Is Solar Worth It in Idaho in 2026?
Idaho gets more sun than most people expect — Boise sees roughly 210 clear-ish days a year at 43.9°N, a latitude that still lets panels produce well most of the year. A well-sited system here can generate around 1,443 kWh per installed kilowatt per year, a solid number nationally.
But Idaho has two things working against solar math that sun-belt states don't: cheap electricity and a utility that just cut what it pays for exported power. At 11.8¢ per kWh, Idaho ranks among the lowest electricity prices in the country, so every kWh your panels make saves you less than it would elsewhere. The 30 percent federal tax credit also ended for systems completed after December 31, 2025. Add Idaho Power's move away from full-retail net metering, and payback in 2026 commonly runs 14 to 20-plus years in its territory — genuinely longer than most states this guide covers. Solar can still make sense for high-usage homes, cash buyers who don't need a fast payback, or homes on Avista's more traditional tariff. It's a real decision, not an easy one, and this page gives you Idaho's actual numbers.
Idaho Electricity Prices Are Low, But Climbing
Solar is a bet on future electricity prices: every kilowatt-hour your roof makes is one you don't buy from the utility. Idaho's rate is genuinely cheap by national standards, but it hasn't stood still.
Full Idaho electricity price data (1990–2025)
| Year | Idaho (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 4.9 | 7.8 |
| 1991 | 4.9 | 8.0 |
| 1992 | 4.9 | 8.2 |
| 1993 | 5.0 | 8.3 |
| 1994 | 5.1 | 8.4 |
| 1995 | 5.3 | 8.4 |
| 1996 | 5.3 | 8.4 |
| 1997 | 5.2 | 8.4 |
| 1998 | 5.3 | 8.3 |
| 1999 | 5.3 | 8.2 |
| 2000 | 5.4 | 8.2 |
| 2001 | 6.0 | 8.6 |
| 2002 | 6.6 | 8.4 |
| 2003 | 6.2 | 8.7 |
| 2004 | 6.1 | 9.0 |
| 2005 | 6.3 | 9.5 |
| 2006 | 6.2 | 10.4 |
| 2007 | 6.4 | 10.7 |
| 2008 | 7.0 | 11.3 |
| 2009 | 7.8 | 11.5 |
| 2010 | 8.0 | 11.5 |
| 2011 | 7.9 | 11.7 |
| 2012 | 8.7 | 11.9 |
| 2013 | 9.3 | 12.1 |
| 2014 | 9.7 | 12.5 |
| 2015 | 9.9 | 12.7 |
| 2016 | 10.0 | 12.6 |
| 2017 | 10.0 | 12.9 |
| 2018 | 10.2 | 12.9 |
| 2019 | 9.9 | 13.0 |
| 2020 | 10.0 | 13.2 |
| 2021 | 10.2 | 13.7 |
| 2022 | 10.4 | 15.0 |
| 2023 | 11.1 | 16.0 |
| 2024 | 11.5 | 16.5 |
| 2025 * | 11.8 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Idaho residential rates have climbed roughly 88 percent since 2005, per EIA data, at a last-decade pace of about 1.8 percent a year — real, sustained growth from a low starting point. Idaho electricity shouldn't be assumed to stay cheap forever, but this also isn't a state where a rate shock alone will make solar pay for itself quickly. The historically hydro-and-wind generation mix has kept prices down; Boise-metro growth and rising demand are the pressures pushing the other way.
The Idaho Sun, Month by Month
Panels respond to how high the sun climbs and how long it stays up, not to air temperature. At 43.9°N, Idaho's sun angle is noticeably lower in winter than a Sun Belt state's, which widens the gap between summer and winter production.
Idaho monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 77 |
| Feb | 93 |
| Mar | 121 |
| Apr | 139 |
| May | 147 |
| Jun | 145 |
| Jul | 154 |
| Aug | 154 |
| Sep | 140 |
| Oct | 122 |
| Nov | 83 |
| Dec | 68 |
| Year | 1443 |
Source: NREL PVWatts typical-year estimate (Boise), per installed kW at latitude tilt.
Idaho's late-spring and summer months carry most of the year's production; winter months, especially in the fog-prone Snake River Plain, are meaningfully weaker. If your usage spikes with summer AC or well pumps, that lines up well with peak production. If your biggest cost is winter heating, solar covers less of that load here than a south-facing roof in a milder-winter state would suggest.
What Solar Costs in Idaho in 2026
Idaho installs run about $2.85 to $3.40 per watt, with meaningful variation by metro — Boise tends to run higher (around $3.38/W), Idaho Falls lower (around $3.00/W). With the federal credit gone, the number you negotiate is close to what you'll actually pay, aside from Idaho's state tax deduction (more below).
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $14,250 to $17,000 | ~7,200 kWh/yr (~$71/mo at 11.8¢) | Smaller home, lower usage |
| 8 kW | $22,800 to $27,200 | ~11,500 kWh/yr (~$113/mo) | Average Idaho home |
| 12.8 kW | $36,500 to $43,500 | ~18,500 kWh/yr (~$182/mo) | Large home, well pump or heat pump load |
Idaho charges the standard 6 percent state sales tax on solar equipment — there's no exemption here, unlike some sun-belt states. Always compare price per watt across at least three quotes, since regional cost swings inside Idaho are larger than in most states.
