Find out if solar panels are right for your home in Idaho.
As of 2023, the Gem State is shining bright with an average solar panel cost of just $2.97 per watt. If you are considering a 6kW system you’re looking at an average price of $17,580, but don't let that number scare you off. With the 30% federal investment tax credit (ITC) and various local incentives, you could be soaking up the sun for a lot less.
In fact, the payback period averages around 12.54 years, and over two decades, you could save a whopping $15,936!
So, is solar worth it in Idaho? It’s not an easy decision. We’ll give you everything you need to know to make the decision for yourself. Stick around as we break down the costs, benefits, and everything in between.
The average price for a home solar panel system in Idaho is $17,580 for a 6kW system or about $2.93 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Idaho | $16,560 | $27,600 | $8,280 | $2.76 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $13,800 | $8,785 |
| 6 kW | $16,560 | $10,542 |
| 7 kW | $19,320 | $12,299 |
| 8 kW | $22,080 | $14,056 |
| 10 kW | $27,600 | $17,570 |
Unfortunately, nothing is perfect - including solar. To avoid buyer's remorse, you should think about all the pros and cons associated with installing solar equipment on your home. Then weigh them against each other to decide if it makes sense for you.
Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.
In General, Idaho is a state where it will definitely depend on where you live, you financial situation, and what’s important to you.
Going solar in Idaho is a compelling option for many homeowners. The state offers a variety of incentives, like the Residential Alternative Tax Deduction, which allows you to deduct up to 40% of the installation and equipment costs from your personal income taxes. This is in addition to the 30% federal tax credit, making the initial investment more manageable. With an average payback period of 12.54 years and solar panels that last around 25 years, you're looking at a decade or more of pure savings. You'll not only reduce or even eliminate your electric bills but also increase your home's value by an average of 4.1%. Some local utility providers even offer net metering tariffs, giving you the opportunity to sell excess energy back to the grid.
However, let’s look at that payback year of 122.54 years again. When we look at the actual amount of production from the panels it depends on where you live. The sunniest states can experience a 7 year payback. In Idaho if the angle of your house isn’t right, or if you’re in an area that tends to be cloudier, this will drastically effect your production more than others.
So, consider everything. Solar is not a bad idea for Idaho, but there’s more to consider than the upfront cost.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Idaho. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Beyond the 30% Federal Solar Tax Credit, you might qualify for additional incentives that can substantially cut down the cost of your solar panel setup. These perks can vary from state to state and even within local communities. Your local utility or city may offer incentives that can add up to significant savings.
The table below outlines the current incentives available in Idaho. However, this isn't an exhaustive list. Always consult your local utility provider for other potential savings opportunities.
| Name | State | Category | Type |
|---|---|---|---|
| Idaho Solar Easements & Access Laws | ID | Regulatory Policy | Solar/Wind Access Policy |
| BEF - Solar 4R Schools | ID | Financial Incentive | Grant Program |
| Residential Alternative Energy Tax Deduction | ID | Financial Incentive | Personal Tax Deduction |
| Low-Interest Energy Loan Programs | ID | Financial Incentive | Loan Program |
| Idaho Power - Net Metering | ID | Regulatory Policy | Net Metering |
| Clean Energy Project Bond Program | ID | Financial Incentive | Bond Program |
| Solar Energy Equipment Certification | ID | Regulatory Policy | Equipment Certification |
| Alternative Fuel Tax Exemption | ID | Financial Incentive | Corporate Tax Exemption |
| BEF - Renewable Energy Grant | ID | Financial Incentive | Grant Program |
| Idaho Power - Interconnection Guidelines | ID | Regulatory Policy | Interconnection |
There are hundreds of solar companies in Idaho. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
The potential policy changes happening in Idaho are an example of how solar policy changes can affect the affordability and buying decisions of residents. At the same time, the number of solar customers has surged from nearly 1,000 in 2016 to over 13,000 in 2022, largely due to decreasing installation costs
Policy changes are discussing two major changes: a switch to Time of Use Rates (TOU) and solar credit methods.
If you aren’t very familiar with your electricity rates, check out this article about the best time to do laundry, it is about knowing the differences between rate types.
Idaho Power has created a proposal to reduce the credits given to customers who sell their excess solar energy back to the grid. Specifically, the changes would include shifting from net monthly to real-time net billing. This would include altering the excess exported energy credit from a fixed kilowatt-hour (kWh) rate to a variable rate that would be updated annually. The company argues that these changes aim to be more equitable, especially for the 98% of their customers who don't have solar panels.
Solar advocates, including the Idaho Climate Justice League, claim that Idaho Power's proposal contradicts its own clean energy goals set for 2045.
Another shift includes introducing time-based rates, considering whether energy is produced during "on-peak" or "off-peak" hours. On-peak is defined as 3-11 p.m., Mondays through Saturdays, from June 15 to September 15. The idea is to make the energy sold back more valuable during high-demand periods.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Idaho decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Idaho can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Idaho is $17,580 for a 6kW system or about or about $2.93 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly. Besides operation, it is recommended they are cleaned off about once a year to be free from any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Most solar panels come with a 25 to 30-year performance warranty, which guarantees a certain level of electricity production. This is also their expected life span but can continue to generate power beyond 30 years. Make sure to read the fine print to understand what's covered and what's not. Some warranties might only cover specific parts of the solar system, like the inverter or the panels themselves.
The inverter, which converts the direct current (DC) from the panels into alternating current (AC) for your home, typically has a shorter lifespan than the panels. You might need to replace it once during the lifetime of your solar system. Factor this into your long-term cost calculations.
Some homeowner's insurance policies will cover solar panels, but it's best to double-check. You may need to add a separate rider or even choose a different insurance provider to ensure your investment is protected.
For a system with no moving parts, it may seem like putting panels are your roof is a breeze. While DIY projects may be a frequent endeavor for the home handyman, DIY solar panel installation isn’t something we would recommend for most.
The biggest challenges at play are the intricate electrical work. Not only can mistakes damage the expensive system, there are also serious safety concerns for those who aren’t electricians.
We recommend at least getting a quote before you try taking on this project. You might be surprised to find that labor costs are a relatively small portion of the overall expense.
When it comes to solar panels, you'll mainly encounter two types: Monocrystalline and Polycrystalline. Both have their advantages and disadvantages, but either can meet your home's energy needs effectively. In general, Mono-panels are more expensive and more efficient. Poly-panels are slightly less efficient but more affordable. Due to the efficiency difference, you may need a few more poly-panels than mono-panels. There are a handful of other factors as well: roof weight capacity, roof area, roof angle and orientation, and of course your financial limitations.
Instead of making a blind choice, consult with a solar installer who can assess various factors like your budget, location, and energy requirements. They can provide a tailored recommendation, ensuring you get the most efficient panels for your specific situation.
