Low electricity rates and modest solar incentives make Idaho a challenging market for solar, despite decent sun hours in southern regions.
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Idaho's solar economics are challenging: With low electricity rates at 10¢/kWh and limited state incentives, solar faces headwinds despite 4.5 daily peak sun hours. Idaho Power serves most of the state with net metering available.
For Boise and Twin Falls residents, solar systems typically take 11-13 years to pay back. Low electricity costs from hydroelectric power make solar less compelling than in higher-rate states.
| Incentive | Amount | Status |
|---|---|---|
| Federal ITC | 30% of system cost | Active |
| Idaho Power Net Metering | Avoided cost rate | Limited |
| Property Tax Exemption | Not available | None |
| Sales Tax Exemption | Not available | None |
| System size | Gross cost | After ITC | Annual savings | Payback |
|---|---|---|---|---|
| 6 kW | $16,800 | $11,760 | ~$960/yr | ~12.3 years |
| 8 kW | $22,400 | $15,680 | ~$1,280/yr | ~12.3 years |