The Complete Guide to Idaho Solar Incentives

What Are Idaho Solar Incentives?

Solar incentives in Idaho are a set of programs and policies aimed at promoting the adoption of solar energy systems in the state. These incentives provide financial benefits and incentives to homeowners and businesses that install solar panels. From property tax exemptions and net metering programs to sales tax exemptions and federal investment tax credits, Idaho offers a range of incentives to make solar installations more affordable and economically viable. Some solar programs in Idaho even you get your solar panels installed for free! Learn more. 

In the following list, we will explore the comprehensive set of solar incentives available in Idaho, empowering you to make an informed decision when considering solar energy for your home or business.

The Idaho Solar Tax Credit

The Idaho State Solar Tax Credit, or Residential Alternative Energy Tax Deduction, offers a unique approach to incentivize solar installations in the state. Instead of a traditional tax credit, Idaho provides a 100% tax deduction. This means that in the first year of going solar, you can deduct 40% of your installation cost from your state income, up to a maximum of $5,000. For the following three years, you can deduct 20% of the cost each year. This tax deduction provides financial benefits to individuals and businesses transitioning to solar energy in Idaho.

Federal Solar Investment Tax Credit (ITC)

The Federal Investment Tax Credit (ITC), also known as the Green Energy Tax Credit, is a nationwide incentive available in Idaho that encourages the installation of renewable energy systems, including solar. It allows residential and commercial property owners to claim a percentage of their solar installation costs as a tax credit. Currently set at 30%, the ITC can significantly reduce the upfront costs of going solar in Idaho, making it a financially attractive option. The ITC is a valuable incentive that helps promote the growth of solar energy and supports the state's renewable energy goals.

Solar Net Energy Metering (NEM)

Solar net metering in Idaho is a billing arrangement that allows solar system owners to receive credits for the excess electricity they generate and feed back into the grid. When a solar system produces more energy than is being consumed on-site, the surplus is sent to the grid, and the owner receives credits for the energy exported. These credits can be used to offset future electricity consumption when the solar system is not producing enough energy, such as during nighttime or cloudy periods.

Net metering enables homeowners and businesses to effectively reduce their electricity bills and maximize the financial benefits of their solar installations. It also encourages the growth of solar energy by making it more economically viable for Idaho residents.