✅ Federal Incentives
30% Federal Tax Credit (ITC) applies to solar + battery systems.
MACRS + Bonus Depreciation for commercial projects.
Elective Pay (Direct Pay) allows nonprofits, governments, and others to receive the credit as a cash payment (requires IRS registration).
Transferability available for eligible entities to sell unused credits.
✅ State Incentives
No statewide solar tax credit or rebate.
State Energy Loans: Low-interest loans may be available via the Idaho Governor’s Office of Energy & Mineral Resources (check current availability).
Local Tax Agreements: Utility-scale projects may negotiate local tax treatment (PILOTs, exemptions).
Check Local Programs for any municipal or county-specific offerings.
✅ Utility Rules & Net Billing
Idaho Power: Moved from net metering to net billing / avoided-cost export credits. Exported power is credited at lower rates based on the Export Credit Rate (ECR) methodology.
System size limits and compensation vary by rate schedule.
Rules changed significantly via PUC proceedings (2023-2025); new systems receive lower compensation than under legacy net metering.
Some customers may be grandfathered under older terms - check the project’s interconnection date.
Avista & Rocky Mountain Power:
Avista still offers net metering in some cases.
Rocky Mountain Power has separate rules in eastern Idaho.
Always verify each utility’s current tariffs.
Co-ops & Municipal Utilities:
Policies vary; some offer net metering, others use avoided-cost rates.
Always confirm interconnection and compensation terms with the specific utility.
✅ For Nonprofits
Elective Pay enables access to the federal ITC without needing tax liability.
Third-party ownership (e.g., PPA, lease) is common if Elective Pay isn’t used.
Combine federal incentives with state loans, local grants, or utility programs to maximize savings.
Confirm whether any funding affects ITC or Elective Pay eligibility.
Summary
The 30% federal ITC (or elective pay) is the main incentive in Idaho.
Idaho lacks major state tax credits or rebates but offers loan programs and local tax deals.
Net metering is replaced by net billing statewide; export compensation is significantly lower than retail rates.
Utility rules vary-always check the customer’s utility for tariffs, system caps, and grandfathering status.
Nonprofits can benefit from Elective Pay but must plan carefully and review all funding sources.