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Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed

Utah home energy costs & incentives

Rebates on hold, and Utah's long-standing solar tax credit has quietly stopped covering rooftop solar — with the rest sunsetting in 2028.

Prices pulled August 16, 2026

What energy costs here

13.07¢

per kWh, residential electricity

24% below the national average of 17.3¢. 45th most expensive of 51.

Up 25% since 2021 (5.8% a year), against 27% nationally.

$0.98

per therm, residential natural gas

$10.19 per thousand cubic feet, 2025 annual. National average $1.48/therm.

Up 13% since 2021 (3.2% a year).

Heat pump vs. gas furnace — Close call

Utah's electricity-to-gas price ratio works out at 3.9-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.

Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates

State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.

What's different in Utah

The Office of Energy Development describes Utah's Home Energy Rebate programme as on hold until further notice. That is a different thing from never launched, and it means the sensible read is to plan without it rather than to watch for a date.

The more important Utah-specific fact is about the state tax credit, because it has changed underneath a lot of people. The Renewable Energy Systems Tax Credit no longer covers residential solar photovoltaics — that exclusion applies to systems installed from 2024 onwards. If you have been told Utah has a solar credit, that information is out of date for the technology most people mean by it.

What the credit still covers is wind, geothermal, hydro, biomass and thermal systems, and it is scheduled to sunset for systems placed in service after the start of 2028. There is a real deadline there for the technologies that remain eligible.

The claiming mechanic is unusual and easy to trip over: it is a non-refundable credit, and you apply through the Office of Energy Development with a fee to obtain a tax credit certificate before claiming it on your return. Non-refundable means it can only reduce tax you actually owe — if your Utah liability is small, so is the benefit, no matter what the system cost.

Weatherization is income-qualified and delivered by regional agencies rather than by the state directly, so you apply to the agency covering your county.

Utah's winter inversions give electrification an air-quality argument that most states do not have. Along the Wasatch Front, what comes out of the flue does not disperse — it settles into the valley where you live. That is a genuine reason to weigh a heat pump differently here, separate from the running-cost maths.

Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.

Utah programs

Utah Renewable Energy Systems Tax Credit

Non-refundable state credit for wind, geothermal, hydro, biomass and thermal systems — residential solar PV is excluded for systems installed from 2024. Requires applying for a certificate before claiming. Sunsets for systems placed in service after 1 January 2028.

Program details

Utah Weatherization Assistance Program

Free income-qualified weatherization delivered by regional agencies. Apply to the agency serving your county rather than to the state.

Program details

The federal position — the same everywhere

  • Residential Clean Energy Credit (Section 25D)Ended

    Ended. No credit for expenditures made after 31 December 2025.

  • Energy Efficient Home Improvement Credit (Section 25C)Ended

    Ended. No credit for property placed in service after 31 December 2025.

Full detail, sources and changelog on the national incentive tracker.

Where to check for your address

Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.

Not tax advice

Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.

If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.

Run the numbers for your house

These open with Utah's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.

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