Idaho has one statewide solar incentive. You can subtract part of what the system cost from the income that Idaho taxes. There is no state rebate. The rest depends on the name on your electric bill. Your utility sets what it pays for the solar power you send to the grid. Open your utility below to see your own numbers.
Recently changed: Rocky Mountain Power cut its battery payment on July 1, 2026 and moved to new export prices on December 1, 2025. Idaho Power’s current rate sheets took effect on January 1, 2026. Older quotes may still show the earlier numbers.
What can an Idaho solar home get in 2026?
Four things are open now. Two of them depend on your utility.
| Incentive | What you get | Where it comes from | Who can get it | Status today |
|---|---|---|---|---|
| Idaho income tax deduction | Deduct 40% of the cost in year one, then 20% a year for three years. At most $5,000 a year. | The state, on your Idaho income tax return | Idaho taxpayers who install solar on their Idaho home | In law. No end date. |
| Credits for power you send to the grid | Dollar credits at Idaho Power and Rocky Mountain Power. kWh credits at Avista and Kootenai Electric. | Your utility, on your electric bill | Homes with a system the utility has approved | Open. Avista customers should confirm first. |
| Wattsmart Battery payment | $1,000 or $2,000 once, plus a yearly bill credit of $15 per kW | Rocky Mountain Power | Its customers who add a new battery to solar | Open. Amounts changed on July 1, 2026. |
| State Energy Loan | A loan of up to $40,000. You repay it with interest. | The state energy office, through a partner lender | Single-family home owners who pass a credit check | Taking applications when last checked. Ends December 31, 2026, or sooner if the money runs out. |
The federal tax credit for home solar is not in this table. It ended for systems switched on after December 31, 2025.
Which utility sends your Idaho electric bill?
The name is at the top of your bill. Open it to see only your own rules.
Idaho PowerBoise and much of southern Idaho.Dollar credits. Highest on summer evenings.
What you can get with Idaho Power
- Summer evenings15.6836 cents per kWh
For power you send to the grid from 3 p.m. to 11 p.m., Monday through Saturday, June 1 to September 30, except holidays. Example: 100 kWh sent out in those hours earn $15.68.
- All other summer hours3.3920 cents per kWh
Mornings, midday, Sundays and holidays. Example: 100 kWh earn $3.39.
- The rest of the year2.9019 cents per kWh
Every hour from October 1 to May 31. Example: 100 kWh earn $2.90.
- Battery paymentNone
Idaho Power lists no payment for home batteries. Home systems can be up to 25 kW, and a battery does not count toward that.
Your bill credits
Idaho Power uses net billing: you pay the normal price for the power you take from the grid, and the power you send out is credited in dollars at the prices above. This has applied to new systems since January 1, 2024.
Compare that with what you pay: 12.1195 cents per kWh in summer and 9.9332 cents per kWh the rest of the year for the first 800 kWh a month, before other bill adjustments. So outside summer evenings, solar power you use at home is worth much more than power you send out.
Credits carry forward and do not expire. Idaho Power says these prices stay until it proposes new ones in a filing due April 1, 2028. After that they may change every year.
Watch out: A quote that values all your extra power at one price is wrong for Idaho Power. The high price starts in mid-afternoon, after the hours when panels usually make the most power. Ask the installer to show your exports by season and by hour.
Also for you: the tax deduction, the state loan and homes that already have panels.
Rocky Mountain PowerParts of eastern Idaho.Dollar credits by season, plus a battery payment.
What you can get with Rocky Mountain Power
- Export credit, June through October14.666 cents per kWh on-peak
On-peak means the busy hours, here 3 p.m. to 11 p.m.. All other hours earn 3.664 cents per kWh. Example: 100 kWh sent out on-peak earn $14.67.
- Export credit, November through May5.597 cents per kWh on-peak
On-peak hours are 6 a.m. to 9 a.m. and 6 p.m. to 11 p.m.. All other hours earn 1.228 cents per kWh. Example: 100 kWh sent out off-peak earn $1.23.
- Wattsmart Battery payment$1,000 or $2,000
Paid once per household when you add a new qualifying battery to solar. Batteries under 10 kW get $1,000. Batteries over 10 kW get $2,000. For a battery, kW is the power it can give at one moment. The payment may be limited to 70% of the battery equipment cost.
- Yearly battery bill credit$15 per kW
From the second year, up to $100 a year, during a term of four years. Example: a 5 kW battery earns $75 a year. After the term it is $50 per kW, up to $250 a year.
Your bill credits
Rocky Mountain Power uses net billing: you pay the normal price for grid power, and every kWh you send out earns a dollar credit at the prices above. Unused credits carry over to the next bill.
These prices took effect on December 1, 2025 and change through cases at the state regulator. Ask Rocky Mountain Power for the current Schedule 136 sheet before you sign. You must own the system, and it can be no larger than 25 kW.
Watch out: The battery payment was $400 per kW before July 1, 2026, so an older quote can overstate it. If you leave the program early, you repay part of the payment.
Also for you: the tax deduction, the state loan and homes that already have panels.
