Is solar worth it in Idaho?
For a typical Idaho home in 2026, solar is not worth it: about a 18.3-year payback and $3,599 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 18.3 yrs3.8 kW, paying cash
- Electricity price
- 12.7¢per kWh, U.S. 18.0¢
- Solar production
- 1,425kWh per kW per year
- Exports credited at
- ~36%Varies by utility
The numbers for a typical Idaho home
| Electricity use | 894 kWh a month (Idaho average) |
|---|---|
| Best-value system | 3.8 kW, producing 5,416 kWh a year (50% of use) |
| Price | $14,710 at about $3.45/W; $8,826 after state incentives |
| First-year savings | $539 |
| Payback | 18.3 years |
| 25-year net | $3,599 (2.6% a year return) |
| Rate increase assumed | 1.8% a year, from Idaho's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is cheap: 12.7¢ per kWh, 30% below the U.S. average (18.0¢), so each solar kWh saves less.
- Exported solar is typically credited at about 36% of retail, so systems pay best when sized for what you use yourself.
- A typical system here produces about 1,425 kWh per kW per year (ranked #17 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Idaho
Varies by utility. Idaho has no statewide net metering law; each utility's rules are set by the PUC. Idaho Power moved new customers to real-time net billing, paying time-varying export rates (for June 2025-May 2026 roughly 15.7 cents on summer peak but about 3 cents most of the year). Avista still offers net metering; Rocky Mountain Power's Idaho terms have been under review.
Idaho Power non-legacy (applied after Dec 20, 2020): exports measured in real time and credited at an annually updated Export Credit Rate (ECR) based on avoided costs. 2025-26 ECR: ~15.68 cents summer on-peak, ~3.39 cents summer off-peak, ~2.90 cents non-summer.
- Netting: varies
- Unused credits: Idaho Power: dollar credits carry forward. Avista: kWh credits roll over with annual reset.
- System size limit: 25 kW
- Fixed charges: Standard service charges. Idaho Power residential on-site generation customers are on Schedule 6.
- Last major change: Idaho Power real-time net billing with ECR effective Jan 1, 2024 (Order 36048); first annual ECR update Order 36785 (Sept 30, 2025) limited avoided energy value cut to 40%.
- Pending: Idaho Power 2026-27 ECR annual update (value not confirmed). Rocky Mountain Power Idaho net billing case (PAC-E-25-02; Order 36845, Nov 2025) - details not verified.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Idaho Power | 4.5¢/kWh | Weighted average export value estimated ~4-5 cents given seasonal ECR (15.68 summer on-peak, 3.39 summer off-peak, 2.90 non-summer for 2025-26). Legacy customers (pre-Dec 20, 2020) grandfathered on net metering until 2045. |
| Rocky Mountain Power (PacifiCorp) - Idaho | Net billing (reduced export credit) | PUC order Nov 2025 (No. 36845) on customer generation; terms not verified - treat as uncertain. |
| Avista Utilities - Idaho | ~100% of retail | Net metering (Schedule 63) with kWh rollover and annual reset; verify for changes. |
Solar incentives in Idaho
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Idaho Residential Alternative Energy Income Tax Deduction | tax credit | Deduction (not credit) of 40% of system cost in year one and 20% in each of the next three years; max $5,000 per year, $20,000 total. Eligibility: Idaho taxpayers installing solar on their residence. | active |
What solar costs in Idaho
A fair cash price is around $3.45 per watt before incentives. For the 3.8 kW system that fits a typical home, expect roughly $11,100 to $15,700; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 23,850
- Share of homes
- 2.6%
- Residential solar capacity
- 164 MW
- Growth over the past year
- +5.7%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Idaho
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Idaho Power | 540,032 | 12.6¢ | 904 kWh/mo | Not worth it |
| Avista | 129,181 | 14.3¢ | 911 kWh/mo | Close call |
| PacifiCorp (Rocky Mountain Power / Pacific Power) | 75,599 | 14.7¢ | 816 kWh/mo | Not worth it |
| Kootenai Electric Cooperative | 31,004 | 14.4¢ | 1,123 kWh/mo | Close call |
| City of Idaho Falls | 29,403 | 10.3¢ | 925 kWh/mo | Not worth it |
| Northern Lights | 18,172 | 13.2¢ | 1,073 kWh/mo | Not worth it |
| Fall River Rural Electric Cooperative | 15,952 | 11.9¢ | 1,179 kWh/mo | Not worth it |
| United Electric Co-op | 5,169 | 9.1¢ | 1,580 kWh/mo | Not worth it |
| Inland Power & Light | 2,175 | 10.2¢ | 1,435 kWh/mo | Not worth it |
| Lower Valley Energy | 1,663 | 7.4¢ | 1,858 kWh/mo | Not worth it |
| Missoula Electric Cooperative | 44 | 11.7¢ | 1,068 kWh/mo | Not worth it |
Solar by city in Idaho
- Boise City17.9-yr payback · Not worth it
- Meridian17.6-yr payback · Not worth it
- Nampa18.1-yr payback · Not worth it
- Idaho Falls15.8-yr payback · Not worth it
- Caldwell18.3-yr payback · Not worth it
- Pocatello17.7-yr payback · Not worth it
- Coeur d'Alene13.4-yr payback · Close call
- Twin Falls17-yr payback · Not worth it
- Post Falls13.1-yr payback · Close call
- Rexburg16.1-yr payback · Not worth it
- Lewiston18-yr payback · Not worth it
- Eagle18-yr payback · Not worth it
- Kuna17.6-yr payback · Not worth it
- Moscow12.5-yr payback · Close call
Protect yourself when buying
- Check the license. Idaho Division of Occupational and Professional Licenses (DOPL) electrical contractor license; contractor registration. Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. No statewide HOA protection law; solar easements authorized.
- Community solar. No statewide program; limited utility offerings.
Questions about solar in Idaho
Is solar worth it in Idaho in 2026?
For a typical Idaho home, solar is not worth it. A 3.8 kW system costing about $8,826 after state incentives saves about $539 in the first year and pays back in about 18.3 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Idaho?
A reasonable cash price is around $3.45 per watt before incentives, or roughly $11,100 to $15,700 for a 3.8 kW system.
Does Idaho have net metering?
Idaho has no statewide net metering law; each utility's rules are set by the PUC. Idaho Power moved new customers to real-time net billing, paying time-varying export rates (for June 2025-May 2026 roughly 15.7 cents on summer peak but about 3 cents most of the year). Avista still offers net metering; Rocky Mountain Power's Idaho terms have been under review.
Is there a solar tax credit in Idaho?
The 30% federal credit for homeowners ended for systems installed after 2025. Idaho offers: Idaho Residential Alternative Energy Income Tax Deduction.
How do I check a solar installer's license in Idaho?
Idaho Division of Occupational and Professional Licenses (DOPL) electrical contractor license; contractor registration.. Look up any installer with the state's license search at https://dopl.idaho.gov/.
Policy research current as of October 2026; sources include puc.idaho.gov, renewableenergyworld.com, programs.dsireusa.org. Electricity data: EIA, through July 2026. Found something out of date? Tell us.