Guide to Idaho Solar Incentives for Homeowners (2026)

Idaho Solar Rebates, Tax Benefits, Net Metering & SRECs for Homeowners

Idaho homeowners face growing concerns around rising electricity prices, long rural outages, and grid reliability as demand increases. Idaho’s mix of urban, suburban, and very rural communities — many located far from centralized infrastructure — has fostered a significant off-grid and hybrid-grid culture, making solar an attractive option for homeowners.

The average residential electricity rate in Idaho is approximately 11.5¢ per kWh, placing the state below the national average and on the lower end of U.S. residential rates. 

While utility costs are modest compared with many other states, Idaho’s rural areas frequently see higher effective costs due to long distribution lines, seasonal extremes, and maintenance challenges. For many homeowners, solar isn’t just about reducing bills — it’s about resilience, especially for properties off the main grid, and avoiding extended outages after winter storms or wildfire smoke events.

Although federal solar incentives are not available to homeowners in 2026, Idaho still offers net metering protections, local utility programs, and a permitting environment with fewer restrictions than many states, making residential solar both feasible and appealing — particularly for off-grid and hybrid setups.

Here's what homeowners need to know about Idaho solar incentives in 2026.

Idaho Solar Incentives for Homeowners

• Property tax exemptions: Certain local jurisdictions may exempt solar from property tax assessments
  
  

• Outright state rebates: Limited but occasionally available through local governments or pilot programs
  
  

• Sales tax structure: No statewide sales tax exemption, but local incentives may apply
  
  

Idaho does not operate a broad statewide solar rebate program, but local jurisdictions sometimes offer property tax exemptions or favorable assessments that reduce the long-term cost burden for homeowners. 

Because Idaho has no formal statewide sales tax exemption for solar, homeowners should check local city or county ordinances for any tax relief options. In many rural counties, solar installations are treated as property improvements that do not trigger significant assessment increases.

Utility-Specific Solar Incentives in Idaho

• Net metering availability: Mandated for qualifying utilities
  
  

• Utility tariffs: Vary by provider, especially for co-ops and municipal utilities
  
  

• Local rebate pilots: Occasionally offered through utility programs
  
  

Idaho Power Residential Solar Programs

Idaho Power offers residential net metering, allowing homeowners to receive bill credits for excess solar electricity exported to the grid. Interconnection standards and system size limits are established, and customers must register their systems before operating. Solar systems can be paired with storage to maximize self-consumption and reduce reliance on the grid during peak periods.

Rocky Mountain Power (PacifiCorp)

Rocky Mountain Power serves parts of eastern Idaho and provides net metering under its “Net Metering Service Schedule.” Excess kilowatt-hours are credited to customers’ bills at a defined rate. System sizing rules apply, and homeowners should confirm tariff specifics before installation.

Municipal Utilities and Co-ops

Smaller municipal utilities and cooperative electric associations across Idaho offer net metering or net billing arrangements, often with more favorable local terms. These providers sometimes encourage self-consumption and can be more flexible with interconnection timelines and sizing. Homeowners served by these utilities may find program terms more easily aligned with off-grid approaches.

Net Metering for Residential Solar in Idaho

• Credit method: Utility bill credits for exported solar generation
  
  

• Rollover: Typically credits roll over monthly or annually
  
  

• Design priority: Works well with batteries and hybrid systems
  
  

Idaho does not have a single, statewide net metering mandate, so how solar homeowners are credited for excess generation depends largely on their utility provider. 

Idaho Power, which serves much of southern Idaho, operates under a net billing–style framework rather than traditional full retail net metering. Under this structure, excess solar energy exported to the grid is credited at utility-determined rates that are generally lower than the full retail electricity price. Credits are applied to future bills, but the value of exported power is reduced compared to states with full net metering.

Other utilities and rural electric cooperatives across Idaho may offer their own versions of net metering, net billing, or avoided-cost compensation. These policies vary by service territory and can differ in how credits roll over, how systems are sized, and how exports are valued. 

