Utah's solar story in 2026 leads with one fact most coverage hasn't caught up to: full-retail net metering is CLOSED to new customers. If you're reading a quote dated 2026 that still describes Utah as "1:1 net metering" — that's OUTDATED. It applies only to systems grandfathered before November 2017 (Schedule 135, through 2035) and a narrow Transition Program window (Nov 2017 - Oct 2020, at about 90-92.5% of retail through 2032). A new 2026 buyer is on Schedule 137 net billing, NOT 1:1.
The headline:
- Net metering closed to new customers since November 15, 2017. New 2026 installs are on Rocky Mountain Power SCHEDULE 137 ('Net Billing Service') — INSTANTANEOUS NETTING with exports credited at the Export Credit Rate (ECR), NOT retail.
- Self-consumed at retail (~$0.11/kWh). Instantaneous EXCESS exported earns ECR.
- ECR is SEASONAL: about 5.7¢/kWh summer, about 4.2¢/kWh winter — roughly half retail.
- ECR is RECALCULATED ANNUALLY by the Utah PSC each March 1 — can fall further.
- System cap: 25 kW residential.
- Coverage: Rocky Mountain Power (PacifiCorp — dominant IOU, ~80%+ of Utah) modeled as default. A few municipals (e.g. St. George Energy Services, Murray City Power) still offer full retail net metering — coverage caveat, not modeled here.
- Federal §25D = $0 for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025).
- NO state income tax credit for residential solar PV. The Utah RESTC residential PV credit ENDED for systems installed in 2024 and later.
- MYTH: a live "25% / $1,600 Utah credit" for residential solar PV does NOT exist in 2026.
- Property tax NOT EXEMPT at statewide level — verify with county assessor; don't bake in.
- Sales tax EXEMPT under Utah Code §59-12-104 for alternative-energy equipment — REAL statutory exemption through June 30, 2027 (2026 purchase qualifies). Combined sales tax ~7.2%; about $1,400 saved on a $20,000 system.
- NO SREC, no RPS (RPS voluntary, no residential market).
- Rocky Mountain Power WATTSMART BATTERY PROGRAM: about $400/kW battery power upfront (capped about $2,000), PLUS about $15/kW/year performance payment for 3 years. APPLIES ONLY WHEN BATTERY IS ADDED.
- About $2.55 per watt install pricing (modeled default).
- Typical solar-only payback 15-20 years with federal $0 and ECR export at about half retail.
Sources citing about 9-12 year payback assume BOTH the dead 30% federal credit AND the old Schedule 135 retail net metering — neither applies to a 2026 cash buyer. Self-consumption and batteries are now critical to the math.
The case for Utah solar in 2026: retail offset on self-consumed power + real sales-tax exemption (through June 30, 2027) + Wattsmart battery rebate (when battery added) + excellent sun resource. The drags: federal $0, no state income credit, property NOT exempt, exports only about half retail, retail net metering ended, ECR resets annually.
What changed federally — and what's still on Utah quotes that shouldn't be
The federal Residential Clean Energy Credit (§25D) — the 30% homeowner credit — was repealed for systems installed after December 31, 2025. For 2026 Utah buyers, the federal credit on a purchased system is $0. The same applies to home batteries purchased outright. The §48E commercial credit (30%) still exists, but only for leased or third-party-owned systems where construction begins before July 4, 2026 — and the lessor claims it, not you. Full federal context here.
The repeal came through the One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025. Utah-focused solar sites are slow on this — any 2026 quote still showing "30% federal through 2032" is using the dead pre-OBBBA schedule. If a 2026 UT quote includes "30% federal solar tax credit" on a cash purchase, ask the contractor to redo the math with $0 federal and verify with IRS.
VERIFIED 2026-06 · IRS §25D repeal under OBBBA P.L. 119-21The retail net metering era ended November 15, 2017
This is the single most important Utah solar fact in 2026, and the part most coverage still gets wrong.
Utah's traditional 1:1 retail net metering closed to new customers on November 15, 2017. Utah PSC Docket 14-035-114 (the Rocky Mountain Power solar interconnection case) split the universe into three categories:
- Schedule 135 (pre-Nov 15, 2017 customers): grandfathered to 1:1 retail net metering through 2035.
