Solar Incentives & Tax Credits in Idaho (2026)

Idaho residents can take advantage of multiple solar incentives to reduce the cost of going solar. With 3 state and local programs, homeowners can significantly lower their upfront investment and accelerate their payback period.

Available Incentives in Idaho

Idaho State Tax Deduction

Tax Credit

Idaho offers a state income tax deduction for residential solar installations.

Value

40% of cost in Year 1 (up to $5,000), 20% in Years 2-4 (up to $5,000 each)

Eligibility

Residential installations

Net Metering

Program

Idaho utilities offer net metering, crediting you for excess solar energy at the full retail rate.

Value

Full retail rate credit

Eligibility

Customers of Idaho Power and other regulated utilities

Property Tax Exemption

Exemption

Solar energy systems do not increase your property tax assessment.

Value

100% exemption on added value

Eligibility

All residential solar installations

Net Metering in Idaho

Available

Idaho offers full retail rate net metering through Idaho Power and other regulated utilities. Excess credits roll over month-to-month, making it one of the more favorable net metering states in the region.

Renewable Portfolio Standard (RPS)

Idaho RPS Target

No mandatory RPS (voluntary goals)

A strong renewable portfolio standard signals long-term government support for solar energy, which often translates to continued incentives and favorable policies for homeowners.

Solar Incentive FAQs for Idaho

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