Idaho, the "Gem State," obtains ample sunshine throughout the year, providing an excellent opportunity for property owners to invest in a solar system. Though Idahoans savor an amazingly low electricity rate, ranking 3rd lowest in the country, and investment in solar is still unpopular, growth is projected in upcoming years. This is because, aside from gaining monetary benefits and solar incentives long term, property owners can impart on the environmental viability.
To understand what solar investment can do for you, check out the solar incentives, rebates, and benefits a property owner can revel in.
Idaho provides a tremendous state tax credit with a 100% tax reduction. When property owners invest in a solar system, they can deduct 40% of the cost of their residential solar energy system from the state taxes they owe during the first year and a deduction of 20% of the price for three (3) consecutive years.
If your solar energy system costs $18,000, your state tax credit would be $18,000 x 40% = $7,200 in the first year, which a property owner can take off from their state income. And for three consecutive (3) years, a property owner can deduct $3,600, which is 20% of the cost of their solar energy system.
The Federal Investment Tax Credit (ITC) is available to Idaho property owners, and it will substantially influence property owners who purchase their solar panel systems outright. The ITC is undoubtedly the significant tax solar incentive for Idaho property owners. This credit currently amounts to 26% of your solar system's cost. In 2023, the tax credits for solar installations will drop to 22%. This is one of many reasons why it makes sense to go solar without delay.
And if you invest in a solar panel system by the end of 2032, the federal tax credit is 30% of the price of your solar panel system. This means 30% off the system's total cost, including equipment, labor, and permitting.
If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
By 2033, the federal tax credit will fall to 26%.
For property owners investing in solar panel systems, the Idaho Governor's Office of Energy Resources (OER) State Energy Loan Program provides low-interest financing options which a property owner can lease from $1,000 to $15,000 for residential and $1,000 to $100,000 for commercial and industrial loans with a 4% interest rate on a five (5) year term.
Idaho law permits solar easements to which property owners can come into a solar easement agreement of their own accord with their next-door neighbors to guarantee sufficient sunlight coverage. The solar easement is conveyed with the property title.
Net metering is a plan in which solar panels or other clean energy generators are connected to the grid, allowing customers to offset the cost of the power they draw from the utility with credits they earn on their capture. Even though statewide net-metering laws are not available in Idaho, three (3) investor-owned utilities, namely Avista Utilities, Idaho Power, and Rocky Mountain Power, initiated and established a net-metering rate that has been approved by the Idaho Public Utilities Commission (PUC).
These three (3) utility companies have been granted to provide solar incentives and credit for any energy that property owners return to the grid at the total retail price.
It will be sensible and economical to solicit advice from a reputable solar company to explore all the possible solar incentives and rebates you can get by switching to solar.
So go solar today, save more on your energy cost, and be environmentally friendly with the help of Idaho solar incentives!
EnergyBillCruncher is an unbiased and free online resource created to benefit homeowners. Join our newsletter & stay up-to-date with the latest solar news.
Our team is here for you! Sign up and get Access to premium leads that convert.