Idaho, the “Gem State,” basks in abundant sunshine throughout the year, making it an ideal location for homeowners to invest in solar energy systems. While Idahoans enjoy remarkably low electricity rates, ranking third-lowest in the nation, the adoption of solar power has been relatively slow. However, this trend is expected to change in the coming years as more residents recognize the long-term financial benefits and environmental advantages of going solar.
To help you understand the potential rewards of investing in solar energy, let’s explore the various solar incentives, rebates, and benefits available to Idaho homeowners.
Idaho Solar Incentives and Rebates
Idaho Solar Tax Credit
Idaho offers a generous state tax credit that can significantly reduce your tax liability. When you invest in a residential solar energy system, you can deduct 40% of the system’s cost from your state taxes in the first year, followed by a 20% deduction for three consecutive years.
For example, if your solar energy system costs $18,000, your state tax credit would be $7,200 (40% of $18,000) in the first year, and $3,600 (20% of $18,000) for the following three years.
Federal Investment Tax Credit (ITC)
In addition to the state tax credit, Idaho homeowners can take advantage of the Federal Investment Tax Credit (ITC). This substantial tax incentive currently allows you to deduct 26% of your solar system’s cost from your federal taxes. However, it’s important to note that the tax credit is scheduled to decrease to 22% in 2023, making it advantageous to go solar sooner rather than later.
If you invest in a solar panel system by the end of 2032, the federal tax credit is 30% of the system’s total cost, including equipment, labor, and permitting fees.
For example, if your solar energy system costs $20,000, your federal solar tax credit would be $6,000 (30% of $20,000). By 2033, the federal tax credit will drop to 26%.
Idaho Low-interest State Energy Loans
The Idaho Governor’s Office of Energy Resources (OER) State Energy Loan Program provides low-interest financing options for homeowners investing in solar panel systems. You can borrow between $1,000 and $15,000 for residential projects and $1,000 to $100,000 for commercial and industrial projects at a 4% interest rate with a five-year term.
Idaho Solar Easement State Laws
Idaho law allows for solar easements, which enable homeowners to enter into agreements with their neighbors to ensure adequate sunlight exposure for their solar panels. These easements are typically attached to the property title, providing long-term protection for your solar investment.
Net Metering in Idaho
While statewide net-metering laws are not currently in place, three major investor-owned utilities in Idaho – Avista Utilities, Idaho Power, and Rocky Mountain Power – have established net-metering programs approved by the Idaho Public Utilities Commission (PUC). These programs allow homeowners to offset their energy costs by earning credits for the excess electricity their solar panels generate and feed back into the grid at the full retail rate.
Maximizing Your Solar Investment
To ensure you take full advantage of all available solar incentives and rebates, it’s advisable to consult with a reputable solar company. They can guide you through the process and help you make an informed decision about switching to solar power.
Embrace the sun’s potential and join the solar revolution today. Reduce your energy costs, contribute to a greener environment, and benefit from Idaho’s solar incentives and rebates.
