Short answer: the 30% federal solar tax credit for homeowner-owned systems ended on December 31, 2025. If you buy a solar system with cash or a loan in 2026, there is no federal tax credit to claim – mand Utah’s state solar credit ended even earlier. That’s the honest starting point, and any installer who tells you otherwise is working from an outdated pitch deck.
But “no tax credit” doesn’t mean “no incentives” and it doesn’t automatically mean “bad investment.” Utah homeowners still have real levers in 2026: utility export credits, battery incentives, and equipment prices that are a fraction of what they were a decade ago. This guide walks through exactly what changed, what’s still on the table, and what to verify before you sign anything.
The federal Residential Clean Energy Credit (Section 25D) let homeowners claim 30% of the cost of a purchased solar system against their federal taxes. Under its original schedule, it was supposed to run at 30% through 2032 before phasing down.
That changed on July 4, 2025, when the One Big Beautiful Bill Act (Public Law 119-21) was signed. The law ended the residential credit for expenditures after December 31, 2025 – roughly seven years ahead of schedule. Systems needed to be fully installed by the end of 2025 to qualify. Starting January 1, 2026, purchased home solar no longer earns a federal credit.
Yes. If your system was installed and placed in service by December 31, 2025, you can claim the full 30% credit when you file your 2025 federal return using IRS Form 5695. If the credit is larger than what you owe this year, the unused portion carries forward to future tax years. Keep your contract, proof of payment, and permission-to-operate documentation, and confirm the details with your tax professional- Gardner Energy installs solar; we don’t give tax advice.
Utah’s Renewable Energy Systems Tax Credit (RESTC) once gave homeowners 25% of system cost back, up to a cap. But it phased down for years — $1,600 through 2020, $1,200 in 2021, $800 in 2022, $400 in 2023 — and residential solar PV systems installed in 2024 or later are no longer eligible. So for a solar panel installation in 2026, there is no Utah state tax credit either. (The state credit still exists for a few other residential technologies, like geothermal and wind, through systems placed in service before 2028 — but not rooftop solar.) You can confirm the current program status on the Utah Office of Energy Development’s RESTC page.
Here’s where the conversation gets more useful. Three things still work in your favor in Utah.
Utah doesn’t have traditional net metering anymore, but Rocky Mountain Power’s net billing program (Schedule 137) still pays you for the solar power you export to the grid. As of the current tariff, residential export credits are roughly 5.6¢ per kWh in summer (June–September) and 4.7¢ per kWh in winter, compared with the roughly 10¢+ per kWh you pay for power you buy. Rates update annually on March 1, so ask for the current figure in writing with any quote.
The design lesson: because exported power earns less than the power you buy, systems sized and designed for self-consumption — using your own solar as you produce it — deliver better returns than oversized systems that dump power onto the grid.
If you pair solar with a battery, Rocky Mountain Power’s Wattsmart Battery program currently offers an upfront enrollment incentive — about $1,000 for batteries under 10 kW and $2,000 for larger systems; plus ongoing annual bill credits for letting the utility draw on your battery during peak demand. Qualifying models include the Tesla Powerwall 3, FranklinWH aPower, and others, and there’s a multi-year participation commitment. Program terms are scheduled to change in mid-2026, so verify current details on Rocky Mountain Power’s Wattsmart Battery page before you count on a specific number. A battery also gives you something no tax credit ever did: backup power when the grid goes down. We covered how that works in our guide to solar with battery storage in Utah.
The economics of solar were never only about tax credits. Panel and inverter prices have fallen dramatically over the past decade, and utility rates keep moving in one direction. Every kilowatt-hour your system produces is a kilowatt-hour you don’t buy at retail rates – for 25+ years. The payback period on a purchased system in 2026 is longer than it was in 2025, but for many Utah homes it still pencils out. The key is running the numbers honestly, without a phantom 30% discount baked in.
Here’s a wrinkle worth understanding. While the homeowner credit ended, the commercial clean energy credit (Section 48E) did not — and companies that own solar systems on your roof through a lease or power purchase agreement can still claim roughly 30% on qualifying projects, subject to deadlines (generally, systems placed in service by the end of 2027, or longer for projects that began construction by July 4, 2026).
Expect lease and PPA marketing to lean hard on this in 2026: “the tax credit is gone unless you lease.” Technically true — but the credit goes to the leasing company, not to you, and whether any of that value reaches you depends entirely on the contract terms. Escalator clauses, transfer restrictions when you sell your home, and 20–25-year commitments haven’t gone anywhere. Before you sign, read our breakdown of solar leasing in Utah — smart strategy or costly mistake.
