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Idaho Slashes Solar Net-Metering Rates, Adds Monthly Fee

Solar industry faces significant changes in Idaho. Slashing net-metering rates and adding a monthly fee may discourage future installations.

On the right there are car, plants, current pole, grass and soil. On the left there are plants,...
On the right there are car, plants, current pole, grass and soil. On the left there are plants, flowers, trees, fencing, house and a pole. Sky is sunny.

Idaho Slashes Solar Net-Metering Rates, Adds Monthly Fee

Idaho's solar industry faces significant changes. The Idaho Public Utilities Commission (PUC) has slashed net-metering rates by 31%, while Idaho Power has introduced a $15 fixed monthly fee for all electric bill ratepayers, effective January 2024.

The PUC's decision, finalized in late 2023, reduces compensation for rooftop solar owners who installed their systems after December 20, 2020. The new export credit rates are approximately 65 cents per kWh for summer on-peak, 39 cents per kWh for summer off-peak, and 90 cents per kWh for the non-summer season.

The PUC suspended Idaho Power's requirement to update its export credit rate until 2028, despite a study by Crossborder Energy valuing excess solar energy at 18.3 cents per kWh, much higher than Idaho Power's own valuation of 2.8 to 4 cents per kWh. The PUC will consider petitions for reconsideration until October 21, with the next formal opportunity to comment in April 2028.

Public opposition to the rate decrease was overwhelming, with 88% of comments opposing the decision. A total of 850 comments were received during the public comment period.

The changes, which aim to balance solar and non-solar customer costs, have sparked controversy. Solar advocates argue that the reduced rates undervalue solar energy and may discourage future installations. Idaho Power and the PUC maintain that the changes ensure fairness and stability in the state's energy market.

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