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Idaho Solar Incentives: Tax Credits & Rebates Guide
  • Written by Alison Plaut
  • |
  • Edited by Jamie Cesanek
  • |
  • Last updated 09/01/2023

Estimate your home’s solar cost and savings

20-year savings
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$2,399
Incentives
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$1,992
Upfront cost
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$6,835
Payback period
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8 years
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Key Points

  • The cost of solar panels in Idaho has dropped by 54% in the last decade.
  • You can benefit from Idaho solar incentives and federal rebates to save money on your solar panel purchase.
  • Solar panels offer a long-term return on investment with electricity cost savings and net metering opportunities.
  • Idaho solar panels cost an average of $3.46 per watt or around $27,680 for an 8 kW system.

Solar power in Idaho

Idaho is steadily improving its solar power industry. According to the Solar Energy Industries Association (SEIA), the state has installed 811 megawatts (MW) of solar, enough to power nearly 105,000 homes. The SEIA also projects 952 MW of new installations in the next five years, more than doubling the state’s solar power capacity.

Idaho residents have the opportunity to reduce energy costs while investing in solar power. In addition to the federal solar tax credit, Idaho offers many state and local incentives for homeowners to reduce solar installation costs. 

If you are curious about solar power and want to learn more, SaveOnEnergy is a great place to start. We can help you learn about the costs of Idaho solar, federal and state solar incentives, and benefits of going solar in Idaho.

Ready to go solar? Call 877-307-7668to be connected with a solar expert today!

Get your free solar savings estimate

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Idaho solar panel cost

The cost of solar panels is measured in dollars per watt and is determined by several factors. The national average solar cost is $3.67 per watt for a typical 8.6 kilowatt (kW) system, according to the Lawrence Berkeley National Laboratory. This brings the total U.S. average solar system cost to $31,558. However, solar panels in Idaho tend to skew cheaper, at $3.46 per watt for the average 8 kW system, totaling $27,680 before tax credits or rebates.

Price per wattSystem size (kW)Installed cost
Idaho$3.468 kW$27,680
U.S.$3.678.6 kW$31,558

How does Idaho solar save you money?

Despite the significant investment, homeowners can expect to enjoy years of electricity savings over the long term. The average monthly electricity bill in Idaho currently costs $103.69, an expense you could greatly reduce or eliminate by installing solar panels. The typical Idaho solar owner experiences an average payback period of 15 years, meaning you could enjoy many years of electricity savings after your solar panels are paid in full. 

Although the costs of solar panels have decreased dramatically over the last decade, other related soft costs have not declined in tandem. Soft costs are expenses for solar permitting, inspection, interconnection, and installation. 

Solar systems are customizable — your household’s unique energy goals will help you determine your system size. The following table displays a range of potential solar system sizes, costs, and number of panels at the Idaho average price per watt of $3.46.

System sizeTotal costNumber of solar panels*
4 kW$13,84010–13
6 kW$20,76015–20
8 kW$27,68020–27
10 kW$34,60025–33
12 kW$41,52030–40

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Idaho solar panel incentives or rebates

Incentives and rebates can play a big part in offsetting the total cost of purchasing solar panels. Homeowners in the U.S. can claim the Residential Clean Energy Credit. It gives homeowners a 30% federal tax credit on their federal income taxes for systems installed between 2022 and 2032, with no maximum limit. This credit is available for both primary and secondary residences.

It will drop to 26% in 2033, 22% in 2034, and will expire in 2035 unless Congress renews the legislation. However, there’s no guarantee the credit will be extended, so planning to install solar panels before 2032 can give the greatest tax savings. 

Idaho offers additional solar incentives to help make solar more accessible. You can check the Database of State Incentives for Renewables and Efficiency (DSIRE) for new and current incentives in your area. 

Program Description
Residential Alternative Energy Tax DeductionTaxpayers in Idaho can receive an income tax deduction for 40% of the total cost of solar energy equipment in the first year of installation and 20% for the next three years, with a limit of $5,000 per year and $20,000 total.
Net MeteringAlthough Idaho doesn’t offer net metering statewide, three of its utilities (Rocky Mountain Power, Avista Utilities, and Idaho Power) offer this incentive to customers.

Solar incentives in Boise

Boise, Idaho, is committed to the future of solar energy, earning a Gold Designation from SolSmart for its solar accessibility and efficiency in the community. Residents who are customers of Idaho Power, the utility serving Boise, can apply for net metering to earn credits on their electric bills.

To apply for Idaho Power’s net metering program:

  • Start by examining this checklist to determine if your system qualifies.
  • Apply to connect your system to the grid.

Once approved, use this rate schedule to determine how your electricity will be billed.

Why choose Idaho solar power?

Installing solar panels in your Idaho home offers significant benefits. Some of the most notable advantages of solar are reducing energy costs, achieving energy independence, and doing your part to help the environment. 

Lower energy costs

The most well-known and advertised benefit of installing solar panels on your home is the significant reduction of energy costs. Solar panels capture sunlight and convert it into energy to power your home. When you choose to power your home with solar energy, you can significantly reduce your electricity bill from your local utility. Over its lifetime, your Idaho solar system offers a significant return on investment.

