Idaho Power Solar Guide 2026

Idaho Power serves 600,000+ customers across southern Idaho and eastern Oregon. Great sunshine, but some of the lowest electricity rates in America create challenging solar economics. Here's the honest breakdown.

Quick Answer
Idaho Power has challenging solar economics due to the lowest electricity rates in America ($0.08-$0.10/kWh from hydroelectric generation). Schedule 84 offers net metering up to 25 kW, but export credits are reduced compared to retail rates. Excellent Boise area sunshine (4.5-5.0 peak sun hours) is offset by cheap power. Expect 12-18+ year paybacks. Solar here is about energy independence and environmental values, not quick ROI.

Idaho Power Overview

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From my experience:I have to be straight with you: Idaho Power territory is one of the toughest places in America to justify solar purely on economics. Rates at $0.08-$0.10/kWh are incredibly cheap (thanks to all that Snake River hydroelectric power), which means your savings per kWh are tiny. When you combine that with Schedule 84's reduced export credits, the math gets tough. But here's the thing—if you want energy independence, care about generating your own clean power, or want backup capability for outages, those are valid reasons that go beyond simple payback calculations.

Idaho Power is headquartered in Boise and serves the Snake River Valley region across southern Idaho and parts of eastern Oregon. Known for hydroelectric generation from the Snake River, Idaho Power delivers some of the lowest electricity rates in America—great for consumers, but challenging for solar economics.

Idaho Power Quick Facts 2026
Customers: 600,000+ in ID and OR
Net metering: Schedule 84 (reduced export rates)
Electricity rates: $0.08-$0.10/kWh (among lowest in US)
Peak sun hours: 4.5-5.0 hours (Boise area)
On-peak: Summer afternoons (3-8 PM)
Solar rating: 2/5 stars (economics) (Source: NREL Solar Resource Data, utility tariff filings)

Schedule 84: Net Metering

Idaho Power's Schedule 84 (On-Site Generation) provides net metering for residential solar systems. However, there's an important distinction: export credits are reduced compared to retail rates. This means the power you send to the grid is worth less than the power you consume.

Schedule 84 Details

FeatureIdaho Power Policy
System size limit25 kW residential
Export credit rateReduced (below retail)
Credit rolloverMonthly, carries forward
Annual true-upMarch 31
Excess paymentAvoided cost rate (low)
Export Rate Reality
Unlike utilities with full retail net metering, Idaho Power pays reduced rates for your solar exports. This means oversizing your system doesn't help as much—you want to size for self-consumption and avoid large exports. Batteries can help store excess for your own evening use. (Source: Idaho Power Schedule 84 tariff)

Annual Reconciliation

Each March 31, Idaho Power reconciles your account. If you have excess credits remaining after offsetting your annual usage, they're paid out at the "avoided cost" rate—significantly lower than retail. The strategy is to size your system so you use most of what you generate without large surpluses.

Rates and Economics

Idaho Power's rates are among the lowest in the nation, which is both good news and bad news for solar:

Rate Structure

Rate ComponentDetails
Average residential$0.08-$0.10/kWh
Rate structureTiered (higher usage = slightly higher rate)
Time-of-useOptional, peak = summer afternoons
Service areaSouthern ID, eastern OR

Why Low Rates Challenge Solar

Solar economics depend on what you're offsetting. At $0.15/kWh (national average), every kWh your panels produce saves $0.15. At Idaho Power's $0.08-$0.10/kWh, each kWh saves roughly half as much. Same sunshine, same panel cost, but half the savings—that's why payback takes longer.

Solar Economics for Idaho Power Customers

System SizeEst. Cost (2026)Annual SavingsPayback Period
5 kW$13,000-$15,000$450-$55014-18+ years
7 kW$18,000-$21,000$630-$77014-18+ years
10 kW$26,000-$30,000$900-$1,10014-18+ years
[Editor's Note, Feb 2026]:Costs assume purchased systems (no federal tax credit in 2026 for homeowner purchases). PPA/lease options still access 30% commercial credit through 2027, potentially improving economics.

