Solar Panels in Idaho (ID)

Last updated: February 24, 2026

Everything you need to know about going solar in Idaho (ID) — costs, savings, incentives, and the best equipment for your climate.

Federal Residential Solar Tax Credit Repealed

The 30% residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit. Commercial projects retain the 30% ITC under Section 48/48E. Idaho state incentives remain available.

Sun Hours/Day

4.7 hrs

Good Solar Irradiance

8 kW System Cost

$25,200

$3.15/watt installed

Federal Residential ITC

Repealed

Section 25D (early 2026)

Annual Savings

$1,784

13,724 kWh/year

Payback Period

14.1 yrs

then free electricity for 15-20+ yrs

Solar Irradiance in Idaho (2026)

Idaho receives an average of 4.7 peak sun hours per day annually, equivalent to roughly 1716 kWh/m² per year of global horizontal irradiance (GHI). Summer peaks reach about 6.1 h/day, while winter lows drop to around 2.8 h/day.

This places Idaho in the good solar irradiance band compared with other US states. At 4.7 kWh/m²/day, each 1 kW of rooftop solar in Idaho generates approximately 1,338 kWh/year (assuming 78% system performance after inverter, soiling, and temperature losses), which makes an 8 kW system produce around 13,724 kWh per year.

Data source: NREL National Solar Radiation Database (NSRDB), 1998-2020 typical meteorological year averages. Idaho (ID) values reflect the statewide average; coastal, mountain, and desert microclimates can vary by ±15% from this figure.

Idaho Solar Incentives (2026)

Federal residential tax credit was repealed in early 2026. Idaho continues to offer the following state and utility-level programs:

Incentive Value Eligibility Deadline Source
Federal Section 25D ITC 0% (Repealed Q1 2026) N/A Was 12/31/2025 IRS
Residential Alternative Energy Tax Deduction Verify with state agency DSIRE
Net metering by utility Verify with state agency DSIRE
Sales tax exemption (limited) Verify with state agency DSIRE

⚠ Always verify state incentive deadlines, caps, and eligibility before signing a solar contract — programs change annually and many have annual funding caps that exhaust mid-year.

Major utility companies in Idaho

Check your utility's net metering policy, interconnection requirements, and rate structure before installing — rules vary significantly within Idaho:

  • Idaho Power
  • Avista Utilities
  • Rocky Mountain Power (PacifiCorp)

Each utility has different rate structures, net metering caps, and time-of-use schedules. Visit your utility's website for current solar interconnection requirements and queue times.

Net metering in Idaho

Status: Net metering 1:1 (Idaho Power phasing toward net billing)

Export rate: Full retail credit (under review)

System size cap: 25 kW residential

⚠ NEM rules can be amended by state public utility commissions and individual utilities — verify with your utility before committing. Caps and rates shown reflect the most common residential tariff as of 2026.

Solar Incentives in Idaho

Federal Residential ITC (Section 25D) -- Repealed

The 30% federal residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal may still claim the credit for that tax year. Commercial solar projects continue to receive the 30% ITC under Section 48/48E.

State Incentives Available

Idaho offers state-level solar incentives that remain available despite the federal ITC repeal. Check with your local utility and the DSIRE database for current programs.

Top 3 Recommended Solar Panels for Idaho

Idaho's 4.7 peak sun hours/day provides solid solar potential. These panels deliver the best performance:

Panel Wattage Efficiency Temp Coeff Warranty
LONGi Hi-MO 7 620W 620W 23% -0.28%/°C 12/30 yr
LONGi Hi-MO 7 590W 590W 22.8% -0.28%/°C 12/30 yr
Trina Solar Vertex N+ 600W 600W 22.8% -0.28%/°C 15/30 yr

Top 3 Recommended Batteries for Idaho

Pairing solar with battery storage provides backup power during outages and can optimize savings with time-of-use rates:

Battery Capacity Power Chemistry Warranty
HomeGrid Stack'd Series 38.4kWh 38.4 kWh 34.4 kW LFP (Lithium Iron Phosphate) 10 yr
HomeGrid Stack'd Series 28.8kWh 28.8 kWh 25.8 kW LFP (Lithium Iron Phosphate) 10 yr
BYD Battery-Box Premium HVM 22.1 22.08 kWh 22.08 kW LFP (Lithium Iron Phosphate) 10 yr

Frequently Asked Questions

How much do solar panels cost in Idaho in 2026?

The average cost of an 8 kW solar system in Idaho is approximately $25,200 ($3.15/watt installed). Note: The federal residential solar tax credit (Section 25D) was repealed in early 2026, so the full system cost applies unless state incentives are available. State-level incentives may reduce your out-of-pocket cost. Get 3-5 quotes from local installers for accurate pricing.

Is the federal solar tax credit available in Idaho?

The federal residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit for that tax year. Commercial solar projects continue to receive the 30% ITC under Section 48/48E. Idaho still offers state-level incentives that can reduce your solar costs. Consult a tax professional for the latest guidance.

Is solar a good investment in Idaho?

With 4.7 peak sun hours/day, Idaho has good solar potential. An 8 kW system costs approximately $25,200 and can pay for itself in about 14.1 years through electricity savings. After payback, you enjoy 15-20+ years of essentially free electricity.

How much can I save with solar in Idaho?

An 8 kW solar system in Idaho produces approximately 13,724 kWh/year, saving about $1,784 annually. The estimated payback period is 14.1 years. Over 25 years, total savings can reach $44,600.

Does Idaho have net metering?

Net metering policies vary by utility in Idaho. Most states offer some form of net metering or net billing that credits solar homeowners for excess electricity sent back to the grid. Contact your local utility or check the DSIRE database for current Idaho net metering policies.

What is the best solar panel for Idaho?

For Idaho with 4.7 sun hours/day, high-efficiency panels are the best choice to maximize energy production. Look for panels with efficiency ratings above 21%.

What is the payback period for solar in Idaho?

The estimated payback period for an 8 kW solar system in Idaho is 14.1 years. This is calculated as: system cost ($25,200) divided by annual savings ($1,784/year). After payback, solar generates essentially free electricity for 15-20+ more years. State incentives may shorten this further.

Do I need a battery for solar in Idaho?

A battery is not required for grid-tied solar in Idaho, but it provides backup power during outages and can increase savings with time-of-use rate optimization. Idaho's incentive programs may include battery storage rebates.

Does Idaho have solar incentives?

Yes, Idaho offers state-level solar incentives. These may include state tax credits, rebates, property tax exemptions, sales tax exemptions, or SRECs. The federal residential ITC (Section 25D) was repealed in early 2026. Check the DSIRE database for current programs.

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