Increase energy independence

Related to lowering your energy costs, installing home solar panels will reduce your dependence on the traditional electrical grid. As energy prices increase over time, you will be less affected by these changes. Additionally, if you invest in a solar battery, you’ll be better equipped for power outages.

Go green

Solar power is a form of green energy. When installed on your home, solar can reduce your home’s carbon footprint and environmental impact. Solar is also a renewable energy source — producing solar power does not deplete the sun. Its production does not emit greenhouse gasses like burning fossil fuels.

Should I buy or lease my solar panels?

Idaho residents have the option to buy or lease solar panels for their homes. There are advantages to each option, but you will save more money when you purchase your solar panels. You’ll be eligible for the federal tax credit plus Idaho solar incentives. In addition, purchasing solar panels can increase your home’s resale value by $15,000.  

Purchasing a solar system may not be accessible to all budgets. Idaho residents still have other options to consider to achieve the benefits of solar energy. The following table explores the advantages and disadvantages of several popular ways to access solar in Idaho.

Payment MethodBenefitsDrawbacks
Cash purchaseFull ownership of panels, long-term electricity savings, eligible for incentives, can boost a home’s resale valueHigh upfront costs, expensive to relocate panels to a new home if you move soon after
Solar loanFull ownership of panels, eligible for incentives, long-term electricity savingsInterest payments
Solar leaseElectricity bill savings, no upfront costs or maintenance costsFixed monthly payment to a solar leasing company for up to 25 years, no ownership, ineligible for incentives, annual price escalator
Power purchase agreementElectricity bill savings, no upfront costs or maintenance costsPayments to a solar developer for up to 25 years, no ownership, ineligible for incentives, annual price escalator
Community solar programsEasy to sign up, no extra upfront costs, power home with green energy, lower energy billsNo ownership of panels, ineligible for incentives

Idaho solar panel companies

Many well-qualified solar panel providers and installers are available in Idaho to help meet your solar panel needs. To begin the process, you will need to conduct some basic research to find the right company for you. SaveOnEnergy can help. We have vast resources and information to help you familiarize yourself with the solar power industry. 

When you’re ready, we can connect you with an installer in your area. Find information on the best Idaho solar installation companies by filling out our solar estimator or calling the number on your screen to speak with an expert.

Solar installerYear foundedFinancing optionsWarranty terms
Lumio solar company logo2020Cash purchase, solar loan, lease, or PPA25-year manufacturer warranty and 10-year quality-of-work guarantee
Primitive Solar Company Logo2018Cash purchase or solar loan30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
Sunpower solar company logo1985Cash purchase, solar loan, or lease25-year full system warranty

What to look for in a solar contractor

Idaho state solar contractors should hold professional certifications from a reputable organization like the North American Board of Certified Energy Practitioners (NABCEP). Ask for their licenses and certifications, and check those with national standards. 

Understanding the quality of the products, manufacturers, warranties, and financing options can help you when choosing an Idaho solar contractor. Check online reviews and ask for recommendations from people you know who installed solar. You want a solar contractor who is vetted, reliable, and certified.

Beware of free solar panels in Idaho scam

There is no such thing as free solar panels in Idaho or anywhere else. Scammers may offer free solar panels to lure customers into a misleading contract. On the other hand, some installers may use inaccurate language like free or cheap solar to describe loans. Don’t be fooled — solar panels are a significant financial investment, even with incentives and rebates.

Important solar installation factors to consider

While solar panels are a viable option to keep your energy costs down and reduce negative environmental impact, don’t rush into a contract. Before installing solar panels, take the time to determine which solar panels are best for your home and consider several important factors:

  • Roof condition: You don’t want to make a major investment on a roof that will need to be replaced well before you have received a substantial return on that investment. A solar panel array will also work best on roofs facing south with a slope from 15 to 40 degrees.
  • Sunlight access: Direct exposure to sunlight is required to achieve maximum efficiency from solar panels. Ensure that your solar panels aren’t blocked from the sun by trees or other obstructions. 
  • Neighborhood rules: Often, homeowners associations (HOAs) impose rules and restrictions concerning the installation of solar panels. However, Idaho has a solar access law preventing HOAs from blocking solar installations.

Solar power FAQs

  • How much you pay for solar panels in Idaho will depend on a variety of factors, including the configuration, quality, and size of your system, added features, and permitting and labor costs. The average cost of an Idaho solar system is $27,680. Your net price can be significantly reduced with available tax credits, rebates, and other financial incentives.

  • Investing in solar panels is worth it in Idaho. Many solar systems can support your energy usage for over 25 years. The decrease in electricity bills and increase in home value make solar panels in Idaho a strong investment.

  • There are many excellent solar installers in Idaho. If you are considering an installation on your home, SaveOnEnergy can help you get started in finding the right company for you. Be sure to thoroughly research all your options before signing a solar contract.

  • Solar power is both a green and renewable energy resource. An investment in solar panels can help reduce the carbon footprint of your home.

Solar energy by state

Is solar right for your home?
Get an estimate of solar cost and savings at your home.