Idaho Solar Incentives, Cost & Policy (2026)
Written by Aditya Patil · Last updated 2026-09-24
Thinking about going solar in the Gem State? Idaho may not have a statewide net metering mandate, but it offers a robust tax deduction and low-interest loans to help homeowners make the switch. Here is what you need to know about going solar in Idaho in 2026.
$114
Avg. monthly bill
14.37¢/kWh
Avg. rate
6.3 kW
Est. System Size
for 100% offset
4.62
Peak Sun Hours
Cost of solar in Idaho
Currently, authoritative median installed residential cost data (such as LBNL's Tracking the Sun report) is unavailable for Idaho. However, based on the state's average electricity consumption of 793.7 kWh/month, an Idaho household looking to completely offset their electricity use would need approximately a 6.32 kW solar system.
Without state-specific cost data, it is more critical than ever to collect multiple quotes from local Idaho solar installers to ensure you're getting a fair price. While exact payback periods cannot be perfectly estimated without knowing your upfront cost, you can still take advantage of federal and state incentives to significantly reduce your net expense.
Incentives & rebates
Idaho provides a few notable state-level incentives, including a generous tax deduction rather than a direct tax credit. Combined with utility-specific programs and the federal solar tax credit, these can make solar much more accessible.
| Program | Amount | Status |
|---|---|---|
| Idaho Alternative Energy Device Income Tax Deduction | An Idaho income tax deduction (not a dollar-for-dollar credit) equal to 40% of the cost of a solar, wind, or geothermal energy device in the year it is installed, plus 20% of cost in each of the following 3 years — capped at $5,000 deducted per year, for a maximum $20,000 in total device cost claimed over 4 years. Reported on Idaho Form 39R, Part B, line 5. | open |
| Idaho State Energy Loan Program | Low-interest loans up to $40,000 for home energy upgrades, including solar installations; borrower chooses a 3-year term at 3%, a 5-year term at 5%, or a 7-year term at 7% interest. | open |
| Rocky Mountain Power Wattsmart Batteries (Idaho) | Upfront incentive of $1,000 for a qualifying residential battery system under 10 kW, or $2,000 for a system 10 kW or larger (capped per household), effective July 1, 2026; commercial systems receive $200/kW (pre-approval required above 30 kW). Superseded an earlier 2024 structure of $400/kW upfront plus $15/kW/year for 4 years. | open |
Net metering / export rules
Unlike many states, Idaho does not have a statewide net metering mandate. Instead, the Idaho Public Utilities Commission (IPUC) regulates these policies separately for each investor-owned utility.
In recent years, utilities like Idaho Power and Rocky Mountain Power have transitioned away from favorable 1-to-1 retail net metering towards net billing, where the energy you send back to the grid is credited at a lower, avoided-cost rate. For example, Idaho Power's non-legacy residential customers are credited at varying rates depending on the season and time of day, ranging from around 2.9¢ to 15.6¢ per kWh. Because exports are valued less than the retail rate of 14.37¢/kWh, adding a battery to your solar system to self-consume your generated power may make more financial sense than sending it back to the grid.
| Policy Type | Varies by utility (no statewide mandate) |
| Idaho Power | Net billing (Export Credit Rate based on avoided cost) |
| Rocky Mountain Power | Net billing (Schedule 136 for new customers) |
| Avista | Net metering marketed for systems up to 100 kW |
Idaho Power's Export Credit Rate for non-legacy (net-billing) customers, effective for 2026, is 15.6836 cents/kWh on summer on-peak hours (3-11pm, Mon-Sat), 3.3920 cents/kWh summer off-peak, and 2.9019 cents/kWh non-summer; legacy net-metering customers instead bank full-retail kWh credits with an annual excess-credit transfer window of Dec 1-Jan 31. Rocky Mountain Power's Schedule 136 credited exports at roughly 9-10 cents/kWh (near retail) as of early 2025; RMP proposed cutting this to a time-differentiated credit of about 4 cents/kWh effective October 1, 2025 under IPUC case PAC-E-25-02, but this research could not confirm the case's final outcome — verify current Schedule 136 rates directly before publishing. Avista's net-metering credits are banked as kWh but forfeit annually on March 31; the exact $/kWh credit rate was not confirmed from a Avista tariff document in this pass.
Top utilities in Idaho
| Utility | Residential rate | Customers |
|---|---|---|
| Idaho Power Co | 11.76¢/kWh | 525,751 |
| Avista Corp | 11.62¢/kWh | 128,226 |
| PacifiCorp | 12.11¢/kWh | 74,170 |
Batteries & VPP programs
Because of changes to net billing, batteries are becoming increasingly popular in Idaho to help households maximize the value of their solar power.
Rocky Mountain Power Wattsmart Batteries (Idaho)
A four-year program in which Rocky Mountain Power residential and commercial customers in Idaho install a qualifying home/commercial battery and give the utility permission to draw on its stored energy to help manage the grid, in exchange for an upfront incentive (see id-rmp-wattsmart-batteries) plus, under the program's original 2024 terms, an annual per-kW participation payment. Confirm current ongoing/annual payment terms directly with Rocky Mountain Power, since the July 2026 incentive update only specified upfront amounts.
Estimate your own numbers
Use the solar calculator with your own usage and any quote you've received to see if solar makes sense for your Idaho home.
FAQ
Does Idaho have a solar tax credit?
Yes, Idaho offers the Alternative Energy Device Income Tax Deduction. You can deduct 40% of the cost of a solar energy device from your state taxable income in the year it is installed, plus 20% in each of the next three years, up to $5,000 per year (for a total up to $20,000 over four years). Note that this is a tax deduction, not a dollar-for-dollar tax credit.
Is net metering available in Idaho?
Idaho has no statewide net metering law. Policies depend entirely on your utility. For example, Idaho Power and Rocky Mountain Power have transitioned to "net billing," where exported power is credited at an avoided-cost rate rather than a full retail rate. Avista still offers net metering for systems up to 100 kW, but exact compensation can vary.
How much do solar panels cost in Idaho?
While state-specific public pricing averages from sources like LBNL are not currently available for Idaho, local prices tend to fall near national averages. A typical Idaho household consuming around 794 kWh per month would need roughly a 6.3 kW system to offset their usage entirely. The best way to determine your cost is to compare multiple quotes from local installers.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil