Idaho Solar Incentives, Tax Credits & Rebates (2024 Guide)
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Idaho provides open skies and plenty of solar incentives for switching to solar energy. Our guide dives into the Gem State’s best renewable energy programs to help make transitioning a breeze. Learn about Idaho’s solar incentives below, and check out our guide on the best solar companies to help obtain these benefits.
What Are the Solar Tax Credits and Rebates in Idaho?
Several solar tax credits and incentives are available to Idahoans. Here is a summary of the information we gathered from our research.
Idaho State Energy Loan Program
The Idaho Governor’s Office of Energy and Mineral Resources (OEMR) offers low-interest loans for homeowners installing solar panel systems. These loans allow homeowners to borrow up to $30,000 for up to five years. Interest rates vary by the loan’s length. These interest rates include the following:
- 3% for 36 months
- 5% for 60 months
- 7% for 84 months
The loans are first come, first serve, and five are available per region each year. Check the OEMR site to see which are still available in your area.
More resources: DSIRE page
Idaho State Solar Tax Deduction
This initiative, also from the Idaho OEMR, allows eligible individuals to deduct some of the costs of installing solar panels from their Idaho state income taxes. Specifically, it offers an income tax deduction of up to 40% of the installation costs of solar energy systems. This program applies to other energy efficiency home improvements, such as wind and geothermal technology.
Harnessing this incentive enables Idaho residents to reduce their tax burden while contributing to a cleaner and more sustainable energy landscape.
More resources: DSIRE page
Solar Easement Laws
Idaho state legislation allows for solar easements. Solar easements are legally binding agreements that allow parties to voluntarily enter into a contract to ensure adequate sunlight exposure to a solar energy system.
An easement also allows legal action for you to make a homeowners association (HOA) or nearby neighbors not limit or prohibit the installation of solar panels within its jurisdiction. HOAs can enforce reasonable rules regarding the appearance of the panels, but they can’t deny you installing them. The provisions only apply to solar panels owned, controlled, and maintained by the homeowner.
More resources: DSIRE page
How Does the Federal Solar Tax Credit Work?
Every Idaho homeowner with a solar panel system should learn about the federal solar investment tax credit (ITC). This incentive allows you to receive a federal tax deduction equal to 30% of your solar panel installation cost. You can also claim the 30% credit for stand-alone solar panel batteries with a minimum of 3 kilowatt-hours (kWh) capacity.
The federal government applies this credit to your taxes the year of the installation. The deduction will roll over to the next tax year if your liability is less than the ITC. You don’t qualify for this credit if you lease your solar panels or have a power purchase agreement (PPA).
Is Net Metering Available in Idaho?
Net-metering allows you to return excess energy from your solar panels to the power grid. When solar panels produce more energy than you consume, the surplus electricity goes to the power grid, and you receive solar renewable energy credits (SRECs) in return. You can apply these credits to your next electricity bill to save money.
Idaho doesn’t have a statewide net-metering policy. However, the state’s three big energy companies—Avista Utilities, Idaho Power, and Rocky Mountain Power—have developed net-metering programs the Idaho Public Utilities Commission (PUC) has approved.
How Much Do Solar Panels Cost in Idaho?
The average cost of solar panels nationwide is around $17,640 for a 6-kilowatt (kW) standard-sized system without solar incentives. Based on recent data from EnergySage, solar panel installation in Idaho costs roughly $17,580, or $2.93 per watt. This pricing means you receive $5,274 from the federal solar credit, which makes most Idaho solar power systems cost around $12,206.
Your solar financing option determines your system’s overall cost-effectiveness and possible payback period. We explain each payment method below.
- Cash purchase: Paying for your system with cash means full ownership. This allows you to take advantage of all solar rebates, incentives, and the fastest payback period.
- Solar loan: Solar loans are a popular financing option for homeowners. You can borrow money to cover the up-front cost of the solar panel system and pay it back over time with fixed interest rates and monthly payments. This option also provides full system ownership to use any financial incentives.
- Solar lease: Another option is to lease solar panels. With a solar lease, a third party owns the system, and you pay a monthly fee to use the panels and benefit from the energy they generate. This option is often attractive for those who don’t want to deal with the up-front cost or maintenance of owning the system. However, you don’t own the system, so you can’t use any incentives.
- Power purchase agreement (PPA): A PPA is similar to a lease. You pay for the electricity generated by the solar panels at a predetermined rate instead of paying a fixed monthly fee. This option allows you to benefit from solar energy without owning the system, but you don’t qualify for the ITC.
Is Going Solar in Idaho Worth It?
Going solar in Idaho is worth it. The state boasts abundant sunlight and a range of incentives, including tax credits, rebates, and favorable net-metering policies. These incentives significantly offset installation costs and expedite your solar investment’s payback period.
Idaho’s commitment to renewable energy aligns with national goals, ensuring a stable and supportive solar landscape for years. The blend of financial advantages, environmental impact, and policy support makes going solar in Idaho a truly rewarding endeavor.
Our Conclusion
Based on our research, Idaho homeowners benefit greatly from going solar. The Gem State offers a worthy selection of solar financial incentives and legislation to help make solar energy system installation more accessible and affordable. This guide covers the most significant incentive programs, but smaller city- or municipality-specific incentives may be worth exploring. We recommend checking the Database of State Incentives for Renewables and Efficiency (DSIRE) for more information.
Use our tool below to connect with top solar installation companies. You should also read our guide on the best solar companies in Idaho to find a local installer that matches your needs and can help you obtain the incentives listed here.
FAQ About Solar Tax Incentives in Idaho
Does Idaho allow net-metering?
Yes, Idaho’s three biggest utility companies offer net-metering and on-site generation tariffs to allow you to connect solar energy systems to the power grid and earn credits.
Can I pocket my solar tax credit?
No, the federal incentive doesn’t come as cash in your pocket. It’ll reduce the money you pay in federal taxes.
Do solar panels need maintenance?
Solar panels need minimal maintenance. Annual cleaning and checking for obstructions ensures efficiency.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.
