loan	25-year manufacturer warranty and production guarantee
	2018	Cash purchase or solar loan	30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
	1985	Cash purchase, solar loan, or lease	25-year full system warranty

What to look for in a solar contractor

As you explore your options for Utah solar companies, you may be overwhelmed trying to figure out where to start. The first and most important thing to look for is an industry certification — reputable installers will be certified by an organization like the North American Board of Certified Energy Practitioners (NABCEP). It’s also a good idea to read customer reviews and find out how other customers feel about their experiences with the company. Beyond these factors, take time to review their equipment options, financing, and warranty coverage to ensure they meet your expectations.

Beware of free solar panels in Utah scam

Although you can save big on the cost of solar panels in Utah, you’ll still need to be prepared to spend $15,000–$20,000 upfront. Many scammers post ads for “free solar panels in Utah,” but these offers aren’t legitimate. Their aim is to get your personal information, trap you in a disadvantageous contract to get money from you, or both. Protect yourself by turning to SaveOnEnergy; we work with quality installers and can help you find the best (legitimate) deals for solar energy in Utah.

Important solar installation factors to consider

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

• Your roof: According to the Department of Energy, solar panels are most effective on south-facing roofs in good condition with slopes from 15 to 40 degrees.
• Your access to sunlight: Solar panels save you the most money if your home gets a lot of sunlight. Make sure weather patterns or shade don’t prevent the sun from hitting your solar panels.
• Your neighborhood: If you have a homeowners association, there may be some restrictions around solar panels, including requiring approval before you install them. Utah law doesn’t allow HOAs to prevent you from installing panels, but you may still need to meet certain requirements.