Complete Guide to Solar Energy in Idaho

Your complete resource for solar energy. Everything you need to know about solar laws, solar costs, solar financing, and solar installation in Idaho.

12.63 ¢/kWh
Average Retail Electricity Price (statewide, Mid-2026)
25 kW
Residential On-Site Generation Limit
619 MW
Installed Solar Capacity (2022)
$5,000/year
Maximum Idaho Alternative Energy Tax Deduction

Why Solar Makes Sense in Idaho

Growing Solar Market

Solar is now an established part of Idaho’s energy mix. Idaho’s Office of Energy and Mineral Resources reports 619 MW of installed solar generation in the state, and utility-scale solar has expanded significantly since it first came online in 2016.

Strong Value for Daytime Self-Supply

In Idaho, solar works best when a system is designed to offset your own on-site electricity use during the day. That makes system sizing, household load timing, and realistic export assumptions especially important for homeowners.

State-Level Financing and Tax Benefits

Idaho homeowners can combine state-level financing tools with the Idaho alternative energy tax deduction to reduce upfront cost and improve long-term project economics.

Battery Backup Adds Resilience

Most standard grid-tied solar systems do not keep your home powered during an outage on their own. Homeowners who want backup power should plan for battery storage or another backup solution from the beginning.

Quick Solar Facts

Average Retail Electricity Price: 12.63 ¢/kWh
Residential System Limit: Up to 25 kW
Installed Solar Capacity: 619 MW
Idaho Tax Deduction: Up to $5,000/year
System Lifespan: 25-30 years

Quick Solar Savings Calculator

Important 2026 Updates

Idaho Power Export Credit Rates Remain in Effect Until the 2028 Filing

For Idaho Power on-site generation customers, excess exported energy is credited through net billing at the Export Credit Rate rather than a traditional 1:1 retail net metering structure. Idaho Power states that the current ECR will remain in place until the utility proposes updates as part of an April 1, 2028 filing, and later updates may occur annually after that.
Idaho Power Customer Generation

Idaho State Energy Loan Program Remains Available for Qualified Home Projects

Idaho’s Office of Energy and Mineral Resources continues to offer the State Energy Loan Program for single-family homes. The program provides low-interest financing for qualifying energy projects, including eligible renewable energy improvements, and can help homeowners spread out upfront project costs.
Idaho OEMR State Energy Loan Program

Idaho Solar Laws & Regulations

Customer Generation and Export Credits

Idaho does not operate under a single statewide retail-rate net metering structure for all homeowners. For Idaho Power customers, on-site solar is governed by customer generation tariffs, and exported electricity is compensated at the applicable Export Credit Rate under net billing rules.
Idaho Power Customer Generation

Idaho Residential Solar Disclosure Requirements

Idaho’s Residential Solar Energy System Disclosure Act requires solar retailers to provide written disclosures before a customer signs an agreement. These disclosures are intended to give homeowners clearer information about system cost, projected savings, warranties, and the possibility that future legislative or regulatory changes could affect the value of exported power.
Idaho Residential Solar Energy System Disclosure Act

Idaho Alternative Energy Tax Deduction

Idaho law allows an income tax deduction for qualifying residential alternative energy devices, including certain solar systems. The deduction is 40% of eligible cost in the year the system is placed in service, followed by 20% per year for the next three years, subject to a maximum deduction of $5,000 in any one tax year.
Idaho Code 63-3022C