Solar Incentives in Idaho (2026)
The 30% federal tax credit for purchased home solar ended Dec 31, 2025. Here's exactly what solar incentives are left in Idaho in 2026 — and how much they're worth.
| State tax credit | 40% deduction (first year, up to $5,000) |
|---|---|
| SREC market | No |
| Net metering | No statewide net metering — see Idaho net metering → |
| Other incentives | Idaho offers a residential alternative-energy income-tax deduction (40% of cost the first year, then 20% for three years, capped at $5,000/year). |
Incentive details reflect programs active in 2026. Programs change and often have caps or waitlists — always confirm current status on DSIRE and with your installer.
Federal credit status (2026): the 30% residential clean-energy credit (Section 25D) was repealed for systems purchased and placed in service after Dec 31, 2025 — cash and financed buyers can no longer claim it. A leased or PPA system can still access the commercial credit (Section 48E), which its owner can claim through 2027 and may pass on as a lower price. That makes Idaho's state and utility incentives, not the federal credit, the main lever on your 2026 payback.
How much can you actually save in Idaho?
A typical 8 kW install in Idaho costs about $20,800 before incentives. Idaho's state tax credit (40% deduction (first year, up to $5,000)) comes straight off that, and no statewide net metering plus idaho offers a residential alternative-energy income-tax deduction (40% of cost the first year, then 20% for three years, capped at $5,000/year) drive the rest of the payback. With the 30% federal credit gone, that state credit is now the single biggest upfront saving most Idaho homeowners can claim.
See full solar costs & payback for Idaho
Solar panel cost in Idaho →Idaho solar incentives FAQ
Does Idaho have a solar tax credit?
Yes. Idaho offers a state solar tax credit of 40% deduction (first year, up to $5,000), claimed on your state income taxes. It's separate from (and, in 2026, no longer stacked with) the expired federal credit.
Does Idaho have an SREC market?
No. Idaho does not have an active SREC market, so there are no tradable solar certificates to sell here. Your return comes from no statewide net metering, any state or utility incentives, and avoided electricity costs.
Can I still get the 30% federal solar tax credit in Idaho?
Not if you buy the system. The federal residential (25D) credit was repealed for purchases placed in service after Dec 31, 2025. A leased or PPA system can still tap the commercial (48E) credit its owner claims through 2027, which may show up as a lower rate — but you won't file for 30% yourself on a cash or financed purchase.
What incentives are left in Idaho in 2026?
A 40% deduction (first year, up to $5,000) state tax credit, no statewide net metering, and: Idaho offers a residential alternative-energy income-tax deduction (40% of cost the first year, then 20% for three years, capped at $5,000/year). Always confirm current program status on DSIRE before signing.