Utah homeowners have one of the best environments for solar energy — but understanding how you’re credited for your extra power is key. That’s where net metering, or more accurately net billing, comes in. Let’s break down exactly how it works in Utah so you can see how solar panels save you money year after year.
What Is Net Metering (or Net Billing)?
Traditional net metering programs allow homeowners to send excess electricity from their solar panels back to the grid in exchange for full retail credit on their utility bill.
Utah’s current system, however, operates under net billing, which works similarly but compensates customers at a slightly different rate. Instead of receiving the full retail rate for exported energy, homeowners receive a credit based on the utility’s avoided cost — the amount the utility saves by not producing or purchasing that power elsewhere.
So while the credit rate is lower than the retail rate, homeowners still save significantly because most of their solar energy is used directly in their home.
How Net Billing Works in Utah
Here’s a simple step-by-step overview of how Utah’s solar billing system functions:
- Your panels generate power during the day, especially when the sun is strongest.
- Your home uses that power first, instantly offsetting your need for grid electricity.
- Any extra power your system produces flows back to the utility grid.
- Your utility tracks how much you send and how much you draw from the grid.
- At the end of the month, you’re billed for the “net” difference, and you earn credits for the surplus you exported.
These credits roll over month-to-month and can help reduce your utility costs during less sunny seasons.
Credit Rates by Utility
Utah’s largest utility, Rocky Mountain Power (RMP), ended traditional net metering in 2020 and replaced it with the current Net Billing program.
Under this program:
- Solar customers receive export credits for excess energy, calculated hourly.
- Credit rates vary slightly each year based on wholesale electricity prices and RMP filings with the Utah Public Service Commission.
- For 2025, these credits typically average between 5 to 6 cents per kilowatt-hour (kWh).
Even though that’s lower than the retail electricity rate of about 11 cents per kWh, most homeowners still see major savings because around 70–80% of solar energy is used directly in the home, offsetting full-price electricity.
Example: A Typical Utah Solar Home
Let’s say your system produces 900 kWh in a month, but your household only uses 700 kWh. The extra 200 kWh flows to the grid, and you’re credited around 5¢ per kWh — a $10 export credit.
The next month, if you use more energy than your panels produce, those accumulated credits help lower your bill. Over time, you’ll see your total electricity costs shrink dramatically, especially during sunny months.
The Long-Term Financial Benefit
While Utah’s net billing doesn’t pay full retail for exported energy, the economics of solar still make strong sense. Most homeowners see:
- Payback periods between 8–11 years
- 20+ years of free electricity after that
- Protection from future utility rate increases
- Higher property value without increasing property taxes
When paired with the 30% Federal Solar Investment Tax Credit (ITC), solar remains one of the best long-term investments a Utah homeowner can make.
Why Homeowners Trust SunLit Solar
At SunLit Solar, we believe solar should be about education, not pressure. Our Utah-based engineers design systems that maximize your self-consumption — meaning more of your power is used by your home instead of being exported at lower rates.
Because we operate on a direct-to-consumer model, there are no sales middlemen or inflated markups — just high-quality engineering and transparent pricing from a licensed, insured, and locally owned team that’s been part of Utah’s solar industry for over 15 years.
If you’re ready to see how much you can save under Utah’s current net billing system, try our Free Solar Calculator. In seconds, you’ll receive an estimate of your solar potential, expected credits, and long-term savings.