Utah may not be the first state you think of when it comes to solar energy, but it should be. This high mountain desert ranks among the top 10 states for solar potential. With rising energy rates and improving technology, the market opportunities ahead for both homeowners and businesses are truly bright.
Solar Snapshot
- Over 99% of Utah‘s electricity still comes from coal and natural gas
- Approximately 38,500 homes have rooftop solar with over 166 megawatts (MW) of capacity
- Utah installed over 238 MW of new solar in 2021, ranking it 20th nationally
- The state has over 1,800 solar companies employing 5,600 workers
Between excellent solar resources and supportive policies like the federal Investment Tax Credit (ITC), analysts predict Utah‘s solar expansion will accelerate rapidly in the coming years. This guide examines everything you need to know about going solar – from costs and payback timelines to reputable local installers. We‘ll also explore solar‘s exciting future in the Beehive state.
The Solar Value Proposition
Before diving into the details, what key factors make Utah well-positioned for solar today?
Irradiation Levels: Utah sees 5-6 peak sun hours per day on average when panels produce at full rated capacity. Some cities like St. George average nearer to 6 hours. This leads to high productivity.
Electricity Rates: While utility rates sit below the national average today, they are rising over time, increasing financial incentives for solar.
Climate: With over 85% of the state experiencing a high, dry desert climate, Utah offers premier solar conditions year-round.
Policy Support: Strong net metering rules let homeowners sell excess power back to the grid along with state/federal tax credits.
Cost of Solar Panels in Utah
In terms of bottom line equipment and installation pricing, solar panels in Utah fall on the higher side compared to other states today. Recent market data indicates costs range from $2.50 per Watt up to $3.00 per Watt depending on your specific project scope.
We break these expenses down in the sections below, including strategies for maximizing long-term savings.
Residential Pricing by System Size
Based on 2021 quotes for rooftop installations from leading Utah installers:
| System Size | Cost (before incentives) |
|---|---|
| 2 kW | $5,000 |
| 5 kW | $13,250 |
| 10 kW | $26,500 |
As you can see, average pricing falls around $2.66 per Watt. Factors like roof type/accessibility, panel efficiency grades, equipment brands, and financing options can all impact actual bids. Generally though, you save on a per-Watt basis when installing larger systems.
Equipment Cost Breakdown
For a representative 6 kW solar panel system, direct equipment expenses break down as:
| Component | Price | % of Total |
|---|---|---|
| Solar modules & inverters | $9,600 | 60% |
| Racking & mounting | $1,500 | 10% |
| Electrical equipment | $900 | 6% |
| Permits & interconnection | $450 | 3% |
| Additional components | $750 | 5% |
The largest share goes towards solar panels and accompanying microinverters or central inverter hardware critical for transforming sunlight into usable AC current.
Factoring in labor, margins, overhead, inspection, and the additional gear needed connects everything, you arrive at the finished installation price.
Federal and State Incentives
The federal solar tax credit allows you to deduct 26% of total system costs from your tax bill each year through 2032. That saves nearly $4,788 off a $15,960 6 kW solar installation. Additional Utah state incentives can discount costs by another 10-15% including:
- Up to $1,200 tax credit through Utah‘s Solar Tax Incentives Program
- Salt Lake City offers a separate 10% renewable energy system credit
- Property tax exemptions on the value solar adds to your home
Between both federal and state programs, total incentives can reduce initial solar pricing by 35-40%.
How Much Solar Do You Need?
Let‘s look at how to right-size a solar system for your home utilizing two key datapoints – average energy usage and sun hours.
The average Utah household consumes 769 kWh per month. Dividing by 30 days gives ~25.6 kWh of daily electricity needs.
In terms of sunlight, Utah cities see between 4.9 to 5.9 peak sun hours per day. The state overall average is approximately 5.26.
Plugging usage divided by peak hours into our solar calculator gives a properly sized system:
25.6 kWh (Daily Usage)
/ 5.26 Hours (Peak Sun)
= 4.9 kW SystemConfirm your specific location‘s stats, but this exemplifies how Utah‘s excellent solar resource allows for smaller, less expensive system sizes than the 6 kW national benchmark.
Choosing a Solar Installer
With over 50 solar companies in Utah, it helps reviewing contractor certifications, experience, warranties and customer feedback before selecting your installer:
- Ask about licensure – NABCEP certification is the gold standard
- Ensure they use Tier 1 equipment from top brands like LG, Panasonic and SolarEdge
- Look for 10-25 year labor + production guarantees
- Check their reputation on EnergySage & other solar broker networks
Our top Utah solar installer picks meeting these criteria include:
- Apollo Energy – Veteran Utah solar provider since 1999, A+ BBB rating
- Smart Wave Solar – Fast-growing local company delivering quality installs
Both contractors back their workmanship and offer flexible financing like $0 down solar loans and PPAs.
Payback Periods and Lifetime Savings
While solar delivers immediate benefits through bill savings, most Utah households get an impressive >15% annual return on their system over its usable lifespan by offsetting normal utility costs.
For a 4.9 kW system running $13,034 after the 30% federal tax credit, cumulative energy savings can payback your initial investment in 15 years. Then you earn pure profit for another 5-10 years given typical system warranties.
Over 25 years, a solar owner could accrue $9,424 in net utility savings according to projections. That‘s an excellentyield especially considering rising retail electricity rates.
Bright Skies Ahead
This report explores how solar power in Utah makes increasing financial sense thanks to generous tax credits, ample sunlight, and insulated electricity costs.
By investing now, you secure cheap, clean energy for decades while contributing to local job growth. With only 2% solar penetration statewide, Utah remains full of untapped potential. I hope this guide gives you the information needed to capture your piece of the sun.
Sincerely,
[Your Name]
John in Salt Lake City installed a 5 kW system last year, saying:
"My February bill dropped from $210 to $32 after switching to solar!"What insightful statistics or personal stories related to Utah solar would you add to inform or inspire readers? I‘m happy to incorporate any solar wisdom you‘d like to share!
