Idaho Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Idaho homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $16,500 in Idaho, that's a direct tax credit of $4,950. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

In addition to the federal ITC, Idaho offers its own state solar tax credit: Deduction: 40% year 1 (up to $5,000), then 20% for 3 years (up to $5,000/yr). This state credit can be claimed alongside the federal credit, stacking your total tax savings. For a 6kW system, the Idaho state credit saves you approximately $5,000.

Combined with the federal ITC, your total tax credits amount to $9,950 — reducing your net system cost to just $6,550. That's a 60% reduction from the gross cost.

Idaho does not currently offer a statewide property tax exemption for solar installations. This means the added home value from solar panels may increase your property tax assessment. Some local jurisdictions may offer their own exemptions — it's worth checking with your county tax assessor. Even without this exemption, the energy savings from solar typically far outweigh any marginal property tax increase.

Idaho does not currently exempt solar equipment from state sales tax. This means you'll pay the applicable sales tax on your solar system purchase. However, the 30% federal ITC and other available incentives more than compensate for this cost in most cases.

Net metering policy: Varies by Utility. Utility-specific programs; Idaho Power offers net metering at avoided cost The current system size cap is 25 kW.

Net metering policies in Idaho vary by utility. Contact your local electric provider to understand the specific buyback rate and any system size limitations that apply to your service territory.