AvistaNorthern Idaho.kWh credits. Confirm that new systems can still join.
What you can get with Avista
- Credit for extra powerkWh for kWh
Avista’s net metering rule credits your extra solar power as kWh on your next bills. Example: 100 extra kWh in July can cover 100 kWh you take from the grid in December.
- Yearly resetMarch 31
Credits still unused on March 31 each year go to Avista. You are not paid for them.
- Program limit in the rule1.52 MW
The rule offers net metering first come, first served until 1.52 MW is signed up. 1 MW is 1,000 kW.
Your bill credits
Net metering means the utility credits you for the solar power you send to the grid. Avista’s rule is Schedule 63 of its tariff, its official rule and price sheet. It covers systems up to 100 kW that you own.
The open question is the limit. Federal data already shows net-metered solar at Avista in Idaho at 5.426 MW in 2024, well above 1.52 MW. Avista seems to have kept signing up systems, but we found no Avista statement that says so.
Watch out: Before you sign, ask Avista in writing if Schedule 63 still takes new systems. A summer surplus that you cannot use by March 31 is lost.
Also for you: the tax deduction, the state loan and homes that already have panels.
Kootenai Electric CooperativeCo-op members in northern Idaho.kWh credits that do not expire, with extra charges.
What you can get with Kootenai Electric Cooperative
- Credit for extra powerkWh for kWh
Each extra kWh you send out becomes a kWh credit. Banked credits do not expire in Idaho.
- Monthly service charge$32.50
Charged every month at a home with net metering, the co-op’s program for crediting the solar power you send out.
- Loss charge on exported power$0.00971 per kWh
Example: 100 kWh sent out cost $0.97. On the co-op’s other net metering rate, it trims your banked kWh each April instead.
Your bill credits
Every April the co-op adjusts your banked credits for the change in its own cost of energy. It does not pay out credits. If you move out, they stay with the home. The co-op lists no solar or battery rebate.
Also for you: the tax deduction, the state loan and homes that already have panels.
Served by another co-op or a city utility such as Idaho Falls Power? The state regulator does not set their solar rules, so each one has its own terms. Ask yours for its policy and its credit price in writing.
Get quotes for your Idaho utility
Your ZIP code starts a quote request with installers that serve your area. Ask them to show your exports by season and by hour.
- Your utility sets the valueIdaho Power, Rocky Mountain Power, Avista and the co-ops each credit solar in a different way.
- No cost, no pressureComparing quotes is free, and you are never obliged to sign.
- Your data is protectedWe only share your details with the installers you are matched with.
How does the Idaho solar tax deduction work?
Idaho gives a deduction, not a credit. A credit cuts the tax you owe. A deduction cuts the income that Idaho taxes. So the money you save is the deduction multiplied by your own Idaho tax rate.
The law is Idaho Code 63-3022C. In the year your system is switched on, you deduct 40% of what you paid for it. In each of the next three years, you deduct 20%. The deduction cannot be more than $5,000 in any one year. That makes the most you can deduct $20,000 over four years.
- Who can use it: an Idaho taxpayer who installs solar on a home they live in, in Idaho.
- How you claim it: on your Idaho income tax return, for the year the system is switched on and for each of the next three years.
- If you buy a home with solar: the buyer can use what is left of a deduction that the seller did not fully use.
- Batteries and leases: the law covers what you pay to build or buy a device that uses sun, wind or geothermal heat. It does not name batteries and does not address leases. Ask a tax preparer first.
Watch out: A quote that shows this deduction as a dollar saving has picked a tax rate for you. Ask which rate, and check it with your tax preparer.
Example: the deduction on a typical Idaho system
A typical Idaho system is 7.52 kW and costs about $23,237. 40% of that is $9,295. That is above the yearly limit, so the first-year deduction is $5,000.
In each of the next three years, 20% of the cost is $4,647. The total deduction is $18,942.
That is income Idaho does not tax. It is not $18,942 in your pocket.
Sales tax and property tax
Ask your installer whether the quote includes sales tax. Ask your county assessor how it values a home with solar.
Is the Idaho State Energy Loan open for solar?
It was taking applications when we checked. The Governor’s Office of Energy and Mineral Resources, the state energy office, lends up to $40,000 for solar and other home energy projects. You choose 3% interest for 3 years, 5% for 5 years or 7% for 7 years.
This is a loan, so it lowers the cost of borrowing, not the price of the system. Applications are taken first come, first served until the money runs out or December 31, 2026.
- Who can apply: Idaho residents who hold the deed to a single-family home, pass a credit check and use a registered or licensed contractor. There is no income limit.
- The order matters: the loan must be approved, closed and funded before installation begins.
- What it costs: a credit analysis fee of $100 that you do not get back. The loan is secured with real estate, and you close it in person.
Watch out: The end date is close. Ask the energy office how much money is left before you plan around this loan.
What if the Idaho home you are buying already has panels?
Older systems can be on better terms than any new one. The connection date decides it.
- Idaho Power: a system connected by December 20, 2019 is a legacy system. It keeps one-for-one kWh credits each month until December 2045. That status passes to the next owner of the home.
