When you decide to move forward with a residential solar project, you’ll want to take advantage of every available financial incentive. And, you’ll be glad to know that Idaho offers a number of ways to reduce the net costs of home PV system installation.
Homeowners who live elsewhere aren’t as fortunate, as many states have ended their tax incentive programs in response to the shrinking costs for photovoltaic equipment. If you live in Idaho, however, you can save a good deal of money on residential solar thanks to the state tax deduction.
The Basics of Idaho’s Residential Solar Tax Deduction
Idaho’s solar tax incentive – officially called the Residential Alternative Energy Tax Deduction – is one of the strongest among state-level programs.
The first year after going solar, homeowners in Idaho can take a deduction of 40 percent of their costs for photovoltaic equipment and PV system installation from their personal income taxes. For the following three years, homeowners can deduct another 20 percent. Each year, the deduction maxes out at $5,000, or $20,000 in total, but the program allows Idaho residents to save thousands.
Can Idaho Homeowners Still Claim the Federal Solar Tax Credit
Absolutely – and those who capitalize on both the state-level residential solar tax deduction and the federal solar tax credit can slash their home PV system costs by 50 percent or more.
Keep in mind, though, that the federal solar investment tax credit is only an option for homeowners who use cash or take out a solar loan to pay for PV system installation. The ITC doesn’t apply to anyone who leases a photovoltaic system. Also, when calculating the tax credit, use your net costs, subtracting any incentives you have received. If you use the gross price instead, you can expect to get a tax bill.
Does Idaho Offer Any Other Residential Solar Incentives?
The state of Idaho has no cash rebates for homeowners who install PV systems, and there are no grants for going solar. Also, no state law requires the utility companies to provide customers with net metering credits.
But, that doesn’t mean Idaho has no other residential solar incentives. The state’s three largest utilities – Rocky Mountain Power, Idaho Power and Avista Utilities – currently have their own net metering programs. Customers receive full retail-rate credit on their monthly bills for any energy their home PV systems send to the grid, and that offsets much or even all of costs of grid-generated electricity used by the household.
For more details on the financial incentives available to Idaho homeowners who adopt solar power, turn to the professional team at Nationwide Solar. We’d be happy to answer all of your questions and, of course, we’d love to install your home PV system. To arrange for a free, no-obligation residential solar consultation at your Idaho property, contact us today.
