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Is Solar Worth It in Idaho in 2026?

Complete analysis of solar costs, incentives, net metering, and payback for Idaho homeowners — without the federal ITC.

Cost Per Watt

$2.90

installed

Electricity Rate

$0.180

per kWh

Payback (No ITC)

14 yr

current reality

Payback (With 30% ITC)

9.8 yr

hypothetical

25-Year ROI

79%

return on investment

Incentive Breakdown — Idaho

Available incentives for a typical 7kW residential solar system in Idaho

Federal ITC (25D)

Expired

The federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.

State Tax Credit

None

Idaho does not offer a state tax credit for solar installations.

SREC Market

Not Available

Idaho does not have a traditional SREC market.

Property Tax Exemption

No statewide property tax exemption for solar

Sales Tax Exemption

No statewide sales tax exemption for solar

Key Incentives: No major state-level incentives currently available.

Solar Math — With vs Without Federal ITC

Cost breakdown for a typical 7kW residential system in Idaho

2026 Reality (No Federal ITC)

System Size
7 kW
Cost per Watt
$2.90/W
Gross Cost
$20,300
Federal ITC
$0
Net Cost
$20,300
Annual Savings
$1,452/yr
Payback Period
14 years

Hypothetical (With 30% ITC)

System Size
7 kW
Cost per Watt
$2.90/W
Gross Cost
$20,300
Federal ITC (30%)
-$6,090
Net Cost
$14,210
Annual Savings
$1,452/yr
Payback Period
9.8 years

Impact: Without the federal ITC, Idaho homeowners face a 4.2-year longer payback period — paying $6,090 more out of pocket.

Net Metering Policy — Idaho

How Idaho compensates your excess solar production

NEM 1.0 Full Retail Net Metering

Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.

Idaho mandates net metering at full retail rate under PUC rules.

Cost Per Watt Benchmark — Idaho

Idaho Average

$2.90/W

National Average

$3.05/W

Typical 7kW System

$20,300

$2.00/W $3.50/W $5.00/W

Idaho's average installed cost is below the national average of $3.05/W

Breakeven Timeline

Without the federal ITC, a typical 7kW system in Idaho breaks even in 14.0 years. With the former 30% ITC, payback would drop to 9.8 years.

Without Federal ITC

14

years to break even

With Former 30% ITC

9.8

years to break even

Production Details

Peak Sun Hours4.1 hrs/day
Production1152 kWh/kW/yr
Annual Production$8,066 kWh
Annual Savings$1,452

Ready to Go Solar in Idaho?

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