Is solar worth it in Idaho in 2026?

How Idaho pays for your solar power

Net billing (exports credited below retail). Idaho Power pays new solar customers a time-based export credit of 2.9 to 15.7 cents/kWh, fixed until 2028, while imports are billed at retail; Idaho also allows a state income tax deduction for solar.

In the calculator, 40% of your solar output is used at home at the retail price and the rest is exported at about 33% of retail, so each solar kWh is worth 60% of the retail price on average. Change it if your utility pays more or less. Method

State or utility incentive	What it is worth
Idaho income tax deduction for alternative energy devices	Deduct 40% of cost in year one and 20% a year for 3 more years, capped at $5,000 of deduction per year

How exports are credited

Idaho Power, the utility for most of southern Idaho, bills residential solar customers under Schedule 6 using net billing. Idaho Power describes it this way: you pay the retail rate for all energy you take from the grid, and you are paid for energy you send back at a variable Export Credit Rate (ECR). Your solar output first serves your own load. Only the surplus is exported.

The Idaho Public Utilities Commission (PUC) sets the ECR. It varies by season and hour (Mountain Time), and the rates below took effect October 1, 2025:

• Summer (June 1 to September 30), on-peak (3 to 11 p.m., Monday through Saturday, except holidays): 15.6836 cents/kWh
• Summer off-peak (all other hours, including all of Sunday and holidays): 3.392 cents/kWh
• Non-summer (October 1 to May 31), all hours: 2.9019 cents/kWh

Netting happens on the bill. Every kWh you import and every kWh you export is given a dollar value, and the export credits offset your monthly charges. If credits exceed the bill, the excess carries forward to offset future monthly charges, per Idaho Power’s glossary.

In Order No. 36785 the PUC limited the drop in the avoided-energy value to 40%, suspended the annual ECR update, and ordered the rates held until Idaho Power files an update on April 1, 2028. Idaho Power confirms the current rates stay until then. Systems that were already on one-for-one net energy metering before the switch are “legacy” systems and keep that treatment; this page covers new applicants.

For comparison with the 12.96 cents/kWh EIA residential average, the order’s annual-average ECR of 4.2745 cents/kWh is about 33%. That average is not weighted by when solar exports, so your own result will differ. Co-ops and municipal utilities set their own terms.

State incentives in 2026

• Idaho income tax deduction: under Idaho Code 63-3022C, a taxpayer who installs an alternative energy device (including solar electric) at an Idaho residence may deduct 40% of the cost in the year it is placed in service and 20% in each of the next three years. The deduction cannot exceed $5,000 in any one tax year. It reduces taxable income, so the value depends on your tax bracket. The statute text shows no end date.

No statewide rebate or sales tax exemption for residential solar was confirmed. The federal residential credit ended for systems installed after December 31, 2025 (see what ended).

What it means for payback

The credit structure rewards use at home. Imported power costs the full retail rate, while most midday exports earn 2.9 to 3.4 cents/kWh. Size the system near your annual use and avoid building for export. Appliances, water heating and EV charging scheduled for sunny hours increase the share you use directly.

The summer 3 to 11 p.m. window pays 15.6836 cents/kWh. A battery can move midday production into that window. Whether that pays back depends on the battery price; see are solar batteries worth it. The rates are locked until the 2028 update, but the 2028 filing can change them. Read net metering vs net billing for why this structure produces smaller savings than one-for-one crediting.

Other rules worth knowing

Idaho Power’s on-site generation schedules cover residential and small general service systems up to 25 kW. Any modification, such as added panels, an inverter replacement or a battery, must go through the interconnection process with a new application. Meters and AC disconnects must be accessible to Idaho Power and cannot sit behind locked gates or inside structures. If a system is disabled, the customer must notify the utility, and accounts with disabled systems are removed from the on-site generation schedule after six months.

Idaho Power can be reached at cg@idahopower.com or 1-800-632-6605 for interconnection questions. This page does not cover Idaho HOA or solar-access law, so check your covenants before signing.

Berkeley Lab does not publish a Idaho median from enough systems, so the calculator starts from the U.S. median of $3.60/W. Put your own quote in.