Low electricity rates, but excellent sun hours — Idaho is a solar sleeper.
| ☀️ Peak Sun Hours | 4.8 hrs/day (excellent — among the best in the U.S.) |
| ⚡ Avg Electricity Rate | $0.112/kWh (EIA 2025 — 24% below U.S. average) |
| 🏠 Typical 6 kW System Cost | $16,800 after 30% Federal Tax Credit (ITC) |
| 📈 Payback Period | 9 years (industry estimate for average ID home) |
| 🔌 Net Metering | ✅ Available — full retail rate credit (Idaho Power net metering) |
| 💰 25-Year Total Savings | $42,000+ (estimate based on 4% annual electricity inflation) |
Idaho has some of the lowest electricity rates in the country — which might make you think solar isn't worth it. But here's the real story:
Idaho gets 4.8 peak sun hours per day on average (NREL data), which is among the best in the U.S. This means a 6 kW system in Boise produces about 8,500 kWh/year — 18% more than the national average. Even with low electricity rates, the high production makes solar economical.
Idaho Power (serving Boise, Mero, and southern ID) offers net metering with full retail rate credit for excess electricity sent to the grid. This makes solar economics much better than in states with "avoided cost" compensation.
Rocky Mountain Power (serving northern ID) also offers net metering, though with slightly different terms.
Idaho's solar system costs are among the lowest in the country, thanks to:
The 30% Federal Investment Tax Credit (ITC) applies to Idaho solar installations through 2032. For a $24,000 system (before incentives), that's $7,200 back as a tax credit.
While Idaho's rates are low today, they're rising at 3-4% per year (EIA projection). Going solar locks in your electricity cost at today's rate for 25+ years. This "rate hedge" is a major benefit even in low-rate states.
Idaho Power offers net metering for systems up to 100% of annual electricity usage. Key details:
Rocky Mountain Power (part of PacifiCorp) serves northern Idaho. Their net metering policy:
30% of total system cost (through 2032). Applies to equipment, installation, and permitting fees. The credit is non-refundable but can be carried forward to future tax years.
System size: 6 kW (18 × 350W panels)
Roof direction: South-facing, 42° tilt (optimal for ID latitude)
Electricity rate: $0.112/kWh (Idaho Power)
Annual production: ~8,500 kWh (NREL PVWatts estimate for Boise, ID)
| Item | Amount |
|---|---|
| Annual solar production | 8,500 kWh |
| Value at retail rate ($0.112/kWh) | $952 |
| Minus estimated degradation (Year 1 = 100%) | -$43 (0.5%/year) |
| Net annual savings (Year 1) | $909 |
Monthly savings: ~$76 | Yearly: $909
With electricity inflation at 4%/year and panel degradation at 0.5%/year:
Note: These are estimates. Actual savings depend on your specific electricity usage, roof orientation, shading, and future electricity rate changes.
Yes — and better than you might think. Here's the data:
| Month | Production (kWh) | % of June Production |
|---|---|---|
| January | 480 | 32% |
| February | 620 | 41% |
| March | 890 | 59% |
| June | 1,520 | 100% |
| December | 420 | 28% |
Key takeaway: Idaho's high sun hours (even in winter) and excellent summer production make solar a strong investment despite low electricity rates. A properly sized system can still achieve net-zero annual electricity bills.
Installing solar in Idaho typically takes 4–8 weeks from contract signing to system activation. Here's the typical process:
A solar installer visits your home to assess roof condition, orientation, shading, and electrical panel capacity. They design a system sized to your electricity usage and roof space.
The installer handles city/county building permits and utility interconnection agreements. Idaho has relatively straightforward permitting compared to some states.
Actual installation typically takes 1–3 days for a typical residential system. The installer mounts panels, installs inverter and racking, and connects to your electrical panel.
After installation, a city/county inspector verifies the system meets code. Then your utility installs a net meter and grants permission to operate (PTO).
Yes. Both Idaho Power and Rocky Mountain Power offer net metering. You receive full retail rate credit for excess electricity sent to the grid, which can be used to offset electricity consumed at night or during winter months.
A typical 6 kW solar system in Idaho saves about $76/month, or $909/year. Over 25 years, total savings exceed $42,000 (assuming 4% electricity inflation and 0.5% annual panel degradation). Your actual savings depend on your electricity usage, roof direction, and local rate.
South-facing roofs capture the most annual sunlight in Idaho. Southeast/southwest-facing roofs capture about 92-95% of south-facing production. East/west-facing roofs capture about 80-85%. North-facing roofs are not recommended for solar in Idaho due to low winter sun angles.
Not necessarily. With net metering, you can use the grid as a "virtual battery" — sending excess summer production to the grid and drawing it back in winter. However, battery storage is valuable if you want backup power during outages (which can happen in Idaho winter storms).
Three reasons: (1) Excellent sun hours (4.8 hrs/day) mean high production. (2) Low system costs in Idaho make payback periods short (8-10 years). (3) Electricity rates are rising at 3-4%/year — solar locks in your cost at today's rate for 25+ years.
Our solar calculator gives you a personalized estimate based on your location, electricity usage, and Idaho's solar conditions. Takes 30 seconds, no email required.
Calculate My Solar Savings →Electricity rates: U.S. Energy Information Administration (EIA), Idaho Electricity Profile 2025.
Solar production estimates: NREL PVWatts Calculator, using Boise, ID weather data.
Net metering policies: Idaho Public Utilities Commission (PUC) net metering rules.
Federal tax credit: IRS Form 5695 instructions (2026 revision).
Disclaimer: These are estimates for planning purposes. Actual savings vary based on your specific home, utility, and installation costs. Consult a licensed solar installer for a precise quote.
The average cost of a residential solar system in Idaho is $15,000-$25,000 before incentives (for a 6-10 kW system). After the 30% federal Investment Tax Credit (ITC), the net cost drops to roughly $10,500-$17,500. Actual costs vary based on roof complexity, panel brand, installer choice, and local permitting fees. Idaho homeowners should get at least 3 quotes to compare pricing.
All U.S. homeowners qualify for the 30% federal Investment Tax Credit (ITC) through 2032. This credit reduces your federal taxes by 30% of your total system cost. In addition to the federal ITC, some states offer additional rebates, property tax exemptions, or sales tax exemptions on solar equipment. Check with your local utility and the Database of State Incentives for Renewables & Efficiency (DSIRE) for Idaho-specific programs.
The typical solar payback period in Idaho ranges from 7 to 12 years, depending on your electricity rate, system size, available incentives, and financing terms. After the payback period, your solar panels essentially produce free electricity for the remaining 15+ years of their 25-30 year lifespan. Higher electricity rates and strong sun exposure lead to faster payback periods.
Yes. According to a study by Lawrence Berkeley National Laboratory (LBNL), homes with solar systems sell for an average of $15,000-$25,000 more than comparable homes without solar. The exact premium depends on your location, system size, and age. Many states including Idaho offer property tax exemptions for the added value from solar, so you won't pay higher taxes even though your home is worth more.
Solar works best on south-facing roofs with minimal shading, but east-west orientations can still produce 80-90% of optimal output. Key factors include: roof condition (should have 15+ years of life left), tilt angle (30-45 degrees ideal), and shading from trees or nearby buildings. A reputable installer will perform a free site assessment using satellite imagery to estimate your production potential before you commit to anything.