How Much Do Solar Panels Cost in Idaho? (2024 Savings Guide)

How Do Idaho’s Solar Prices Compare to the National Average?

The national average cost for solar equipment on a per-watt basis is $3.33, which means the typical cost in Idaho of $3.26 is below average. That means that, on a watt-per-dollar basis, your money goes a little further in Idaho than it would in most other states.

However, Idahoans use more electricity per month than most U.S. residents, with the average rate of consumption sitting at around 955 kilowatt-hours (kWh), a bit higher than the national average of 881 kWh. Higher energy demands mean larger systems are required for energy independence, and larger solar energy systems naturally cost more.

The average all-in solar power system price in Idaho is $32,600, which is around $2,500 over the U.S. average of $29,970 before the federal credit is taken. After the credit, the average system costs in Idaho and the country as a whole are $22,820 and $20,979, respectively.

As such, the all-in cost to convert to renewable energy in Idaho is above average, even though the cost per watt is lower. This is largely due to the bigger systems needed to offset energy bills and reduce effective electricity rates in Idaho.

What Are the Main Factors of Solar System Costs in Idaho?

The all-in cost of converting to solar in Idaho is influenced by three primary factors, two of which push the cost above average. The main things that dictate the cost of solar panels in Idaho include the following:

• The above-average energy demands in Idaho
• The demand for solar batteries
• The average amount of sunlight available in the state

In the following sections, we’ll explain how these three factors affect the pricing of clean energy systems in the Gem State.

The Above-Average Energy Demands in Idaho

The most influential cost factor for solar equipment is the system size you need, which is dictated in large part by the amount of energy you consume in your home on a monthly basis. The more power you need, the larger your system will be and the more you’ll spend on an appropriately-sized system to offset your power consumption.

According to the Energy Industries Association (EIA), Idahoans consume an average of 955 kilowatt-hours (kWh) of electricity each month, which is well above the national average of 881 kWh. To account for the greater energy needs, residents need to install a 10 kW system, which is larger than the national average size of 9 kW.

Given the average cost per watt in Idaho, that additional kW installed pushes up the total installation cost by around $3,260, ultimately making solar systems more expensive in Idaho than in most other states.

We do recommend upsizing your system a bit to ensure you maximize your long-term savings and account for panel degradation during the first year and over the panel lifespan. However, know that doing so will cost more in Idaho than in most other states.

The High Demand for Solar Batteries

Solar batteries add around $10,000 each to your total installation costs, so they can very quickly cause prices to skyrocket. Batteries are most beneficial in areas that don’t have access to net metering, which is a policy that lets you bank excess solar energy produced with your panels and call on it at a later date or time for free.

Where net metering isn’t accessible, solar batteries often pay for themselves because they give you access to effective net metering, letting you store excess energy on-site to use for free when your panels aren’t producing, like at night.

Idaho doesn’t mandate net energy metering, and although three of the larger power companies do currently offer it voluntarily — Rocky Mountain Power, Idaho Power and Avista Utilities — many residents opt for batteries in case that program is discontinued in the future.

The high demand for batteries means the average overall cost to convert to solar in Idaho is pushed even higher.

The Average Sunlight Availability in Idaho

Finally, the average number of sunny days per year in an area plays a role in your system costs. States that have more cloudy weather than others will have solar systems that produce less energy and offset less of the local energy costs. To combat the lower value of panels in those areas, homeowners typically install larger systems to generate more power.

Thankfully, Idaho sees around 206 sunny days per year, which is right in line with the national average. That means homeowners in the state usually don’t need to install larger systems to make up for losses due to a lack of sunlight.

We do suggest letting a professional size your system properly for you, as there are many factors to take into consideration, including shading on your roof and the direction your roof points. You might still need to install a larger system if one of these other factors reduces your solar production capability.
Watch Below: Learn How Much This Homeowner Paid For Solar and If It Was Worth It

Additional Costs of Going Solar in Idaho

Solar panels and batteries tend to make up the bulk of the solar installation costs in Idaho, but there are some other charges you might want to consider. Below, we’ll discuss some additional costs that could be tacked onto your installation total, but you should keep in mind that some installers include these in their initial estimate and don’t charge separately for them.