- Schedule 136 'Transition Program' (Nov 15, 2017 - Oct 31, 2020 customers): exports at about 90-92.5% of retail through 2032.
- Schedule 137 'Net Billing Service' (Nov 1, 2020 onward — including all new 2026 buyers): NET BILLING with exports at the Export Credit Rate (ECR), NOT retail.
The new (Schedule 137) mechanism for 2026 buyers:
- INSTANTANEOUS NETTING: self-consume in real time at retail (~$0.11/kWh).
- Instantaneous EXCESS exported earns the ECR — currently about 5.7¢/kWh summer, 4.2¢/kWh winter (modeled here at about $0.05/kWh seasonal-average).
- ECR is RECALCULATED ANNUALLY by the Utah PSC each March 1 — it can fall further in subsequent filings.
MYTH ALERT: many Utah solar marketing sites and installer quotes still describe UT as "1:1 net metering." That description is OUTDATED for 2026 buyers. It applies only to grandfathered Schedule 135 systems. A new 2026 buyer does NOT get 1:1. If a contractor's payback math assumes full retail export on a 2026 install, the numbers are wrong.
This calculator models the new 2026 Schedule 137 case correctly.
VERIFIED 2026-06 · RMP Schedule 137 / Utah Code §59-12-104 / Utah OEDUtility coverage — Rocky Mountain Power, plus the municipal caveat
The Schedule 137 ECR framework applies to Rocky Mountain Power (PacifiCorp), which serves about 80%+ of Utah residential customers — including Salt Lake City, Provo, Ogden, and most of the Wasatch Front. Retail about $0.11/kWh; ECR about $0.05/kWh seasonal-average.
A handful of MUNICIPAL UTILITIES still offer full retail net metering, including (verify each before signing):
- St. George Energy Services (Washington County / southern UT)
- Murray City Power (Murray, Salt Lake County)
- A few other small municipal providers
If you're in a municipal territory, your terms may be materially better than Schedule 137 — but you must verify directly with the municipal utility. The calculator routes all Utah ZIPs to Rocky Mountain Power math by default; if you're on a municipal utility with full retail NM, your payback will be better than what's modeled here. This is a coverage caveat, not a calculator selector.
Rural co-ops (Garkane Energy, Dixie Power, others) vary — terms are NOT bound by the PSC Schedule 137 framework. Verify your specific co-op's tariff in writing before signing.
State income tax credit — DEAD for residential solar PV since 2024
Utah has NO live state solar income tax credit for residential PV in 2026. The Utah Renewable Energy Systems Tax Credit (RESTC) — historically cited as the "25% / $1,600 Utah credit" — ENDED for residential solar PV systems installed in 2024 and later (per Utah Office of Energy Development).
MYTH ALERT: many Utah solar marketing pages, contractor quotes, and aggregator sites still cite a live "25% / $1,600 Utah credit." That residential PV credit IS DEAD for 2024 and later installs. A 2026 install does NOT qualify.
Reject any 2026 quote that includes a Utah RESTC line item for residential solar. If your installer's payback math assumes a Utah state credit, the numbers are wrong. (Non-PV renewable technologies and commercial-side incentives are different programs and out of scope here.)
Property tax — NOT exempt at the statewide level
Utah does NOT have a clear statewide residential property tax exemption for rooftop solar. Some sources reference local-option or partial-assessment treatments at the county level — these are NOT statewide and NOT confirmed for residential rooftop.
Conservative treatment: assume solar may raise assessed value. Verify with your county tax assessor before assuming any property tax benefit. Don't bake an exemption into your payback math; treat any local-option benefit as upside if it materializes.
Sales tax — EXEMPT through June 30, 2027 (real, statutory)
Utah Code §59-12-104 EXEMPTS alternative-energy generation equipment (including residential solar PV) from state and local sales tax. A 2026 purchase QUALIFIES.
IMPORTANT: this exemption SUNSETS on JUNE 30, 2027 — purchases on or after July 1, 2027 do NOT qualify under current law (subject to legislative extension). If you're considering a 2027 install, the timing matters.
- Applies to: panels, inverters, and related equipment for the residential system.
- Combined Utah state + local sales tax averages about 7.2%.
