Adding solar panels and switching rate plans can lower your Idaho Power Company electric bill
Updated: October 22, 2020Installing solar panels can help reduce your IPC bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Solar panel cost calculator
Are solar panels worth it for Idaho Power Company customers?
Perhaps. With a personal income tax deduction for solar which can save you about $1,100 over four years on an average sized system, and Idaho Power’s net metering program still intact, home solar panels are an investment worthy of your consideration. Idaho Power’s excess solar generation rate rider allows you to get full credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits accrue at the same rate you pay for electricity, and roll over to the next month’s bill.
Does Idaho Power Company offer net metering credits for exported solar power?
Yes, Idaho Power Company offers net metering credits.
Under the Idaho Power Company net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
What incentives, tax credits, and rebates are available to IPC customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a IPC customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$9,102 |
|
Residential Alternative Energy State Tax Deduction (claimed over 4 years)
(State)
For the year a system is installed, homeowner can claim a tax deduction equal to 40% of the system's installation costs, up to $5,000. For the next three years, 20% of the system costs, up to $5,000, can be claimed. At Idaho's current tax rate of 6.5%, this represents a total possible tax credit of $1,300 ($325 for each of 4 years, on a system that costs at least $25,000). |
-$1,300 |
|
State Energy Loan Program
(State)
Low interest Loans for Renewable Energy projects ranging from $1,00 to $15,000 for single family loans |
Varies |
|
Idaho Power - Net Metering
(Utility)
Net excess generation is credited at the retail rate. Credits expire at the end of the billing cycle. |
Varies |
| TOTAL | -$10,402 |
*Based on 14.36 kW system, average installation cost $31,638
How much does installing solar panels save the average Idaho Power Company residential customer?
If you input the details for a IPC customer with a power bill of $150 per month into the best online solar panels calculator, it tells you that you need a 14.36 kW solar system that will produce 20,540 kWh per year and that this system will return the owner a $35,312 profit after repaying the cost of the system.
The solar savings possible for you as an IPC customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical IPC customer with a $150 per month electric bill prior to solar and who installs a 14.36 kW solar system.
How much do residential solar panels cost for IPC customers?
Solar prices near you
Net profit (savings less system cost)
$39,125-$47,819
Payback period
8.9-10.8 years
Recommended size for the selected utility bill
12.1kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 14.36 kW |
|
Annual Power Generation 20,540 kWh |
|
Pay-back time (assuming Cash purchase) 10.7 Years |
|
Internal Rate of Return (IRR) on Investment 3.2% |
|
Gross cost $31,638 |
|
Total Upfront Incentives and Rebates -$10,566 |
|
Net Cost of System after rebates and incentives $21,070 |
|
Total Cost of Utility Power Avoided over 25 years $56,382 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Idaho Power Company customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from an Idaho Power Company customer installing a 14.36 kW solar system on their property:
A solar system generating 20,540 kWh per year will save you money AND make the world a nicer place
Saves you
$1,412
on average per year
Reduces CO2 emissions
10.17
tons per year
Equivalent to planting
71 trees
per year
Equivalent to driving
22,492 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Idaho Power Company customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.20 per watt or $21,070 for a standard 14.36 kW solar system after the customer claims the 30% federal solar tax credit.