Idaho solar panels: The complete guide in 2025
Data updated Dec 2, 2025
Ready to go solar in Idaho? To offset the average typical electric bill, you’ll need a 12.63 kW system, which costs about $25,624 after the federal tax credit.
Cost for an average system in Idaho
| Cash price | $36,606 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $17,992 | 15 Years | 94% |
Some states, towns, and utility companies offer incentives that can help lower the cost of solar.
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- Overview
- Solar cost
- Incentives
- Companies
Going solar in Idaho
Despite the long winters, Idaho’s sunny skies, consumer-friendly incentives, and net metering programs make it a natural fit for solar panels.
Factor in the federal solar tax credit, and Idahoans can cut the cost of solar by thousands of dollars, speeding up your payback period and increasing the value of your solar investment.
Here's our guide to going solar in Idaho.
Cost
How much do solar panels cost in Idaho?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Idaho homeowner needs a 12.63 kW solar panel system to cover their electricity needs, which comes out to $36,606 before incentives. Prices range from $31,115 to $42,097, but after the federal tax credit, that drops by 30%. However, the federal tax credit is now set to expire after 2025, following recent legislative changes. If you're considering solar, starting the process now could save you $10,982.
While this may sound high, it will pay off in Idaho. That's why over 3,900 Idaho homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 15.44 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it upfront. This provides the best long-term savings.
Solar loan: Allows you to retain ownership of your system, while owing little to no money upfront. Solar loans aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options – private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These generally provide the lowest savings, but can make sense in some situations. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.
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Incentives
What are the best solar rebates and incentives in Idaho?
Incentives help bring solar's price tag down considerably in Idaho. Here are the major ones to know about:
| Incentive | Average savings in Idaho | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $10,982 | Lowers your solar panel system's cost by 30%, but expires on January 1, 2026. |
Idaho Residential Alternative Energy Tax Deduction | Varies depending on your income and tax bracket | Allows you to deduct 40% of the cost of your system from your taxable income for one year—and then 20% for the next 3 years for a maximum deduction of $5,000 per year (total maximum deduction of $20,000). |
Idaho State Energy Loan Program | Varies depending on how you finance your system | Provides 3- to 7-year low-interest solar loans for home energy upgrades including solar panels up to $30,000 |
Is net metering available in Idaho?
In certain states, net metering policies allow you to earn credits for the extra energy your home solar system produces. This incentive is known as net metering—basically a solar buyback program—and it can make it so you owe little to nothing on your electric bills.
Idaho has some great net metering programs, but your rates and eligibility depend on your utility company. Avista and Rocky Mountain Power customers can take advantage of really favorable bill credit rates, whereas Idaho Power’s net billing program reduces compensation by about 32%.
Learn more about net metering in Idaho or see program details below:
Equipment
Equipment quality
The more efficient a solar panel is, the more power per square foot. As of 2025, the most popular solar panels have a rated output of 450 watts. To get the most out of your solar energy system, choose panels with at least that much power output.
Your solar inverter setup is also important consideration—make sure it suits your roof’s layout.
And if you’re interested in a solar battery, it’s best to choose one that integrates with that inverter.
The best equipment tends to be more expensive, but it will often save you more money in the end. Premium equipment often has the best warranty terms, guaranteeing 25-40 years of coverage for repairs, replacements, and the lowest degradation rates (meaning they’ll maintain more of their power output for longer).
Companies
Who are the best solar installers in Idaho?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Idaho:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Idaho
- Idaho Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Idaho Office of Energy and Mineral Resources
Learn about ID solar programs from the state government.
- ID Public Utilities Commission
Read more about how utility companies work in ID.
- Idaho Electricity Profile (EIA)
Learn about ID energy production and prices.
- ID State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in ID.
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