It depends on your roof, your usage, and your goals — and anyone who gives you a one-word answer is selling something. What we can say from more than 20 years of installing solar in Utah:
For a fuller picture of the benefits that still hold up, see solar power benefits in Utah in 2026: what’s still true, what to verify.
No — not for homeowner-purchased systems. The 30% Residential Clean Energy Credit (Section 25D) ended for expenditures after December 31, 2025. Commercial systems and third-party-owned systems (leases/PPAs) may still qualify under Section 48E, but that credit goes to the system owner.
Yes. Systems placed in service by December 31, 2025 qualify for the full 30% on your 2025 federal return (IRS Form 5695), and unused credit amounts carry forward. Confirm specifics with your tax professional.
No. Utah’s Renewable Energy Systems Tax Credit for residential solar PV ended for systems installed after 2023. Other technologies, like residential geothermal and wind, retain a limited credit through systems placed in service before 2028.
Yes. Commercial solar projects can still qualify for the Section 48E credit, generally requiring systems to be placed in service by the end of 2027 (with more runway for projects that began construction by July 4, 2026). If you own a business or commercial building in Utah, this is the window worth acting on — talk to us about commercial solar timelines.
Yes, just not tax credits for homeowners. Rocky Mountain Power’s net billing program pays export credits for the power you send to the grid, and the Wattsmart Battery program offers upfront incentives and annual bill credits for qualifying batteries. Both programs’ terms change periodically, so verify current rates before signing.
Gardner Energy has been designing and installing solar in Utah since 2004 — through every version of the federal credit, the rise and phase-out of the state credit, and every change to net metering. We’ll run your numbers with 2026 rules, not 2025 marketing.
Call us at 801-689-2618, email estimating@gardner-energy.com, or get started here for a no-pressure assessment of whether solar — with or without a battery — makes sense for your home.
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We partnered with Kay’s Creek Elementary School to build a sustainable learning environment for their students. We installed a 275 kW solar system utilizing a ballast roof mount. This complete design-build project leverages existing rooftop space to generate clean energy. The 275 kW system is estimated to offset the carbon emissions equivalent to planting 16,589 trees. This project shows our commitment to providing sustainable solutions for educational institutions.
We partnered with Weber State University to install a new 950 kW parking lot solar canopy on their campus in Ogden, UT. This complete design-build project utilizes existing space to generate clean energy minimizing the university’s carbon footprint. The 950 kW system is estimated to offset the carbon emissions equivalent to planting 57,308 trees, demonstrating a significant contribution to environmental sustainability.
We partnered with Wasatch Commons to install 96 solar panels on an existing carport. This solar system generates 33 kW of renewable energy and is tied into Enphase microinverters. This project was the result of Wasatch Common’s commitment to environmental accountability, and we look forward to future opportunities to help them reach their renewable energy goals.
We partnered with Wadman Corporation to install a grid tied 171 kW solar array at their Ogden, Utah headquarters. This project utilized the space primarily on their unattached garages to create an annual power production of 239,999 kWh. This was such a smooth project with Wadman Corporation that we have worked with them on several solar projects since.
We partnered with Weber State University to install a new 950 kW parking lot solar canopy on their campus in Ogden, UT. This complete design-build project utilizes existing space to generate clean energy minimizing the university’s carbon footprint. The 950 kW system is estimated to offset the carbon emissions equivalent to planting 57,308 trees, demonstrating a significant contribution to environmental sustainability.
Our team installed a new 140 kW for Davis County School district at Bountiful Elementary School in Bountiful, Utah. This ballast roof system utilizes open space on their roof to generate clean energy. It is estimated that because Davis County School District has invested in this 140 kW system, they are offsetting their carbon emissions equivalent to planting 8,446 trees.
We partnered with Salt Lake Community College to design and build them a 143 kW solar system on a parking canopy. This innovative solution leverages existing space to generate clean energy, minimizing the college’s carbon footprint and providing shade and protection for vehicles. This project is estimated to offset emissions equivalent to planting 8,631 trees, contributing greatly to environmental sustainability.
We partnered with Davis County School District to install a new 40 kW ballast roof system at Sunburst Elementary School in Layton, Utah. This project utilizes space on the roof of the elementary school to generate clean energy for the school. In fact, this 40 kW system is estimated to offset the carbon emissions equivalent to planting 2,413 trees. Sunburst Elementary is contributing significantly to both the knowledge and the environmental sustainability for it’s students.