• Additional solar equipment: Solar panels need to be wired to your home to function properly, which means you’ll need wiring, conduit and inverters to connect your panels. These are sometimes charged separately, as are other small components like squirrel guards and snow guards, both of which are popular in Idaho.

• Building permits: All municipalities in Idaho require building permits for solar panel installation. Most building departments charge fees for permit filing, with the cost typically falling between $25 and $350 in the state. Your installer will likely pay these fees and file for the permits for you, but the charges will be passed on to you.

• Interconnection fees: Your utility company requires an interconnection application before your system can be connected to the grid, and this usually involves an inspection as well. Most companies charge an application fee, which averages around $100 in Idaho. You might also be charged reinspection fees if you miss your initial inspection. Again, your installer will likely pay this, but the charge will appear as a pass-through to you.

• Product markup and administration fees: Many installers mark up the equipment costs to increase their profit margins, which can account for a few hundred or even thousands of dollars in some cases. Some also charge admin fees for things like filing for permits and interconnection for you. These charges are usually nominal.

What Maintenance Costs Can Solar Owners Expect in Idaho?

While the initial cost of converting to solar in Idaho is high, the ongoing cost should be minimal. As far as any repairs to your panels, they should be covered by either your homeowner’s insurance policy — if they get damaged by extreme weather — or your manufacturer’s warranty — if any component fails.

The only other service some property owners pay for is panel cleaning, which keeps the surface of the panels free from any debris to maximize energy production. In most states, rainfall keeps the panels sufficiently clean. Although Idaho sees below-average amounts of rainfall, it should be plenty to avoid the $100 to $150 you’d otherwise spend on panel cleaning.

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Which Solar Financing Options Will Help You Save the Most in Idaho?

There are four primary payment options for solar panels systems: cash, a solar loan, a solar lease or a power purchase agreement (PPA). You may not have access to all of these, depending on the installer you choose, but the option you pick from your installer will play a significant role in your immediate and long-term savings.

A cash purchase is, far and away, our top recommendation if you can afford it. Paying in cash does require the entire system cost to be paid at once. This is unrealistic for a lot of homeowners, especially in an area like Idaho, where the conversion cost is naturally above-average.

However, a cash payment leads to immediate panel ownership, which means your monthly energy savings immediately start paying off your system. Cash payments yield the fastest panel payback period and the highest long-term savings.

A solar loan is going to be a more accessible option because the initial payment is usually $0. Instead, you pay off your loan in monthly installments plus interest. The interest will cut into your savings and push up your total system cost, which also means your payback period will be a bit longer.

A lease — basically a panel rental where you get to use the solar energy the panels generate for yourself — is even more accessible because the initial cost is almost always $0, and it doesn’t have the same credit requirements as a loan. However, leases provide far fewer savings and don’t let you take the federal investment tax credit (ITC), an average potential value of $9,780 in Idaho.

A PPA also doesn’t let you take the federal solar tax credit, and it saves even less than a lease, on average. However, it’s the most accessible option.

If you want to keep your options open, we recommend considering going solar with SunPower or Pell Solar. SunPower accepts all four payment options, and Pell Solar accepts cash, loans and leases.

We recommend using our solar calculator to see what your system will cost and then choosing the option within your budget that provides the most benefit upfront and over time. You can use the table below to help decide which is best.

What Are Other Ways You Can Save When Going Solar in Idaho?

In addition to choosing the best solar payment option for your budget, there are a few other things you can do to minimize your upfront system total and maximize your long-term savings. Some of these money-saving strategies include the following:

• Carefully considering a solar battery
• Taking advantage of solar tax incentives
• Choosing a high-efficiency panel brand

We’ll explain why these tips can help save you money in the following sections.

Consider a Solar Battery Carefully

Solar batteries are expensive, usually adding $10,000 or more to your panel installation price. They deliver the convenience of not losing electricity during power outages, but in areas where net energy metering isn’t accessible or comes with a below-retail credit value for excess energy, they can actually pay for themselves and save money over time.

