Utah · Tax credit
UT Residential Clean Energy Tax Credit
Reduces residential solar owners' tax liability in Utah -- see the credit amount, who qualifies, and how it shortens payback below.
- 25% of cost, max $800
- stated benefit
- Residential
- eligible customers
- 14.5 yr
- Utah baseline payback
- 3
- other Utah programs
What it means
In Utah, a 6 kW system already pays back in about 14.5 years on ~$1,116/year of modeled savings, and the UT Residential Clean Energy Tax Credit stacks on top of that, on top of any federal credit.
- 25% of cost, m…
- stated benefit
- 14.5 yr
- baseline payback (pre-incentive)
- 4
- Utah programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Utah income tax credit for residential solar photovoltaic systems.
Program at a glance
- Program type
- Tax credit
- Eligible customers
- Residential
- Stated benefit
- 25% of cost, max $800
- State electricity rate
- 10.8¢/kWh
- Utah solar score
- 40/100
How Utah compares to the U.S. average
Why this incentive matters more (or less) here - Utah's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Utah
The market this incentive operates in: total installed solar capacity in Utah reported to the EIA.
Utah's solar incentive stack
How this tax credit sits among Utah's 3 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- Tax credit
Tax credit
1 programs
What this shows Utah tracks 3 incentive types; 1 of them, including this one, are tax credits. Credits reduce what solar owners owe directly, on top of whatever the other stacked types provide.
How this incentive fits Utah's solar picture
The UT Residential Clean Energy Tax Credit is a state-level credit against what you owe, tracked as one of Utah's solar incentives in the DSIRE registry. Eligibility is scoped to residential customers, with a stated benefit of 25% of cost, max $800. 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 credit delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. Utah has 4 solar incentive programs indexed in DSIRE, including adjacent options like UT Solar Property Tax Exemption, UT Net Metering. 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.
Your next step
- See Utah's full solar profile, score, irradiance, rates, payback, and every program you can claim. Utah solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other Utah incentives
Frequently asked questions
What is the UT Residential Clean Energy Tax Credit?
How does the UT Residential Clean Energy Tax Credit work?
Who is eligible for the UT Residential Clean Energy Tax Credit?
How does this incentive affect solar ROI in Utah?
Are there other solar incentives in Utah?
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.