Why Use Energy Storage in Idaho

• Resiliency in rural and remote areas: Long outages after storms call for backup power
  
  

• Off-grid and hybrid living: Storage enables extended independence from central grids
  
  

• Peak shaving advantage: Batteries reduce reliance on grid peaks
  
  

• Improved net metering value: Storage increases self-consumption
  
  

Backup Power in Rural Idaho

Battery storage paired with solar provides crucial backup power in Idaho’s rural and remote regions, where outages can last longer due to distance from transmission hubs. Batteries allow homes to maintain essential functions like heating support controls, refrigeration, communications, and water systems when the grid fails. Unlike fuel-based generators, storage systems operate without noise or fuel logistics. For many rural homeowners, storage is a resilience tool as much as a cost-savings measure.

Off-Grid and Hybrid Grid Applications

Idaho has a significant number of properties that are fully off the electrical grid, or that use a hybrid model (grid + solar + storage) to reduce power purchases while maintaining access to grid resiliency when needed. Solar-plus-storage systems can be designed to support these lifestyles, powering essential loads independently during outages and drawing from the grid when solar production is low. This flexibility provides independence without losing access to net metering when grid connection is beneficial.

Reducing Dependence on Peak Grid Pricing

Utility rate structures in Idaho can include peak or seasonal rate components. Batteries allow homeowners to store solar energy produced midday and use it during higher-cost evening hours, reducing overall reliance on grid power. Even in a lower-rate state like Idaho, this peak shaving improves the economic return on a solar system by reducing bill exposure at expensive times.

Enhancing Self-Consumption and Roof Production Value

Solar energy is often produced when homeowners are away or consume little electricity. Storage helps capture that excess production and apply it when load increases, improving self-consumption and maximizing the value of every kilowatt generated. Combined with net metering credits, optimized self-consumption leads to greater long-term savings.

Off-Grid and Hybrid Solar Living in Idaho

• Permitting: Idaho has historically had fewer permitting hurdles for residential solar than many states
  
  

• Local acceptance: Rural counties tend to be supportive of off-grid installations
  
  

• Design flexibility: Hybrid systems are common and well understood
  
  

Idaho’s permitting environment for residential solar is generally less restrictive than in many coastal states, particularly in rural counties where off-grid living is common. Off-grid and hybrid systems — where solar, batteries, and the grid work together based on homeowner preference — are widely practiced and understood by local contractors. This makes Idaho a strong state for homeowners looking to pair solar with storage for extended independence, even while maintaining a billing relationship with their utility.

SREC and Production-Based Incentives in Idaho

• Statewide SREC market: Not available
  
  

• Primary value drivers: Net metering credits and storage gains
  
  

• Utility focus: Local programs matter more than statewide incentives
  
  

Idaho does not operate a statewide Solar Renewable Energy Credit (SREC) market. Residential solar value is realized through reduced energy purchases, net metering credits where available, and enhanced usage delivered by storage rather than certificate trading. System sizing and storage integration are more impactful than production credits because the economics center on consumption savings and resiliency.

Need Help Navigating Incentives? Reach Out to US Solar Supplier

Idaho homeowners — from urban neighborhoods to deeply rural homesteads — benefit from solar’s ability to reduce utility exposure, improve resilience, and support partial or full off-grid living when systems are designed correctly. With modest utility rates but meaningful rural energy challenges, solar plus storage offers a powerful path to independence and long-term cost control.

US Solar Supplier helps Idaho homeowners with materials selection, residential system design, storage integration, and utility compliance. Whether you’re designing a hybrid system that blends grid and off-grid resilience, optimizing for net metering credits, or planning for storm-related outages, our team can help you build a solution tailored to Idaho conditions.

👉 Contact US Solar Supplier for personalized guidance on solar equipment, design services, and homeowner-focused solar planning in Idaho.