State solar guide
Idaho solar economics in 2026 depend entirely on your utility rate, available state incentives, and net-metering rules. The federal residential credit expired December 31, 2025. We present the honest picture for your location.
Sources: ElectricChoice June 2026 | NREL PVWatts (Boise averages 5.0 to 5.5 peak sun hours per day; Twin Falls similar; Northern Idaho lower) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Idaho has no uniform statewide net metering requirement. Policies vary significantly by utility. Idaho Power, which serves the Boise metropolitan area, Twin Falls, and most of the Snake River Plain, transitioned to net billing in January 2024. New customers receive compensation approximately 32% lower than prior net metering, based on Idaho Power's avoided-cost Schedule 84. Only customers with systems installed on or before December 20, 2019 retain grandfathered net metering through 2045. Avista, which serves northern Idaho including the Coeur d'Alene and Sandpoint areas, offers full net metering for systems under 100 kW with credits expiring March 31 annually. Rocky Mountain Power currently offers net billing at approximately $0.09 to $0.10 per kWh - near full retail in practice - but has pending Schedule 136 changes awaiting Idaho Public Utilities Commission (IPUC) approval that could reduce credits to $0.04 per kWh with 12-month credit expiration.
Idaho Power's net billing rate under Schedule 84 averages approximately $0.04 to $0.06 per kWh for exported solar, compared to the retail rate of $0.1263 per kWh - roughly 30 to 50% of retail. For Idaho Power customers, self-consumption is essentially the only path to meaningful solar savings, as the export value is very low. Avista customers in the north have significantly better economics with full retail net metering. The Rocky Mountain Power Schedule 136 pending change is a material risk factor for RMP customers in eastern Idaho.
Program: NM2_avoided_cost. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Idaho utility before contracting. Current program details at DSIRE (opens in new tab).
Rocky Mountain Power's pending Schedule 136 changes, awaiting Idaho Public Utilities Commission approval, could reduce export compensation from the current near-retail rate to approximately $0.04 per kWh with 12-month credit expiration. The IPUC ruling timeline is uncertain. Customers in RMP service territory should verify current export rates and pending case status before contracting.
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Idaho homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Idaho Residential Alternative Energy Income Tax Deduction State income tax deduction (not a credit) This is a deduction, not a credit. The actual dollar benefit is much smaller than the deduction amount - a $20,000 deduction over 4 years saves approximately $1,160 in Idaho taxes at the 5.8% top rate. Consult your tax advisor to calculate benefit based on your specific income tax situation. | Up to $20,000 in total deductions over 4 years (annual cap $5,000). Tax savings: approximately $1,160 at the top 5.8% rate. Idaho allows a deduction from taxable income for the cost of alternative energy systems. Year 1: 40% of system cost; Years 2 through 4: 20% per year. Annual deduction cap: $5,000. Total maximum: $20,000 over 4 years. Value is the deduction amount multiplied by your marginal Idaho income tax rate (top rate 5.8%). | Idaho residents purchasing and installing qualifying alternative energy systems in Idaho. A deduction reduces taxable income, not taxes directly; value depends on your marginal Idaho tax rate. | Active | DSIRE (opens in new tab) |
| Rocky Mountain Power Wattsmart Battery Program (Idaho) Utility rebate (battery storage) Applies only to customers in Rocky Mountain Power territory in Idaho. Verify current program availability, approved battery models, and enrollment requirements directly with Rocky Mountain Power before purchasing. | $400 per kW upfront (maximum $2,000) plus $15 per kW per year for 3 years Upfront rebate of $400 per kW for qualifying battery storage systems in Rocky Mountain Power territory in Idaho, up to $2,000. Plus $15 per kW per year for three years ongoing. | Rocky Mountain Power residential customers in Idaho installing approved battery storage systems. Pre-approval required before purchase. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in Idaho
Rocky Mountain Power Wattsmart Battery Program: $400 per kW upfront (up to $2,000) plus $15 per kW per year for three years for approved battery storage in RMP Idaho territory. This is the only meaningful incentive for battery storage in Idaho given the absence of other programs. Verify current enrollment and approved battery models directly with Rocky Mountain Power.
Savings example
This example uses real Idaho market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
System size 11 kW at market average of $3.19 per watt. Annual production estimated at 15,400 kWh based on Boise at 5.0 to 5.5 peak sun hours per day (NREL PVWatts). Assumes 80% self-consumption at $0.1263 per kWh retail value; 20% exported at Idaho Power Schedule 84 avoided-cost rate of approximately $0.05 per kWh. No Idaho sales tax exemption. Utility rate escalation at 3% annually. Federal residential credit: $0 (expired). Idaho alternative energy deduction: approximately $1,160 total tax savings over 4 years at 5.8% rate. This example models the Idaho Power (Boise metro) worst-case sub-scenario, where very low export compensation at avoided-cost rates pushes payback well beyond the statewide 14 to 19 year range, which includes Avista territory customers in northern Idaho who benefit from full retail net metering. Avista customers in northern Idaho with full retail net metering see materially different results (closer to 14 to 18 year range). EnergySage separately estimates approximately $6,793 in 25-year net savings on a typical Boise system. Figures are illustrative; your in-home assessment will use your actual bills.
Idaho Idaho Power customer - Boise area (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Idaho does not have a statewide residential solar permit fee cap. Permit fees and timelines vary significantly by jurisdiction. Ada County (Boise metro) and the City of Boise have established solar permit processes. Boise building permit fees for residential solar typically run $150 to $400. Idaho Power utility interconnection review (for the dominant service territory) adds 4 to 10 weeks. Avista interconnection in northern Idaho tends to be faster. Total contract-to-energization time in Idaho typically ranges from 8 to 16 weeks in Boise; potentially faster in Avista territory. Idaho's higher installed cost per watt ($3.19 average) reflects a smaller installer market and higher logistics costs in rural areas.
Idaho's small installer market means fewer contractors, potentially longer scheduling lead times, and higher installed costs in rural areas than in urban Idaho markets. Verify that your contractor is familiar with Idaho Power or Avista interconnection requirements specifically, as these utilities have materially different processes.
Commercial solar in Idaho
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Idaho business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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