Cost of solar panels in Idaho (2024)

How much do solar panels cost in Idaho?

With professional installation, a typical 8-kilowatt (kW) residential solar panel system in Idaho costs $21,520. That price drops to $15,064 after the full federal solar investment tax credit (ITC).

This doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence, especially if you go off-grid. Permitting, utility fees and maintenance also add to the cost of going solar.

The size of your solar panel system is another big factor in your overall solar costs. The average size of solar systems in Idaho is 10.76 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system.

Average solar installation cost by system size in Idaho

Are solar panels worth it in Idaho?

Installing solar panels leads to big long-term savings on electricity bills for Idaho homeowners. On average, you’ll spend $9,415 to $26,900 for panels that last about 25 years. Over that same time period, you’d avoid approximately $71,010 in total utility costs. If you also have an electric vehicle, solar panels will save you even more.

One resident, Terra in Coeur d’Alene, Idaho, told us: “Happy we are part of the solar grid! With the cost of everything going up this will at least cover us with inflation. Not to mention resale value if we ever sell our home.”

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Idaho gets a good amount of sunlight, especially in the summer, which contributes to the effectiveness of solar panels. But it doesn't work out for everyone.

We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

If your house is a good candidate for solar, it’s worth it if you like the idea of lower monthly utility bills and more energy independence.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Idaho

Several factors determine how much your new system will cost. The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

» BEST STATES FOR SOLAR: Idaho ranked 43rd in 2024

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. You’ll hear installers talk about how “efficient” their panels are.

Solar panel efficiency is a measure of how well a panel makes electricity. The more efficient the solar panels you buy, the fewer panels you need. While more efficient panels cost a little more, you save by buying fewer panels.

In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Additional solar equipment costs

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, life span, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a stand-alone system for $80 to $400.

Condition of your roof

Quality solar panels should last 25 to 30 years, and your roof needs to last just as long. If you want to ensure a seamless and cost-effective solar journey, your roof must match the system's longevity.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. Trust us: Get your roof inspected, fixed or replaced before you go solar.

Labor costs

Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the DIY route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

Local permits and fees

Permits and interconnection fees, though relatively cheap, are worth mentioning. If you live inside the city limits, it's more than likely you'll need to get permits to add solar panels to your home. Expect permits to add several hundred dollars to the overall cost.

» GREENEST STATES: Idaho ranked sixth in 2024

How to save money on solar panels in Idaho

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Idaho:

• Compare quotes: Get quotes from at least three or four different solar companies in Idaho. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Use incentives: In addition to the federal solar tax credit, Idaho has multiple local incentives and programs. Some solar panel manufacturers offer rebates on their products. While these may not be specific to Idaho, they can still provide additional savings.

» MORE: Why are solar panels so expensive?

Solar incentives, tax credits and rebates in Idaho

The federal solar investment tax credit (ITC) is the biggest factor in reducing the cost of going solar in Idaho. If you install a residential solar panel system by the end of 2032, you will receive a tax credit equal to 30% of the system's total cost, including equipment, labor and permits.

The ITC drops to 26% in 2033 and 22% in 2034.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

Idaho has a few more incentives to help with the price of going solar, including low-interest loan programs, available to full-year and part-year residents.

» EXPLORE: Idaho solar incentives

How can I pay for solar panels in Idaho?

You can pay cash, but a lot of people finance their installation costs or lease the equipment.

• Loan: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan terms typically last eight to 20 years.
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Idaho

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Idaho.

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Idaho homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Idaho and other states.

Solar costs vs. savings: Idaho and nearby states