Cost of Solar Panels in Utah: Best Solar Companies, Cost and Installation

Solar is a complicated decision and OhmHome has compiled this guide to Utah solar with the cost of solar panels in Utah and advice on how to estimate cost and savings, navigate state and federal incentives, and find the best solar companies in Utah.

Solar Trends in Utah

Utah solar permits declined 23% to 50 in June from 65 in June 2016 and increased 14% from May 2017 (YTD increase of 43%)

Cost of Solar Panels in Utah

The cost of solar has dropped significantly in recent years due to the increase in module supplies and other supply chain efficiency improvements. According to the U.S. Department of Energy’s Q4-16 Sunshot report, the median price of residential solar in major markets was $4.20 per watt with the lowest 20% at approximately $3.50 per watt.

Solar Incentives in Utah

Utah’s Renewable Energy Systems Tax credit offers an investment tax credit for residential solar systems equal to 25% of the eligible system cost or $2,000, whichever is less. The tax credit can also be applied to solar thermal, wind, geothermal, hydro and biomass technologies. Applications can be submitted through the Governor’s Office of Energy Development.

Federal Solar Tax Incentives

The IRS offers a 30% tax credit for solar systems based on the cost after state rebates and credits (discussed above). It is important to note that that federal tax credit only applies to purchased systems and you need sufficient tax liability to claim the credit. The federal solar tax credit was set to expire in 2016, but was recently extended through 2019, at which point it will start to decrease to 10% by 2022. The IRS form 5695, Residential Energy Credits can be found here.

Solar Financing in Utah

The number of solar financing options has expanded significantly in recent years to includes a number of low-interest rate loans, as well as power purchase agreements or solar leases. To learn more, refer to our lease or buy solar guide.