Solar Incentives in Utah
In 2026, Utah homeowners installing rooftop solar have a more limited incentive landscape than in prior years. The state's sales and use tax exemption remains active, eliminating Utah sales and use tax on qualifying solar equipment purchases or leases of seven years or more through June 30, 2027. For grid-connected systems, Rocky Mountain Power customers — who represent the majority of Utah residential utility customers — can earn export credits under Schedule 137, though the rates vary by season and are set by tariff under Utah Public Service Commission authority, so homeowners should consult their specific utility and current tariff for applicable figures. Export rates and net billing terms vary by utility, and customers not served by Rocky Mountain Power should contact their provider directly.
The federal picture has changed significantly for 2026 installations. The residential Clean Energy Credit under Internal Revenue Code §25D — commonly called the 30% federal tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act (Pub. L. 119-21). Homeowners installing solar in 2026 cannot claim that credit on a new residential system, which meaningfully extends typical payback periods compared to installations completed in prior years.
One program homeowners may recall is now gone: Utah's residential Renewable Energy Systems Tax Credit (RESTC) for solar PV phased down and ended entirely for systems installed after December 31, 2023, providing no credit for new residential solar PV installs. With that credit eliminated and the federal credit expired, payback calculations now rest primarily on utility bill savings at Utah's current residential average of approximately 13.17 cents per kilowatt-hour (March 2026) and applicable export compensation.
These figures are verified as of June 2026 against official sources; programs and rates change with each legislative session and utility rate case, and the Utah Office of Energy Development and Utah Public Service Commission remain the authoritative sources for current program details.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Utah
Renewable Energy Systems Tax Credit (Commercial)
Utah offers a refundable tax credit for commercial renewable energy installations, including solar PV, wind, geothermal, hydro, biomass, and certain renewable thermal technologies. The credit is 10 percent of the eligible system cost or $50,000, whichever is less, calculated the same for all eligible technologies. Per HB 264 (2025), the credit expires for systems completed and placed in service after January 1, 2028. A $15 application fee applies under Utah Code 79-6-401.
| Amount | Refundable credit of 10% of eligible system cost, up to $50,000. |
|---|---|
| Who qualifies | Commercial renewable energy installations in Utah, including solar PV; systems must be placed in service by January 1, 2028. |
| Administered by | Utah Office of Energy Development / Utah State Tax Commission |
Source: Utah Code 59-7-614; HB 264 (2025); program page Official source →
Rocky Mountain Power Net Billing Service (Schedule 137)
Rocky Mountain Power, Utah's dominant electric utility, compensates rooftop solar exports under Electric Service Schedule No. 137 (Net Billing Service), approved by the Utah Public Service Commission. Customers are billed normally for consumption, and energy exported to the grid earns a bill credit at tariffed export rates that vary by season. Unused credits expire annually per the tariff. Facilities are limited to 25 kW for residential and 2 MW for non-residential customers.
| Amount | Export credit of 4.855 cents/kWh for billing months June-September and 4.033 cents/kWh for October-May (tariff effective April 25, 2025). Application fees apply (e.g., Level 2: $75 plus $1.50/kW). |
|---|---|
| Who qualifies | Rocky Mountain Power Utah customers with customer-operated renewable generating facilities up to 25 kW (residential) or 2 MW (non-residential). |
| Administered by | Rocky Mountain Power (PacifiCorp), under Utah Public Service Commission authority |
Source: Electric Service Schedule No. 137; Utah PSC Docket No. 24-035-04; Utah PSC Rule R746-312 Official source →
Sales and Use Tax Exemption for Alternative Energy Electricity Production Facilities
Utah exempts from sales and use tax purchases, or leases of seven or more years, of tangible personal property used to make an alternative energy electricity production facility operational up to the point of grid interconnection. Qualifying equipment includes generating equipment, control and monitoring systems, power lines, and substation equipment with an economic life of five or more years. The exemption applies to purchases made on or before June 30, 2027, and does not cover construction property or contracted services. This is a facility-scale exemption, not a residential rooftop exemption.
| Amount | Full exemption from Utah sales and use tax for qualifying purchases/leases made July 1, 2004 through June 30, 2027. |
|---|---|
| Who qualifies | Alternative energy electricity production facilities (including solar) located in Utah that become operational on or after July 1, 2004 or increase capacity by 1 MW or more; equipment with economic life of 5+ years. |
| Administered by | Utah State Tax Commission |
Source: Utah Code 59-12-104(55) Official source →
Utah C-PACE (Commercial Property Assessed Clean Energy)
Utah's C-PACE program provides long-term, non-recourse financing for energy efficiency, water efficiency, seismic resiliency, and renewable energy projects (including solar) on new and existing commercial buildings, repaid through a property assessment. Existing buildings are eligible for up to 100% cost recovery and new buildings up to 35%, with financing terms up to 30 years. The program is managed by the Utah Office of Energy Development and administered by Sustainable Real Estate Solutions (SRS).
| Amount | Financing (not a rebate): up to 100% of project cost for existing buildings, up to 35% for new buildings; terms up to 30 years at fixed rates. |
|---|---|
| Who qualifies | Commercial properties including agricultural, industrial, retail, multifamily residential, non-profit, and office buildings in participating Utah jurisdictions. |
| Administered by | Utah Office of Energy Development; administered by Sustainable Real Estate Solutions (SRS) |
Source: Utah Commercial Property Assessed Clean Energy Act, Utah Code Title 11, Chapter 42a; program page Official source →
No longer available in Utah
These programs have been repealed or closed and do not apply to new installations. They are listed for homeowners who still ask about them.
Renewable Energy Systems Tax Credit (Residential)
Utah's residential Renewable Energy Systems Tax Credit (RESTC) is no longer available for solar PV: residential solar PV systems installed in 2024 and beyond are not eligible, after a scheduled phase-down (25% of system cost capped at $400 for 2023 installs, $800 for 2022, $1,200 for 2021, $1,600 for 2018-2020). Home battery installations are also not eligible. The credit remains available for residential wind, geothermal, hydro, biomass, and certain renewable thermal systems at 25% of cost up to $2,000, but per HB 264 (2025) the remaining credit expires for systems placed in service after January 1, 2028.
Source: Utah Code 59-10-1014; HB 264 (2025); program page Official source →
Compare solar incentives across all states → · Check what applies to you →
Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.