- On a $20,000 system, that's roughly $1,400 in sales tax savings.
Make your installer apply it. Your quote should NOT include Utah state sales tax on solar equipment. If it does, ask the installer to remove it and cite Utah Code §59-12-104. This is one of the few unambiguously positive line items on the Utah residential solar ledger in 2026 — don't leave it on the table.
SREC / RPS — does NOT exist
Utah's Renewable Portfolio Standard is VOLUNTARY and there is NO SREC market for residential rooftop. Any quote citing "SREC revenue" for a Utah residential system is fictional.
Battery — Rocky Mountain Power Wattsmart Battery Program (real, live, but battery-only)
Utah has one of the better residential battery incentive structures in the West: the Rocky Mountain Power WATTSMART BATTERY PROGRAM.
- Upfront rebate: about $400 per kW of battery power capacity, capped at about $2,000 per customer. On a typical 5 kW battery, that's the full $2,000.
- Performance payment: about $15/kW/year for 3 years (dispatch allowance). On a 5 kW battery, that's roughly $225 over 3 years as a performance credit (not upfront).
- Total program value: about $2,225 over 3 years on a 5 kW / 10 kWh battery.
APPLIES ONLY WHEN A QUALIFYING BATTERY IS ADDED. Panels-only systems do NOT qualify for this rebate. To enroll, your battery must be Wattsmart-certified and you must opt in to Rocky Mountain Power dispatch events (the utility can pull power from your battery during grid stress events — that's the trade for the incentive).
Federal storage credit $0 (§25D repealed for storage purchase) — so the Wattsmart rebate is the ONLY direct battery incentive available to a 2026 Utah buyer.
Arbitrage gap is meaningful under Schedule 137: retail $0.11 vs ECR $0.05 = gap about $0.06/kWh. Battery captures retail value on stored solar that would otherwise export at the reduced ECR. With the $2,000 upfront rebate plus the export-arbitrage value, the Utah battery case is materially stronger than in most states without a battery rebate.
Resilience case is real too (winter storms, summer heat events, occasional grid stress).
The honest payback — 15-20 years post-net-metering-closure
At default install pricing of about $2.55/W, typical solar-only payback runs in the 15-20 year range with the federal credit at $0 and Schedule 137 ECR export at about half retail.
- Sources citing about 9-12 year payback for Utah assume BOTH the now-dead 30% federal credit AND the old Schedule 135 retail net metering (pre-2017). NEITHER applies to a 2026 cash buyer. Don't use those figures.
- Self-consumption and batteries are now critical to the math because exports earn only about half retail. Right-size tightly to your load; load-shift toward daylight; consider a battery to capture more retail value.
- Adding a Wattsmart-eligible battery (with the $2,000 upfront rebate plus the export-arbitrage value at ~$0.06/kWh gap) can shorten payback meaningfully vs panels-only.
- Cheap install pricing helps (
$2.55/W is on the lower-mid end of US install costs), as does the real sales tax exemption ($1,400 on a typical $20,000 system).
Utah solar in 2026 is still viable — but it's a more careful purchase than in the pre-2017 retail-NM era or the pre-2026 federal-credit era. Get your quote in writing, verify ECR seasonal rates, and confirm the Wattsmart enrollment terms if you're adding a battery.
VERIFIED 2026-06 · eia.gov; Utah Office of Energy DevelopmentHow to read this — Utah's case for solar
UT solar in 2026 is self-consumption-driven and battery-friendly (when the Wattsmart rebate is on the table), with forward export uncertainty from annual ECR resets.
- Reject any quote that describes Utah as "1:1 net metering" for a new 2026 install. Full retail NM ended November 15, 2017. New 2026 buyers are on Schedule 137 ECR net billing — exports at about half retail.
- Reject any 30% federal credit on a 2026 cash purchase. §25D was repealed effective for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025) — sites still citing "30% through 2032" are using the dead pre-OBBBA schedule.
- Reject any payback figure under about 12 years. Those numbers assume BOTH the dead 30% federal credit AND the old Schedule 135 retail net metering. Neither applies to a 2026 cash buyer.
- Reject any quote citing a live Utah RESTC "25% / $1,600 credit" for residential solar PV. That credit DIED for systems installed in 2024 and later.