Federal Tax Credit (2026)

Ownership TypeFederal Credit
Cash/Loan (purchased)None (25D expired Dec 2025)
PPA/Lease30% (48E through Dec 2027)

Solar Production Potential

Despite challenging economics, Idaho Power territory has excellent solar resources. The Boise area and Treasure Valley receive strong, consistent sunshine.

Solar Resource by Area

AreaPeak Sun HoursAnnual Production (per kW)
Boise4.8-5.2 hours~1,450-1,550 kWh
Twin Falls4.5-5.0 hours~1,400-1,500 kWh
Nampa/Caldwell4.7-5.1 hours~1,420-1,520 kWh
Eastern Oregon (Ontario)4.5-4.9 hours~1,350-1,450 kWh
The Idaho Paradox
Idaho has excellent solar production potential (4.5-5.0 peak sun hours)—comparable to many sunbelt states. The challenge isn't the sun, it's the economics. Cheap hydroelectric power means low rates, which means less value per kWh of solar production. (Source: NREL PVWatts Calculator)

Time-of-Use Considerations

Idaho Power offers optional time-of-use rates with peak hours during summer afternoons (typically 3-8 PM). If you have a battery, you can store midday solar production and use it during peak hours, improving your economics. Without a battery, solar production naturally tapers as peak hours begin.

Interconnection Process

Idaho Power's On-Site Generation interconnection process is straightforward:

  1. Pre-application (optional): Discuss your project with Idaho Power's solar team
  2. Application: Submit On-Site Generation application with system details
  3. Engineering review: Idaho Power reviews your system design (timeline varies by complexity)
  4. Interconnection agreement: Sign the formal agreement
  5. Installation: Your installer completes the work and schedules inspection
  6. Final inspection: City/county and Idaho Power inspection
  7. Permission to operate: Idaho Power activates your net metering

Timeline Expectations

PhaseTypical Timeline
Application to approval2-4 weeks
Installation1-3 days
Inspection to PTO1-3 weeks
Total process4-8 weeks

Frequently Asked Questions

Should I get solar with Idaho Power?

It depends on your priorities. Pure ROI? Idaho Power territory is challenging—12-18+ year paybacks don't excite most investors. But if you value energy independence, want backup power capability, care about environmental impact, or want to lock in energy costs for 25+ years, those are valid reasons beyond simple payback math.

Would a battery help with Idaho Power?

Batteries can help in two ways: (1) Store excess solar for your own evening use instead of exporting at reduced rates, and (2) Provide backup power during outages. However, batteries add $10,000-$15,000 to system cost, extending payback further. Most valuable for backup power goals rather than economics.

Why are Idaho Power rates so low?

Hydroelectric power from the Snake River. Idaho Power generates most of its electricity from dams, which have low operating costs compared to coal, gas, or even solar. Great for consumers, challenging for solar economics.

What about community solar?

Check Idaho Power's current community solar offerings. These allow you to subscribe to a share of a larger solar project without installing panels on your roof. Economics and availability vary—ask Idaho Power directly for current program status.

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From my experience:If someone asks me "should I go solar in Boise?" I tell them to be realistic about the numbers. You're not getting 6-year payback like in California. But I also remind them that solar panels last 25-30 years. Even with a 15-year payback, you get 10-15 years of nearly free electricity. And there's value in energy independence that doesn't show up in spreadsheets—especially when you see your neighbor's lights go out and yours stay on.
[Editor's Note, Feb 2026]:Idaho Power rates and Schedule 84 terms are subject to change. Verify current rates, export credit values, and program availability with Idaho Power before making decisions.

Questions About Idaho Power Solar?

Our AI can help you understand Schedule 84, realistic payback expectations, and whether solar fits your goals in Idaho Power territory.

Ask About Idaho Power Solar
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Written by

Lincoln Panasy

Founder, SolarQuest AI • Solar Expert Since 2018

Lincoln created SolarQuest AI after seeing too many homeowners get burned by pushy solar salespeople. With 8 years of experience in the solar industry since 2018, he writes and reviews all content on this site—combining his real-world expertise with AI tools to deliver accurate, unbiased solar education.