Unfortunately, it’s not cut and dry whether or not installing a battery is a good financial decision in Idaho. If you have access to a good net metering program — like the ones from Rocky Mountain Power and Idaho Power — then a battery will only cost you money and save you none. In that case, you can save around $10,000 by avoiding a battery.

However, customers who don’t have access to net energy metering would likely benefit financially from installing a battery, especially given the above-average energy demands in Idaho that the battery could help offset.

Take Advantage of Solar Incentives in Idaho

Another great option for instant and ongoing savings is to take advantage of the Idaho solar incentives and solar rebate programs.

All residents have access to the federal tax credit, which can bring down your income tax bill by 30% of your system costs, or around $9,780 in Idaho, on average.

Idaho is one of the few states where a state tax credit is also available. The Residential Alternative Energy Tax Deduction can deliver a credit of 40% of your system cost over four years. The annual cap is $5,000, so your total potential savings can hit $20,000.

Taking these perks along with net metering — if it’s available to you — can offset the majority of your system costs, speed up your panel payback timeline and maximize your solar savings over time.

Choose a High-Efficiency Panel Brand

Finally, we recommend you choose a high-efficiency panel brand like Maxeon in Idaho, as this will increase your solar production and savings.

Idaho sees an average number of sunny days per year, which normally would mean you could get away with a less efficient panel brand. However, since the monthly energy demands in the state are well above-average, having a high-efficiency panel brand will help ensure you offset the most energy possible.

High-performance panels will cost more per watt, on average, but you could get away with installing a smaller system if you choose panels with a higher efficiency rating. Plus, they often pay for themselves over time by maximizing your production and solar savings.

What Are the Typical Costs of Idaho’s Solar Installers?

Every solar installer in Idaho will charge different prices for their products and services, and the company you choose can push your total system cost up or down by hundreds or even thousands of dollars.

The table below includes a quick look at some relative pricing for what we believe are the best solar companies in Idaho. This should help you figure out which of the best providers in the area are likely to fit into your budget.

How Are Solar Costs and Regulations Trending In Idaho?

According to the Solar Energy Industries Association (SEIA), the cost of solar panels in Idaho has dropped by 54% in the past ten years. The typical system that cost $32,600 in Idaho today would have totaled over $65,000 just a decade ago.

The steep price reduction for PV equipment is due in large part to improved manufacturing processes. As solar becomes more popular, manufacturing gets streamlined, and prices come down. Since solar is still gaining popularity and there’s room for the production process to improve even more, we expect the cost of solar equipment to continue to drop in Idaho in the near future.

As far as solar incentives and rebates go, we don’t expect any changes in the near future. Idaho doesn’t have many solar incentives available, especially since net metering isn’t mandated, and the only other state-wide perk is a property tax exemption.

Additionally, Idaho doesn’t have a renewable portfolio standard (RPS) goal set. RPS goals are often the catalysts for new solar perks being offered, and without one, we don’t foresee new ones being offered unless a goal is set.

At this time, we’d be surprised if there were any changes to the incentive programs available in Idaho in the coming years.

While the lack of incentives is a drawback, the prices of solar equipment being lower than ever before is a major positive. With system costs lower than ever before, there has never been a better time to convert to solar in Idaho. To take advantage, you can use the tool below to get the installation process started by getting some free quotes for your system.

Read More About Going Solar

• What Are the Best Solar Installers in Idaho?
• How Much Can You Save With Solar Incentives in Idaho?
• Is Solar Worth It in Idaho?

The cost information presented in this article is derived from a comprehensive analysis, incorporating data from multiple industry sources. The average cost per watt per state was calculated based on figures from Consumer Affairs, Energy Sage, and Berkeley Lab’s Electricity Markets & Policy Department. Additionally, monthly energy consumption and the average monthly cost of electricity were sourced from the U.S. Energy Information Administration, ensuring a well-rounded and accurate representation of the information presented.