- Reject any quote citing a Utah property tax exemption for residential solar. Not statewide. Verify with county assessor; don't bake in.
- Insist the sales tax exemption under Utah Code §59-12-104 is applied to your panels, inverters, and equipment. Combined sales tax about 7.2%; about $1,400 saved on a typical $20,000 system. The exemption SUNSETS June 30, 2027 — a 2026 purchase qualifies. Don't leave it on the table.
- Right-size tightly to your load. Schedule 137 instantaneous netting + ECR export at about half retail punishes oversizing. Match production to consumption; load-shift toward daylight (dishwasher, laundry, EV charging during solar hours).
- Run the math both ways: panels-only AND panels + Wattsmart battery. The Wattsmart $2,000 upfront + export-arbitrage value can shorten payback meaningfully. The battery case in Utah is materially stronger than in most states.
- Verify your specific ECR rates for the current year. ECR resets each March 1; ask the installer to show you the current PSC-approved seasonal ECR values, not a pre-2026 reference.
- Verify if you're on a municipal utility (St. George, Murray City, etc.). Some municipals still offer full retail NM — your payback may be better than modeled here.
- Don't budget for SREC revenue. Utah's RPS is voluntary; no residential market.
- Watch PSC dockets for further ECR erosion. Annual reset means the export rate can fall further; a 2026 buyer cannot lock a long-term export value.
If you can right-size tightly to your load, insist your installer applies the sales tax exemption, add a Wattsmart-eligible battery (if the resilience case and arbitrage math work for you), and you're comfortable with the annual ECR reset uncertainty, Utah solar is a respectable case for 2026 — just expect 15-20 year payback rather than the under-12 figures from the pre-net-metering-closure or pre-federal-repeal era. If you were counting on the federal credit, on the old Schedule 135 retail net metering, on a live RESTC state credit, or on a guaranteed property tax exemption — none of those apply to a 2026 cash buyer.
Run your real Utah payback →The honest picture
| Fact | Utah | Source |
|---|---|---|
| Mechanism | NET BILLING with INSTANTANEOUS NETTING under Rocky Mountain Power Schedule 137 (full retail NM CLOSED to new customers since Nov 15, 2017) | Utah PSC Docket 14-035-114; RMP Schedule 137 |
| Federal credit | $0 (cash purchase) | IRS — §25D repealed under OBBBA P.L. 119-21 |
| State credit | NONE for residential solar PV — the Utah RESTC residential PV credit (sometimes cited as "25% / $1,600") ENDED for systems installed in 2024 and later; reject any 2026 quote citing this | Utah Office of Energy Development |
| SREC | NONE — RPS voluntary, no residential market | (no market) |
| Property tax | NOT EXEMPT at the statewide level (some local-option claims; verify with county assessor) | (no clear state statute for residential) |
| Sales tax | EXEMPT for alternative-energy generation equipment (including residential solar PV) under Utah Code §59-12-104 — REAL statutory exemption; SUNSETS June 30, 2027; combined sales tax averages about 7.2%, about $1,400 saved on typical $20,000 system | Utah Code §59-12-104 |
| Net metering / export | INSTANTANEOUS netting under Schedule 137 — self-consumed at retail, instantaneous excess exported at REDUCED Export Credit Rate (ECR), NOT 1:1 for new 2026 installs | RMP Schedule 137 |
| Excess credit rate | ECR seasonal: about 5.7¢/kWh summer, about 4.2¢/kWh winter — modeled about $0.05/kWh seasonal-average; RECALCULATED ANNUALLY by Utah PSC each March 1 | RMP Schedule 137 |
| Retail rate | About $0.11/kWh | EIA; Rocky Mountain Power tariff |
| Install $/W | About $2.55 per watt before incentives (modeled default) | NREL; EnergySage |
| System cap | 25 kW residential | RMP Schedule 137 |
| Battery treatment | Rocky Mountain Power WATTSMART BATTERY PROGRAM: about $400/kW battery power upfront (capped about $2,000) PLUS about $15/kW/year performance payment for 3 years; APPLIES ONLY WHEN BATTERY IS ADDED; federal storage $0; arbitrage gap meaningful (retail $0.11 vs ECR $0.05 = about $0.06/kWh) | RMP Wattsmart Battery Program tariff; IRS |
