Utah · Tax exemption · Deep-stack program

UT Solar Property Tax Exemption

Removes a tax burden residential solar owners in Utah would otherwise carry -- see what it covers, eligibility, and payback impact below.

Property tax exemption
stated benefit
Residential
eligible customers
14.5 yr
Utah baseline payback
3
other Utah programs
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Deep-stack program · late directory

Utah runs a 4-program DSIRE stack; this tax exemption is one layer on a 14.5-year modeled baseline, not the whole story.

  • Stack4 programs
  • In-state #3/3
  • Type #39/45
  • Baseline14.5 yr

In-state directory place #3 of 3 (late alphabet). National tax exemption directory #39 of 45. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.

Program description

Utah exempts solar energy systems from local property tax assessment.

Program at a glance

Program type
Tax exemption
Eligible customers
Residential
Stated benefit
Property tax exemption
State electricity rate
10.8¢/kWh
Utah solar score
40/100

Solar's trajectory in Utah

The market this incentive operates in: total installed solar capacity in Utah reported to the EIA.

0 MW500 MW1.0 GW1.5 GW2.0 GW2.5 GW 2012201420162018202020222024 2.2 GW
Utah now has about 2.2 GW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Utah's solar incentive stack

How this tax exemption sits among Utah's 3 tracked programs, by type

programs

What this shows Utah tracks 3 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.

Source DSIRE incentives registry As of 2024

How this tax exemption layers inside Utah's deep stack

The UT Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Utah's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Property tax exemption. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.

That baseline is slower than most states, which raises the stakes for every incentive on the table. Utah averages 5.9 kWh/m²/day of usable sunlight and residential rates of 10.8¢/kWh, producing an estimated 10,337 kWh/year and $1,116 of annual utility offset on a typical 6 kW system costing $16,200. That baseline already implies a 14.5-year simple payback and a 25-year modeled net of roughly $11,700 before this incentive - every dollar this tax exemption delivers compresses that payback further.

Utah bundles a deep incentive stack, so this program rarely stands alone. Utah has 4 solar incentive programs indexed in DSIRE, including adjacent options like UT Net Metering, UT Residential Clean Energy Tax Credit. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.

Frequently asked questions

Where does the UT Solar Property Tax Exemption sit in Utah's deep program stack?
The UT Solar Property Tax Exemption is a tax exemption available to residential solar customers in Utah. The stated benefit is Property tax exemption.
How does this tax exemption work beside Utah's other programs?
Utah exempts solar energy systems from local property tax assessment.
Who qualifies, and what does a late in-state directory place mean?
The program is available to residential customers in Utah. Check the official program page for current eligibility requirements and deadlines. In-state directory place #3 of 3 (late alphabet).
How does this incentive affect solar ROI in Utah?
Utah has an estimated 14.5-year payback for a 6 kW system before incentives, with about $1,116/year in modeled savings. A tax exemption like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Which other Utah programs stack with this one?
Utah has 4 solar incentive programs tracked in DSIRE, including UT Net Metering, UT Residential Clean Energy Tax Credit. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology · Utah solar data · ROI calculator · All incentives.