Are solar panels worth it in Idaho?

7 factors to consider before getting solar panels in Idaho

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including dozens from Idaho. Here’s what to consider before making the switch.

1. Solar panel installation costs
2. Your energy consumption
3. Idaho solar incentives
4. Net metering buyback rates
5. How long you stay in your house
6. How you pay
7. The solar company you hire

1. Solar panel installation costs: $10,000 to $30,000

Average solar panel costs in Idaho are comparable to the national average. Before the federal solar investment tax credit (ITC), a typical residential system ranges from $13,450 to $26,900. That price drops to $9,415 to $18,830 after the full 30% tax credit.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Idaho, the average cost per watt is $2.69.

Average solar installation cost by system size in Idaho

2. Your current energy consumption

You get the most out of solar if most of your appliances are electric. Getting your electrical loads as low as possible before going solar means you can get a smaller system, which will be cheaper overall.

Solar panels generate electricity; they won’t help you save on gas bills. If you also have an electric vehicle, solar panels will save you even more.

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

A typical Idaho household needs a system with a capacity of 10.76 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

3. Idaho solar incentives: federal and state

Solar incentives in Idaho include a state income tax break and low-interest energy loan programs. Still, the federal solar investment tax credit (ITC) is usually the most significant financial incentive for homeowners going solar.

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

The ITC reduces your federal tax liability by 30% of the cost of your solar energy system. This tax credit applies to both residential and commercial installations, and it includes the cost of the solar panels and other equipment, as well as labor and additional features for monitoring the system.

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 ITC reduces what you owe to $12,000.

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

4. Net metering in Idaho: buyback rates

Idaho's net metering policy has changed recently. Instead of getting full credit for excess energy, you now get a lower rate under a new "net-billing" system. This might reduce the financial benefits of solar panels. Idaho Power is proposing more changes that could further decrease the payback for solar owners.

Getting a solar battery might be strategic if net billing rates continue to decline in Idaho. That way, you can store energy at home instead of tapping into the local grid when you need to. Check with your local utility for current policies and rates before deciding.

» GREENEST STATES: Idaho ranked No. 6 in 2024

5. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 10 years on average in Idaho. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It could sell for $16,400 more in a few years. However, you’d miss out on some of that $71,010 in total avoided utility costs over 25 years.

In other words, don't go solar just to raise your property value. Instead, consider a project with a better return on investment, like remodeling the bathroom or kitchen.

6. How you pay

It’s great if you can pay for the whole thing upfront. Of course, cash isn’t always an option. That’s when solar loans, leases and other agreements come into play.

• Lease: Leasing panels is one way to get the benefits of solar energy without the high upfront cost. A solar lease works like a car lease — you get to use the panels but don’t own them. Leasing can be good if you have limited savings. Solar lease agreements typically last 20 to 25 years.
• Loan: Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Home equity loan or line of credit (HELOC): Eligible homeowners can borrow against equity in their house to finance a solar panel system. These often have variable interest rates, meaning monthly payments can increase over time.

7. The solar company you hire

We’ve heard from more than a dozen verified solar customers in Idaho. One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. With the right solar company, though, it’s easy, and you’re happy with your system’s performance.

Use 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.

Monthly costs: solar payments vs. savings

Think of going solar in terms of your monthly costs. Given rising energy costs in Idaho and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway. Solar panels essentially generate free electricity once the initial installation costs are paid for.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Idaho averages 4 to 4.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the size and angle of my roof? Idaho (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

Pros and cons of solar panels in Idaho

It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, you’ll likely be paying much less than you would for traditional utility bills.

Benefits of solar panels in Idaho

• Cheaper energy bills: The average homeowner in Idaho uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.
• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
• Higher home resale value: Installing solar panels can significantly increase a home's value. According to the study mentioned above, houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

Drawbacks of solar panels in Idaho

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000.
• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Idaho

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Idaho’s top solar companies to learn more.

Bottom line: Is going solar in Idaho worth it for you?

Going solar in Idaho can be a smart investment for homeowners looking to reduce their long-term energy costs and increase their energy independence. While the upfront costs can be significant, federal tax credits and potential energy savings over time make solar installations increasingly attractive.

However, recent changes to net metering policies in the state may affect the financial returns, so it's crucial for prospective solar adopters to carefully evaluate their specific situation, including energy usage patterns and local incentives, to determine if going solar is worthwhile for their household.

Solar costs vs. savings: Idaho and nearby states