Idaho gets three-quarters of its in-state electricity from renewable sources, the fourth highest share of any state. While most of that comes from hydropower, the state is taking steps to make sure rooftop solar panels on the homes of Idahoans are part of the mix.

If you live in Idaho, you can take advantage not only of the 30% federal solar tax credit, but also a state tax deduction of 40% of the cost of your solar panel system. You can also deduct 20% more each year for up to three more years, with caps of $5,000 per year and $20,000 total.

That's a big incentive, and it helps balance out the fact that electricity is pretty cheap in the Gem State. The average electricity cost was 11.78 cents per kilowatt-hour in June, among the lowest in the country, and the average electricity bill that month was less than $90. 

If you're looking for energy independence and freedom from fluctuating electricity prices, here's what you should know about going solar in Idaho -- starting with the best solar installation companies operating within the state.

Best national solar panel companies in Idaho

Freedom Forever

Best for cash customers

Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that's changing.

Tesla Solar

Most affordable

Tesla's solar branch seems to be the least loved of Elon Musk's ventures. Even Tesla's Solar Roof seems to get more love.

If price is the thing you won't budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.

Where you might miss out is customer service. Discussion online seems to suggest Tesla's service is a bit of a gamble.

Local solar panel companies in Idaho

How to determine which solar company in Idaho is best for me

Solar panels aren't an impulse purchase. This is a big project costing tens of thousands of dollars, and you should approach it carefully. Your first step: Identify several companies that could potentially do the work.

Once you have a list of potential installers, narrow the list to those who offer the products and services you're looking for and those with good customer reviews and reputations. Get detailed quotes from multiple companies -- they should come to your house and look at your roof, as well as consider your energy usage and needs. Choose not just based on price, but who can do the job and who offers the best warranties and service.

Want something smaller than a whole-home solar system? See our picks for the best portable solar panels and solar generators.

Cost of solar panels in Idaho 

Here's a look at the average cash price for a typical solar panel system in Idaho before factoring in tax credits and incentives, according to data from FindEnergy.com.

The following map will show you the total cash price, cost per watt and system size for a typical solar panel system in your state, according to data from FindEnergy.com. The prices displayed don't factor in tax credits or state incentives. Certain states don't have any FindEnergy solar data and are grayed out on the map.

Idaho solar panel incentives and rebates

Even with solar prices decreasing 52% in the last decade, installation is a substantial investment. Solar tax credits and incentives are available to make choosing green energy more affordable. Applying for the federal residential clean energy credit, a federal incentive, saves 30% on the total cost of a solar system and appears as a credit on your next filed tax return. The credit is valid from the beginning of 2022 through 2032 before decreasing to 26%. 

Idaho does not offer property or sales tax exemptions for a solar installation. This means, you could see a raise in your property taxes since a solar panel install can raise the value of your home and sales tax is likely added to your total price tag. 

Here are other solar incentives in Idaho. 

Idaho solar incentives

How solar-friendly is your state?

CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident. 

Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade. 

Here's how your state scored on CNET's solar policy test.

Idaho

Grade: F

Incentives available:

• Initial 40% income tax deduction for a solar panel system, with a 20% deduction each year for the next three years. Maximum yearly deduction of $5,000; maximum total deduction of $20,000.
• Utility-governed net billing -- solar buyback at the wholesale rate

Strongest scoring categories:

A massive state solar tax credit will help residents recoup much of the cost of their solar panel system through income tax rebates. While this tax credit depends on having a high enough income tax liability to take advantage of it, a maximum total deduction of $20,000 is enough to cover a substantial amount of the cost of a solar panel system.

Categories to improve:

It's never good to see utility-governed net billing; leaving the credits for sending energy to the grid in the hands of the utility companies means residents are going to see unfavorable rates, increasing their solar payback periods. While Idaho has a fantastic solar tax credit, it's also missing other basic state incentives, such as a property and sales tax exemption on solar panel systems.

How to pay for solar panels in Idaho

Solar panels can be a major investment. Consider all of your payment options before making a final decision. While some options have more potential benefits, it depends on your budget. 

Cash: A cash purchase is best for a quicker return on investment since there are no fees and interest like with a loan. If you are planning ahead, consider putting savings flagged for solar purchase in a high-yield savings account which can earn interest while it sits. 

Loans: Solar loans are an option but may result in interest and fees, which can add up to paying more in the long run. You can also consider home equity or personal loans from a bank or other lender, or a home equity line of credit. Home equity financing comes with its own risks -- your home is the collateral -- but might offer lower rates and better terms.

Other options: Solar leases and power purchase agreements are options to experience savings from solar without owning the panels yourself. For solar leases, you pay a fixed monthly price to the solar company, which installs and owns the panels. Power purchase agreements differ because you pay a fixed price per kilowatt-hour of electricity the solar panels use. You won't be eligible for the tax credits for those systems -- the company that owns them will get that credit.

Installation factors to keep in mind

Before deciding on installing solar panels or choosing a solar company, review the following questions.

1. Does your current insurance policy cover solar panels? If you need help, contact your home insurance company to update your policy. 
2. Where is your home located? Solar panels perform best with direct sunlight. Even though solar panels can generate electricity with shade, consider whether your home is located in the best place for sunlight. 
3. Are you part of an HOA? Homeowner associations in Idaho are not allowed to make rules prohibiting solar panels, but there may be guidelines for placement. Check the rules for your HOA or other neighborhood association for any restrictions. 
4. What is your roof's condition? Repairs must be made before installation if you have an old or damaged roof. Removing solar panels to repair your roof is possible, but an additional expense. Factor any needed repairs into your total cost.
5. Are you a renter? Solar options for renters include community solar programs for a subscription-style service. 
6. Is the process completed in-house? Some solar companies hire subcontractors to complete parts of the installation process, which can be confusing for communication. It's important to ask your selected company whether or not they do all of the work in-house. If not, ensure you have a list of who to contact during the process.
7. Have you received multiple quotes? Getting price estimates from multiple companies can help you decide which is right for your budget.
8. What is the company's warranty? Most companies offer a quality of work warranty in addition to manufacturer warranties. The warranties usually range from 10 to 25 years. When comparing price quotes, also compare the length and terms of the warranty.
9. What kind of solar panels will you get? Some panels are more efficient than others. And if you get a solar roof, you might have a system that looks more like traditional shingles. 

How we found the best solar companies

Idaho solar panel FAQs