| Payback range | About 15-20 years with federal $0 and ECR export at about half retail (sources citing 9-12 years assume BOTH the dead 30% federal credit AND the old Schedule 135 retail net metering — neither applies to a 2026 buyer) | this calculator |
| Main risk | ECR is recalculated annually by the Utah PSC each March 1 — a 2026 buyer cannot lock a long-term export value, so ROI is uncertain. Utah has also been cutting renewable incentives over time (HB 264 phase-outs, new generation taxes). Sales tax exemption sunsets June 30, 2027. Forward trajectory is more erosion | Utah PSC; HB 264 |
| Utility coverage | Schedule 137 applies to Rocky Mountain Power (PacifiCorp, dominant IOU serving about 80%+ of Utah) modeled as default; a handful of municipal utilities (St. George Energy Services, Murray City Power, others) still offer full retail net metering — coverage caveat, not modeled here; rural co-ops vary | RMP Schedule 137; municipal tariffs |
| Right-sizing | Critical — instantaneous netting + ECR export at about half retail punishes oversizing; size to on-site use, load-shift toward daylight, batteries add the most value | RMP Schedule 137; Utah OED |
Before you commit:
- Reject any quote that describes Utah as "1:1 net metering" for a new 2026 install. Full retail NM closed November 15, 2017 under Utah PSC Docket 14-035-114. Only systems grandfathered before that date keep 1:1 retail terms (through 2035). New 2026 buyers are on Schedule 137 ECR net billing — exports at about half retail.
- Reject any 30% federal credit on a 2026 cash purchase. §25D was repealed effective for systems installed after December 31, 2025 (OBBBA P.L. 119-21, signed July 4, 2025) — sites still citing "30% through 2032" are using the dead pre-OBBBA schedule.
- Reject any payback figure under about 12 years. Those numbers assume BOTH the dead 30% federal credit AND the old Schedule 135 retail net metering. Neither applies to a 2026 cash buyer.
- Reject any quote citing a live Utah RESTC "25% / $1,600 credit" for residential solar PV. That credit DIED for systems installed in 2024 and later.
- Reject any quote citing a Utah property tax exemption. Not statewide. Verify with your county tax assessor.
- Insist the sales tax exemption under Utah Code §59-12-104 is applied to your panels, inverters, and equipment. Combined sales tax about 7.2%; about $1,400 saved on a typical $20,000 system. The exemption SUNSETS June 30, 2027 — a 2026 purchase qualifies.
- Right-size tightly to your load. Schedule 137 instantaneous netting + ECR export at about half retail punishes oversizing. Match production to consumption; load-shift toward daylight.
- Run the math both ways: panels-only AND panels + Wattsmart battery. The Wattsmart rebate (about $400/kW upfront, capped about $2,000, plus about $15/kW/year for 3 years) plus the $0.06/kWh export-arbitrage value can shorten payback meaningfully. APPLIES ONLY WHEN BATTERY IS ADDED.
- Verify your specific ECR rates for the current year. ECR resets each March 1; ask the installer to show you the current PSC-approved seasonal ECR values.
- Verify if you're on a municipal utility (St. George Energy Services, Murray City Power, others) — some still offer full retail NM and your terms may be materially better than Schedule 137. If on a rural co-op, verify the tariff in writing.
- Watch PSC dockets and OED announcements for further erosion. Annual ECR reset means the export rate can fall further; Utah has been cutting renewable incentives over time (HB 264 phase-outs, new generation taxes).
Estimates only — Rocky Mountain Power Schedule 137 Export Credit Rate is recalculated annually by the Utah Public Service Commission each March 1 and may change; municipal utility net metering terms vary and are not bound by the IOU Schedule 137 framework; rural co-op terms vary widely; the Utah Code §59-12-104 sales tax exemption sunsets June 30, 2027 and may or may not be extended by legislative action. Verify with the Utah Public Service Commission, Rocky Mountain Power (or your specific municipal / co-op utility), the Utah State Tax Commission for sales tax exemption application details, the Utah Office of Energy Development for any program updates, and your county tax assessor. This is not financial advice.