Estimate Your Idaho Payback
The calculator below is set to Idaho's average electricity rate and typical Boise-area sun production. Enter your own monthly bill to see your estimated system size, payback period, and 25-year savings. Idaho's rate growth has averaged about 1.8 percent a year over the last decade — a reasonable starting point for the inflation field, though you can drag it to test other scenarios.
Idaho Solar Incentives That Still Exist in 2026
Let's separate what's gone from what's still standing.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit ended for installations completed after December 31, 2025, with no phase-out. If an installer's pitch still assumes it, that's a sign their numbers are stale.
- Still here — the state income-tax deduction: Under Idaho Code 63-3022C, homeowners can deduct 40 percent of the installed cost in year one, then 20 percent a year for three more years — capped at $5,000 per tax year and $20,000 over the life of the system. It's a deduction against taxable income, not a dollar-for-dollar credit, so its value depends on your bracket. Any unused balance transfers to a buyer if you sell the home.
- Still here — a low-interest state loan: The Idaho Governor's Office of Energy and Mineral Resources offers an energy loan, up to roughly $30,000 over up to 5 years, that can help finance an install alongside the tax deduction.
- No sales tax exemption: Unlike states such as Florida, Idaho charges its standard 6 percent sales tax on solar equipment. Factor that into your quote.
- Property tax: Idaho Code 63-602JJ exempts qualifying renewable-energy property from standard ad valorem property tax. For a typical rooftop system, installers cite this as meaning solar doesn't trigger a reassessment or a tax increase.
- Partially — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit through 2027, but it belongs to the leasing company. Compare any lease offer against a cash or loan purchase before assuming it's automatically the better deal.
Idaho Power's New Net Billing
Net metering used to mean your meter ran backward and you got paid the full retail rate for every kWh you exported. That's gone for new systems at Idaho Power — the state's largest utility, serving Boise, the Treasure Valley, and most of southern Idaho.
After an April 2025 rate case, the Idaho Public Utilities Commission approved a roughly 31 percent cut to export compensation in a September 2025 final order. New residential (Schedule 6) customers now export under "net billing": credits vary by time and season — about 14.06¢/kWh on summer on-peak hours, down to 1.77¢/kWh summer off-peak, and just 0.95¢/kWh in the non-summer months. These rates hold through May 31, 2026, and the commission paused further adjustments, pushing the next reset to 2028. Net exported energy is still banked and credited monthly — just at rates far below what you pay to buy power back.
Two wrinkles matter. Rocky Mountain Power, serving eastern Idaho, runs its own separate net-billing program with different rates (see its Idaho price summary, effective June 2026). Avista, covering the Panhandle around Coeur d'Alene, still runs a more traditional net-metering tariff — so "the current program" genuinely depends on which utility serves your address.
The Boise Resale Angle Nobody Mentions
Idaho's old, far more valuable net-metering deal didn't disappear for everyone — it's grandfathered by property, not by person. Any Idaho Power system installed before December 20, 2019 (or under binding contract by December 20, 2020) keeps full 1:1 net metering through December 20, 2045, and Idaho regulators ruled in early 2020 that the rate transfers automatically to a new owner when the home sells.
That makes existing solar a genuine diligence item if you're buying in Boise or the Treasure Valley. A pre-2020 system conveys a legacy export rate worth many times today's net billing credit, and such homes can carry a real resale premium. One catch: adding a second, new system to that same property does not extend the legacy rate to the new panels — the addition gets metered under current net billing terms.
How to Go Solar in Idaho
Work through these steps in order before you commit.
- Pull your last 12 power bills and find your average monthly cost — at 11.8¢/kWh, the case for solar depends heavily on how much power you actually use.
- Confirm which utility serves your address and ask specifically what its current net-billing or net-metering export rates are — Idaho Power, Rocky Mountain Power, and Avista all differ.
- Check that your roof faces south, east, or west with minimal shading, and has at least 10 to 15 years of life left in the shingles.
- Get at least three quotes and compare price per watt, equipment, and warranties — confirm every quote reflects 2026 reality with no phantom federal credit.
- Ask your installer or accountant how to claim the Idaho Code 63-3022C deduction across the four tax years it spans, and whether the state energy office loan makes sense for your financing.
- Run the payback calculator on this page against your specific export rate, not a generic full-retail assumption, before you sign anything.
For the full picture of how panels work, sizing, and buying versus leasing, read our main solar panels guide — this page focuses on what's specific to Idaho. If your roof needs attention before an install, see our roofing guide, and for wiring and inverters, see our electrical guide.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 values preliminary). Production estimates: NREL PVWatts. Net billing order: DSIRE — Idaho Power Net Metering, PV Magazine USA, and Rocky Mountain Power. State tax deduction: Idaho Code 63-3022C and the Idaho Governor's Office of Energy and Mineral Resources. Property tax: Idaho Code 63-602JJ. Grandfathering: PV Magazine USA. We review these figures every six months.