- How legacy status is lost: the system is offline for more than six months or is moved to another site.
- Rocky Mountain Power: its older net metering plan closed to new applicants on October 2, 2020. Customers already on it keep monthly kWh netting until October 2, 2045. Ask the utility if the plan passes to you as the new owner.
Watch out: Ask the seller for the utility’s own paperwork that shows the connection date. A description of it is not enough.
When an Idaho incentive will not reach you
- You are with Idaho Power and send most of your power out at midday. Those kWh earn 3.3920 cents per kWh in summer and 2.9019 cents per kWh the rest of the year, not the evening price.
- You are with Avista and plan to bank a big summer surplus. Unused credits go to Avista on March 31. Also confirm that the program still takes new systems.
- Your Rocky Mountain Power battery quote was written before July 1, 2026. It may show the old $400 per kW. The payment is now $1,000 or $2,000 per household.
- You expect the state deduction to arrive as cash. It lowers taxable income by at most $5,000 a year. What you save depends on your tax rate.
Idaho paperwork, step by step
- Before you sign: name your utility in the quote. Ask for your extra power to be valued at your utility’s own prices, by season and hour.You, with your installer.
- If you want the state loan: apply before any work starts. Send the energy office its Residential Project Application with Addendum F and your contractor’s bid.You.
- Before installation: the utility application. Your installer applies to the utility to connect the system. Idaho Power charges $100. Rocky Mountain Power charges $85.Your installer. You sign the agreement.
- After a battery is installed: the Wattsmart application. Rocky Mountain Power only. The installer applies online for you.Your installer.
- At tax time: claim the deduction. On your Idaho income tax return, in the first year and each of the next three years.You or your tax preparer.
Compare Idaho quotes that use your utility’s prices
Enter your ZIP code to request quotes from installers in your area. Ask each one which utility and which export prices its savings estimate uses.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- Free, no-obligation quotesRequest quotes from local installers. You decide if you go ahead.
- Questions first, details lastA few questions about your home first. Name, email and phone only at the end.
- Test each quoteUse the list above to check what each quote assumes about credits and the tax deduction.
More Idaho solar guides
Idaho solar incentive questions
Does Idaho Have a Solar Tax Credit?
No. Idaho has an income tax deduction, not a credit. You deduct 40% of the system cost in the first year and 20% in each of the next three years, up to $5,000 a year. The federal tax credit ended for systems switched on after December 31, 2025.
Does Idaho Have Net Metering?
It depends on your utility. Avista and Kootenai Electric credit extra solar power as kWh on later bills. For new systems, Idaho Power and Rocky Mountain Power pay a dollar credit per kWh instead, at prices that change by season and hour.
Does Idaho Have Solar Rebates?
There is no state rebate for solar panels. Rocky Mountain Power pays $1,000 or $2,000 when a customer adds a new qualifying battery to solar. Idaho Power lists no battery payment, and Kootenai Electric lists no solar or battery rebate.
Can an Idaho HOA Stop You From Installing Solar Panels?
No, not on a roof you own. Under Idaho Code 55-3208, a homeowner’s association cannot prohibit rooftop solar. It may choose the spot on the roof, as long as one facing south or within 45 degrees of south is allowed. Ground-mounted systems are not covered.
Sources (15)
- Idaho Legislature, Idaho Code 63-3022C, alternative energy device deduction (checked September 29, 2026): legislature.idaho.gov
- Idaho Governor’s Office of Energy and Mineral Resources, Incentives (checked September 29, 2026): oemr.idaho.gov
- Idaho Governor’s Office of Energy and Mineral Resources, State Energy Loan Program (checked September 29, 2026): oemr.idaho.gov
- Idaho Power, Schedule 6 tariff, effective January 1, 2026 (checked September 30, 2026): docs.idahopower.com
- Idaho Power, customer generation FAQ (checked September 30, 2026): idahopower.com
- Idaho Power, Customer Generation (checked September 30, 2026): idahopower.com
- Rocky Mountain Power, Idaho Schedule 136, Net Billing Service (checked September 29, 2026): rockymountainpower.net
- Rocky Mountain Power, Customer Generation (checked September 29, 2026): rockymountainpower.net
- Rocky Mountain Power, Wattsmart Battery change notice, Idaho and Wyoming (checked September 29, 2026): rockymountainpower.net
- Rocky Mountain Power, Wattsmart Battery Program (checked September 29, 2026): rockymountainpower.net
- Avista Utilities, Idaho tariff book with Schedule 63, Idaho PUC copy (checked September 30, 2026): puc.idaho.gov
- U.S. Energy Information Administration, Form EIA-861, 2024 data, net metering file (checked September 30, 2026): eia.gov
- Kootenai Electric Cooperative, Net Metering Program (checked September 29, 2026): kec.com
- Idaho Legislature, Idaho Code 55-3208, solar panels (checked September 29, 2026): legislature.idaho.gov
- IRS, Residential Clean Energy Credit (checked September 30, 2026): irs.gov
